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The security token volume was halved for two consecutive months

November 4, 2020

The upward momentum of the security token sector slowed in the first three quarters of 2020and monthly volume fell by more than 40% for the second consecutive year.

Since it cost nearly $ 22 million in August, Monthly security token trading fell to $ 9.15 million in September before falling to $ 5.27 million in October.

Because 98% of the trade in the sector is carried out via the alternative trading system tZERO, Ownership of OverstockIt appears that Overstock’s plan to increase volume by issuing a “digital dividend” in the form of air-dripped securities to OSTK shareholders has lost steam.

The security token volume was halved for two consecutive months
The security token volume was halved for two consecutive months

Overstock’s security token OSTKO, which represents 50% of the market capitalization of the combined value token, lost 18% of its value in OctoberThe monthly volume decreased by 20% to around USD 3 million. With a market capitalization of $ 252 million, OSTKO would be the 53rd largest crypto asset overallaccording to CoinMarketCap.

Oddly enough The token traded for $ 70 in October, almost 20% less than OSTK stocks. But still, OSTKO closed the month at $ 57, a dollar higher than the price of Overstock stock.

Most of the security token volume that fell in October took place in the markets for tZERO’s TZROP token, which traded just $ 2.15 million last month, down 60% from $ 5.29 million. USD equivalent in September. The token also lost 8% of its value last month.

With a capitalization of $ 180.7 million TZROP is the second largest security tokenThis makes it the 65th largest crypto asset overall.

Source: STOMarket

While tZERO has maintained dominance over the secondary security token markets to this day, A growing number of companies are building platforms to facilitate the creation and issuance of security tokens.

A week ago, Ignuim has partnered with the equity crowdfunding platform Fundwise launch a tokenized crowdfunding service for small and medium-sized businesses.

Last month, the Japanese financial services company SBI Holdings announced that would make a security token offering to issue shares in its esports subsidiary.