The security token wave is growing, will you capitalize or sit on the sidelines?
Gooood Morning Rainmakers,
This newsletter comes to you from another world.
I've been in Iceland this past week, but couldn't deprive my Rainmakers of a newsletter!
As always, let's…
Get liquid 🌊
Supercars but for everyone 🏎
Throughout a person’s life, there are many dreams that we wish to achieve or acquire.
Maybe that dream is going to college, maybe it's starting a family, or maybe it’s owning a supercar.
Sadly, the vast majority of people won't acquire any supercars due to the high-cost nature of the asset.
There’s an old cryptocurrency saying that goes: “When Lambo.”
Essentially, this phrase translates to: “When will my cryptocurrency investment provide a return so high that I have enough capital to purchase a Lamborghini.”
Insert security tokens and blockchain technology into the mix, and everyone can own their dream supercar without relying on a homerun investment return.
A fraction of a supercar, that is.
You heard me.
As I have alluded to many times before, security tokens democratize the capital markets, so that everyone has an equal opportunity.
Instead of a supercar having one beneficial owner paying upwards of 6 to 7 figures, you can have thousands of investors own the same asset simultaneously.
Think of it like this:
In this scenario, the supercar represents a standalone company.
This standalone company value is derived from the value of the supercar.
The standalone company then fractionalizes the equity to sell these fractional shares to a global investor base.
Via this method, aspiring supercar enthusiasts now have the ability to add supercars to their portfolios at an affordable rate.
Luckily for supercar enthusiasts, there is a firm pioneering this idea.
The name of the company is Curio Invest and they are based out of Liechtenstein.
They purchased the Ferrari F12tdf outright and now possess it in their inventory.
It is a beautiful vehicle if I do say so myself 😍
History of vehicle:
Only 799 models were created in 2015
It's based on iconic Ferrari sports cars that won track races at the Tour de France
Initially valued between $450 and $500K
The first secondary sale occurred in June of 2016 - an LA dealership auctioned it off for $1.5 million
Auctioning off your vehicle is one way to earn a return on your investment, but Curio Invest decided to conduct an STO and offer it to thousands of investors around the globe.
Unfortunately, this offering is completely sold-out, but let's look at the deal terms.
Fundraising goal: $1.1 Million
Price per token: $1.00
Liquidity: Tradable on a secondary marketplace
Yes, you read that right.
All you need to do to own this remarkable supercar is pay 1 measly dollar.
It gets better…
If you decided your dream of owning a supercar wasn't what you thought it would be, you can sell it whenever you want on a secondary marketplace!
Security tokens enable the liquidity of privately-owned assets.
Keep an eye out on Curio Invest, I am sure there will be more supercars in the future!
Security tokens are ready for lift-off 🚀
Just recently, the aggregate security token market cap surpassed $700M for the first time ever!
Doesn't it seem like I am constantly saying “for the first time ever!”
That's because I am.
This is a testament to the times we are in.
The security token industry is still in its infancy and growing at exponential levels, so witnessing many firsts is completely natural.
We have been tracking security token live-trading data on stomarket.com since January 25th, 2019.
At that point in time, the market cap stood at a cool $182 million.
The lowest it dropped to was $41,282,005.96 on 03/14/2020 - one would imagine this had something to do with the Covid-19 pandemic.
We closed April with a high of $695 million and then not soon after broke through past $700 million!
The $700 million number is impressive, but eventually, the market cap will be in the hundreds of trillions of dollars.
We at Security Token Market have been preaching for years that every asset will be tokenized.
In order to reach the $1 billion market cap and move towards the $1 trillion market cap, there are a couple of ways we can get there.
Global real estate value: $300+ trillion
Debt: $250+ trillion
Equity: 98K privately-owned firms of more than 250 employees
To put this into perspective, if even .001% of just real estate assets were tokenized, the security token market cap would increase by $3 billion!
If you look at it like that, the industry is minuscule and has barely even begun.
Security tokens are not a fad, this is literally what the entire global financial system will be run on.
You can rely on us at STM to keep you informed every step of the way.
What else is making it rain ☔️
Security Token Market Real Estate Report: April 2021: Market cap and volume were both up this month
German Regulator, BaFin, vs. Binance's Stock Tokens: BaFin is questioning the legality of the stock tokens tradable on Binance
Fun fact of the week 🤯
I learned of something very fascinating in Iceland…
Iceland is so small there's an app that keeps Icelanders from dating their relatives
Imagine dating someone and finding out they are your distant relative - what would you do?
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.