Security token markets continued to decline in the past month, with trade volume across the industry falling more than 40%.
The bullish momentum enjoyed by the token sector’s security in the first three quarters of 2020 has well and truly declined , with monthly volume hitting by more than 40% for the second time in a row.
Since it scored almost $ 22 million in August, the monthly security token trade fell to $ 9.15 million in September, before dropping to $ 5.27 million in October.
With 98% of industry trades taking place in Overstock tZERO’s alternative trading system, it appears that Overstock’s plan to increase volumes by issuing a “digital dividend” in the form of security sent to OSTK shareholders has lost its steam.
The token OSTKO security of Overstock – representing 50% of the market capitalization of the combined security token – lost 18% of its value in October, while its monthly volume fell 20%, to about $ 3 million. OSTKO’s market capitalization of $ 252 million would rank it as the 53rd largest crypto asset in general, according to CoinMarketCap.
Interestingly, the token started trading in October for $ 70, almost 20% less than OSTK’s shares. However, OSTKO closed the month at $ 57 – one dollar more than Overstock’s share price.
Most of the October decline in security token volume occurred in the tZERO TZROP token markets, which generated just $ 2.15 million in trades last month – a 60% drop from $ 5.29 million 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 token, ranking it as the 65th largest overall active crypto.
While tZERO has maintained dominance over the secondary security token markets to date, an increasing number of companies are building platforms to facilitate the creation and issuance of security tokens.
A week ago, Ignuim joined the fundwise stock crowdfunding platform to launch a tokenized crowdfunding service aimed at small and medium-sized businesses.
Last month, Japanese financial services giant SBI Holdings announced it would make a security token offer to issue shares in its e-sports subsidiary.