Security Token Market (STM) is a world leader in the digital security space. Most people in this space recognize that anything that is a security can and likely will be traded using blockchain technology. This means stocks, bonds, real estate, etc. will all eventually trade similarly to how cryptocurrency trades today. This is a huge market, and STM is at the leading edge of this financial revolution.
If you’ve watched their videos or listened to their podcasts, you know STM has some incredibly smart, knowledgeable and energetic individuals in their team. One of them is Jonah Schulman, whom I got to know through some exchanges pertaining the value of NFTs.
Some of Jonah’s tweets are true gems. Without further due, here’s the interview with Jonah, from Security Token Market..
Can you explain to our readers what the Security Token Market is all about?
Absolutely! Security Token Market (STM) has been around since the inception of the security token industry.
Over the past 3 years, through consistency, diligence, and getting into the weeds STM has emerged as the trusted source of security token data and media!
We have two key business verticals: Data & Media.
Data: When it comes to security token live-trading data we are simply unmatched. We track 170+ security tokens and tokenized stocks from 10+ marketplaces from around the globe via API integration.
The purpose behind the data is to bring price transparency and integrity for our 30k+ a month users so they can feel confident in their investment decisions as the industry moves forward and blockchain-based assets are adopted!
Media: To bring awareness and increase adoption, we have established multiple media properties. I personally spearhead the What’s Drippin’ newsletter which has amassed over 1.7k subscribers in just 6 months. We also have a Podcast, The Security Token Show that has over 37k downloads.
On top of that, we have several other media properties discussing everything there is to know about security tokens, with many more going live soon!
How did you get involved with the security token market?
I got involved by chance really.
I ended up working for a famous blockchain platform after meeting them at the North American Bitcoin Conference in Miami a few years ago. I joined the team as an advisor and brand evangelist to help spread the word of the platform. I spoke at conferences around the world in front of hundreds of people and it was an incredible experience!
Through that experience, I discovered the amazing technology of blockchain and how it can be leveraged for fundraising via ICOs. Of course, ICOs are not securities offerings but offerings of utility tokens for the issuer’s platform.
This same technology can be used for securities, which is what we call a security token offering (STO) to fundraise for asset-backed securities. Through the connections I made I was offered the opportunity to be the first employee at Security Token Market in October of 2018.
What is it like to work at Security Token Market and be at the forefront of capital markets disruption?
Honestly, it’s a true blessing! I love working for Kyle and Herwig – they created an incredible culture that fosters growth and innovation.
Being at the forefront of the future of the capital markets has provided tremendous advantages and perks:
- See investment opportunities before the masses do
- Become proficient in topics before the majority does
- Connect with leaders across the world – I have had conversations with people on every continent from the Faroe Islands to Australia – the security token industry is global and it’s been so freakin’ cool to talk to people from all corners of the world
In simple terms, what are security tokens?
Security tokens simply are securities but on the blockchain. They abide by all required regulatory frameworks as traditional securities do, but are recorded and transferred via the blockchain.
Can you explain how security tokens work?
Definitely!
Let me use an example:
Security tokens, as I defined them, are simply securities like Apple stock but it runs on the blockchain.
Security tokens are any asset with tangible value, for example, it could represent a share of the Burj Khalifa, exotic supercars, wine, Van Gogh paintings… you name it!
Benefits of running on the blockchain include:
- 24/7 trading
- International access
- Instant-settlement (Traditional markets take 2 business days minimum to settle)
- Self-custody (ability to hold your securities in your own wallet instead of on Robinhood or TD Ameritrade, just like you do with Bitcoin, Ethereum, or Ravencoin)
What is the difference between an NFT and security tokens?
Security tokens and NFTs both run on blockchain, but security tokens represent the tangible value of an underlying asset; Whereas, NFTs are merely collectible images usually with no physical representation.
Similarities:
- Ownership recorded via the blockchain
- Transfers facilitated via the blockchain
Differences:
- Security tokens are fungible (multiple owners at the same time)
- For example: Shareholders of Apple stock
- NFTs are non-fungible (Only one owner can exist)
- For example: Cryptopunks, baseball cards, etc.
In what instances can an NFT become an illegal security?
This is interesting as it is technically not concrete, but what I can say is that when you get into fractionalizing an NFT is when you start entering risky territory!
An NFT is defined as a Non-fungible token, which means one of one, it is innately unique. When you start fractionalizing ownership of something that is innately unique you could get into some trouble.
Additionally, the language used when offering an NFT is crucial – for example, if the issuer solicits the NFT as “Buy this NFT, it represents ownership in X” or “Buy this NFT you will receive dividends” you start to tread murky water.
Can an NFT be a representation of a security token?
Yes, it can! There are actually examples of this. For example, as I mentioned, an NFT is one of one. Club Necaxa, which is a soccer team in La Liga out of Mexico, offered 1% equity stake in the soccer club represented as a compliant NFT security token. Essentially, Club Necaxa created one token that represents equity ownership in the club, which makes it a non-fungible token.
Why is the Security Token Market bullish about the security token market?
Because it’s inevitable.
First, we had the ICO era – it showed us the amazing fundraising capabilities that blockchain technology enabled.
Then we had/have the NFT era – showing how ownership of collectibles and other unique assets is made more efficient via the blockchain.
Both are incredible use-cases, but those are just a fraction of the potential of tokenized assets.
Every single asset in the world that has real tangible value will also be tokenized.
Every single asset, whether they are private or public will be tokenized on the blockchain, offered to a global investor base, and traded on a public marketplace!
Imagine the Burj Khalifa, exotic supercars, wine, Van Gogh paintings, and more in your portfolio – this is a realistic reality that will be here sooner than later.
According to Bain & Company, the real estate industry alone is a $317 trillion (TRILLION!) dollar private market that could be tokenized.
Just wait.
Anything else you’d like to share with our readers?
Firstly, I just want to thank JC Keen & the Ravencoin community for the opportunity to do this interview!
It’s a team effort – as we succeed, Ravencoin will succeed and vice versa!
I also want to add that Security Token Market is doing a security token offering!
This means that for as little as $100 – anyone can become a shareholder in our company and the best part is it will be tradable!
An investment in us is an investment in the future of the capital markets!
As of 10/25/2021 we have had 380 investors around the world pledge over $2M in our campaign.
Reserve your spot to invest now!
Thanks JC for having me!
Disclosures:
• No money or other consideration is being solicited, and if sent in response, will not be accepted;
• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only though the platform of an intermediary (funding portal or broker-dealer); and
• A person’s indication of interest includes no obligation or commitment of any kind.