Security token offerings are still a very niche market. While there is merit to this model compared to ICOs, investors have cooled off on blindly investing in tokens and assets. In Europe, things are not looking all that bad, despite some initial growing pains along the way. A healthy increase in successful tokenized projects shows this market may undergo some prominent changes over the coming years.
26% of STO do not Succeed
Reports like these will always make people what the negative statistics are. According to Fintelum, 26% of security token offerings in Europe have failed or were canceled so far. This can be due to a wide variety of reasons. Either the team didn’t raise enough capital, changed its mind, struggled to find a token sale partner or hundreds of other potential issues. With 9% of the STOs hitting a roadblock early on, it is evident this industry won’t necessarily be as successful as initial coin offerings have been in the past few years.
One also has to keep in mind that Europe is not the most…