Editors Note: This article comes fromWebX Labs Daily (ID: gh_3bc595acebaf), reprinted by Odaily with authorization.
Editors Note: This article comes from
WebX Labs Daily (ID: gh_3bc595acebaf)
After the DeFi fever subsided, NFT took over the task of supporting the FOMO sentiment in the market, which to a certain extent alleviated users fear of the ebb tide of the DeFi market. Due to the desire of the entire industry to introduce assets into the chain, NFT, which appeared as early as 2017, has been given high hopes. However, the limitations of NFT itself make it currently only available in the small circle of art games, and it is impossible to realize real out of circle. According to the analysis, NFT has opened a opening for real-world asset chaining, but this opening lacks a very important gatekeeping procedure, that is, the issue of legal warrants. This also makes NFTs market actions daunting, and the breadth and depth of asset introduction are relatively poor. NFT urgently needs an external force to support it. In the past blockchain practice, the STO securitization issuance model may be the most suitable tool. secondary title The so-called STO (Security Token Offering STO) refers to the issuance of security tokens, which refers to the legal and compliant public issuance of tokens under a certain regulatory framework and in accordance with the requirements of laws, regulations and administrative regulations. To put it bluntly, it is a token issued after an authoritative review similar to the current stock or bond market. As a non-homogeneous token, NFT has gone through the STO procedure before going to the chain, and this token contains a compliant warrant, so the NFT that solves the problem of legal warrants can be issued and circulated in the market. Justifiable, reasonable and legal. Through NFT on-chain transactions and off-chain receiving of real-world assets to complete the blockchain transaction process of the entire asset, so that the worlds tradable material assets and other data assets can be expressed on the chain, which will bring hundreds of trillions of dollars in value It is obvious that NFT+STO, as an innovative model for the value circulation of assets on the chain in the future, is obviously the most likely path to success in the current market environment. Of course, STO is not only applicable to NFT assets, but also applicable to homogeneous tokens in the script design of assets, such as income share certificates issued by enterprises. These are not unique, but homogeneous. The shares are the same, similar to Bitcoin and Ethereum. Under unified compliance, the threads of homogeneous ordinary tokens and non-homogeneous tokens NFT are promoted, and more and more huge assets outside the circle are further introduced into the chain to form a complete tokenized world together . secondary title The development status of NFT+STO We also mentioned at the beginning that NFT has appeared as early as 2017, but the current development situation is still lacking. STO was also produced in the same year. On July 25, 2017, due to the failure of the issuance of The Dao project, the event-related investigation report issued by the US Securities Commission SEC clearly stated that The DAO is a security asset. Announcement: Initial Coin Offerings, indicating that, depending on the circumstances of each ICO, digital currencies or tokens issued or sold may be securities subject to federal securities laws. This is the first time that the SEC defines an ICO project as a security, and it is also the identification of Security Token. After three years, the development of NFT and STO can only be said to be unsatisfactory, far from bringing about earth-shaking changes. The main problems of NFT mainly include the following aspects: a. Insufficient infrastructure, lack of various functional agreements, and high learning and participation thresholds for ordinary investors; b. Driven by speculative demand, project tokens fluctuate greatly in the short term, and market speculation cannot support the real value; Similarly, STO is still in a very early stage, and there are not many successful cases. It is fair to say that everyone knows and realizes that there are not many, but as long as everyone uses their imagination or thinks logically, they will know. The accumulation of factors or market resources is inseparable from the STO model. In this process, the token issuer will obtain future economic benefits in advance and further expand the production scale, and investors will also enter through the low threshold of STO, and can further try to build a more real market portfolio. Most importantly, the increase in liquidity that helps off-chain assets migrate to on-chain helps release value for the market through liquidity premiums. Roughly estimated, when illiquid assets become more liquid, there will be A liquidity premium of about 20-30% will be unlocked. The above is the role of the economy, and the most important thing for STO is to go further at the level of regulatory interaction. By adding some additional codes to the token, the requirements of the regulatory layer are met, such as the prohibition of ultra-large and ultra-small transactions, transaction blacklist functions, etc. This is undoubtedly more in line with the needs of the regulators. The compliance of real-name authentication (KYC) and anti-money laundering (AML) ensures the transparency of the participation of companies and investors, which is undoubtedly beneficial to the market. secondary title The future direction of NFT+STO: on-chain and off-chain of assets, reprinted by Odaily with authorization.
The definition of assets in asset securitization is not limited to digital assets. Any tangible asset in the real world can be issued through STO, such as real estate, artwork, collectibles, works of independent creators, etc. The asset categories mentioned above and the current NFT are almost completely overlapped, and the two can be said to complement each other in terms of the number of ways. Therefore, in the future, assets on the chain can first pass the STO audit and issue NFT tokens.
In addition to compliance, STO also has many advantages such as lower operating costs, lower legal risks, and lower entry barriers than IPOs. Most importantly, it has become an important bridge between the traditional financial sector and the blockchain. Utilizing STOs compliant issuance of tokens, the size of assets can be defined at a very small granularity. It is easier to use blocks to express the entire process from the chain of ownership of asset value to the purchase of investors. The smart contract of the chain is automatically executed.
