Security Tokens — a Win for Ethereum and Stellar?

San Francisco, CAAugust 6th, 2018

I most recently came across the above Reddit post inquiring about EOS Security Token offerings.

When prominent companies such as Science Blockchain (SCI) and SPIN (PIN) have decided to conduct ERC-20 security token offerings, it begs us to ask the question — why have other ecosystems neglected to market toward security token offerings to STO on their public blockchains? Other public blockchains that are now also bullish on the security token space include Stellar, which Sharespost GLASS partnered with last week — more on that here.

My assumption is that the more conservative crowd that security token offerings would market to will likely prefer the most popular ERC-20 standard when first “dipping their toes” in and deciding on their first couple of investments to make. A first-time security token buyer would probably not have the risk appetite to test newer blockchains that claim to be faster and cheaper while lacking ERC-20’s track record and existing community. After all, nobody gets fired for choosing IBM.

What are your thoughts? Have you heard of any up-and-coming STO’s planning on raising money through the TRC-20 (TRON) or QRC-20 (QTUM) or XLM standards? Why did they choose to go with these public blockchains? Which public blockchains have the potential to become the de facto standards for Security Token Offerings? Let me know in the comments below.

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Disclaimer: These opinions are solely my own and do not represent the opinions of Sharespost or any companies that I may advise or invest in.

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Thank you kind reader for taking the time to read through my blog! If we haven’t met yet, it’s an honor to make your acquaintance. My name is John Wu and I am currently CEO of Sharespost’s Digital Assets Group. My primary aim is to bridge the gap between professional “institution-grade” asset management and cryptocurrency/blockchain investing.

As a tech investor and entrepreneur, I have always strived to identify disruptive trends before they are well-discovered and well-understood. In the last three years, I have focused on digital assets and blockchain technology. I have invested in cryptocurrencies, and tokens — as well as VC equity of startups building the financial system of the future using blockchain and distributed ledger. I started my investing career at Tiger Management. Later, at Kingdon Capital, I invested in companies across Technology, Media, Telecom, FinTech, and Services. I founded Sureview Capital in 2010 with a strategic investment from Blackstone and raised approximately $400M in AUM. If you’d like to connect, please drop me a line on LinkedIn here.