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Gooood morning, Rainmakers!
Firstly, a L’shanah Tovah is in order to everyone, as it is the Jewish New Year! 🎉
There is a lot to celebrate this year!
Here's a quick roundup for all of you short-attention-span peeps 😉
1️⃣ The Security Token Market Cap Breached $1B: The 1st billion is always the hardest and there are many reasons why we could see $2B by year-end!
2️⃣ What's The Deal With Accredited Investors?: The SEC might be amending the accredited investor requirements… and it's not lookin’ too favorably.
Without further ado, let's dive right in and…
Get liquid 💧
🚀 The Security Token Market Cap Breached $1B
It finally happened.
The moment we have all been waiting for.
The security token market cap broke $1B for the first time ever! 🚀
If you have been here for the last 3 years you know this is an incredible feat.
If you just got here, we welcome you to join us on the journey to revolutionize the archaic, inefficient financial system.
You may be wondering, what was the catalyst that made this possible?
The catalyst was the INX token going live and then more than tripling in price!
INX IPO'd at $.90 and is now trading well above $3!
In 2012, Drake tweeted:
The first of anything or in this case, the first billion is always the hardest.
Now that we broke a strong resistance barrier, the security token market cap is looking to exponentially grow.
Here are the catalysts to look out for:
The Exodus security token is going live 09/14 on tZERO - this will surely push us close to $2B if not over that mark.
tZERO also announced they had plans for two other tokens to go live by the end of 2021!
🤨 What's The Deal With Accredited Investors?
I'll be honest, when I initially heard the news that the SEC is amending the accredited investor definition, my ears perked up like a dog when their owner says the word ‘walk.’
Before I elaborate on what transpired, let's get basic on accredited investors:
Basically, in 1982, the SEC created a ruling that states an individual must have a certain net worth or annual income, in order to participate in private investment opportunities.
It is assumed that if a person has a certain level of wealth they are sophisticated enough to make risky financial decisions like investing in private companies.
You can think of the SEC as parents restricting you from investing in risky deals because you may lose your money.
Income: Individual makes $200K a year or $300K with a spouse
Net worth: $1M in the bank exlcuding primary residence
Back to the ‘plot’…
Why did my ears perk up, you ask?
Well, if the accredited investor definition is expanded to reach a wider audience it would mean that retail investors might have the privilege of becoming one.
“What does that mean exactly?”
It means that more individuals would have access to the most exclusive private investment deals that have been closed off to the rest of the world and granted to the wealthy (the people who qualify as accredited investors).
Unfortunately, the new rules were not in our favor, which made me kind of sad to be quite honest.
“Enough of your jokes, what did the SEC say?”
Well, since 1982, the accredited investor requirements have remained the same.
The SEC has announced they are going to account for inflation and adjust the accredited investor requirements to reflect inflation rates from the last ~40 years:
It is quite unfortunate to see that the number of accredited investors that qualify will now be cut in half from 10% to 5%.
Adrian Alvarez, a Security Token Advisors Consultant had this to say in his recent article disucssing the SECs amendments:
“The accredited investors today already control more than 70% of the wealth in the country as is! Now we’re going to further limit the best deals to those with even more money? It seems like a counter intuitive thing.”
I agree with Adrian, it seems counterintuitive.
We will have to see how this one unfolds - it, unfortunately, may not be in the majority’s favor.
What else is Drippin’💦
The Digital Assets AND Securities Conference Hosted by Vertalo: The security token conference of the year is being happening in Austin, Texas from 09/21-09/23!
Security Token Market Announces Partnership With Turnkey Security Token Platform, Digital Markets: We are happy to partner with Digital to bring awareness to their leading security token platform.
EXO Security Token To Be Listed on Bitfinex Securities Ltd: The EXO security token, which is the video game publisher of Infinite Fleet and other games!
Fun fact of the week 🤯
The security token market cap will move faster than cryptocurrencies
When a traditional asset is tokenized it becomes a security token - for example, a multi-billion property is tokenized, it will increase the market cap by the value that was tokenized
Connect with us ☎️
Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.