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- 🥧 Security tokens are the whole pie
🥧 Security tokens are the whole pie
🔺 Security tokens dwarf crypto & most NFTs are failing
Jonah Schulman
December 06, 2021
Introducing Mazzanti Automobili - an Italian-based hypercar manufacturer similar to Bugatti and Koenigsegg!
Mazzanti has been featured in 24 Hours of Le Mans, blockbuster movies, and video games!
Currently seeking investors via a Regulation D 506(c) security token offering, Mazzanti has stated the expected return will be 20% in just 8 months!
Check out the awesome car! 👇
Gooood morning, Rainmakers!
1️⃣ Security tokens are the whole pie: Sure, crypto, NFTs, DAOs, and DeFi are great, but they are playing in the minor leagues. Security tokens dwarf all of these!
2️⃣ Miami Art Basel Takeaways: Many NFT creators will fail due to high Ethereum gas fees & NFTs with real-life utility will win!
Without further ado, it's time to…
Get liquid 💧
🥧 Security tokens are the whole pie
Stop drooling, I'm not talking about actual pie!
I'm talking about the pie that represents the global capital markets!
Sure, crypto, NFTs, DAOs, and DeFi are great, but they are playing in the minor leagues.
Security tokens are the pinnacle of it all.
Put simply, security tokens are digital representations of real-world assets recorded on the blockchain.
Let's look at the total value of these blockchain sub-sectors:
*The total value is difficult to calculate, as the market is fragmented
Security tokens account for $5 quadrillion+ of the addressable market.
Just look at this graphic:
Real estate is $327 trillion alone, which is more than 150X the crypto market.
When you start to add other markets like derivatives, private companies, public companies, debt, supercars, art, wine... you start to comprehend why security tokens really are the whole pie.
One of the most overlooked aspects of security tokens is the value is already there - the assets are simply being represented on a digital layer for them to function in a blockchain-based system, which comes with a plethora of benefits.
Non-tokenized real estate:
Tokenized real estate:
Both of these pieces of real estate are the same, but when it's accessible via the blockchain it opens up the floodgates of opportunity.
Opportunity: Liquid private real estate market, 24/7 trading, instant-settlement, international access, and much more for another time 😉
For instance, when you look at cryptos like Bitcoin, Ethereum, Dogecoin, or even the s***coins, they all have one thing in common...
They are all fighting for validation.
Some may be further along, but the point is all cryptos, NFTs, and DAOs start from zero and try to go from zero to one; whereas, with security tokens, the value of the assets is already there!
That's not to say crypto, NFTs, DAOs, or any other blockchain sub-sectors don't have value, but the value is just a fraction of what real-world assets represent.
Every single asset that is owned privately and publicly will become a security token!
On STOmarket.com we track 100+ real-world tokenized assets trading on marketplaces around the globe, with many more going live soon!
🌴 Miami Art Basel Takeaways
This past week, I had an amazing opportunity to partake in Art Basel week!
What I really should say is I had the opportunity to partake in Miami NFT/Tech week.
From surging Uber prices to Bored Apes on supercars to meeting Web3 builders, we may have officially topped.
I mean seeing a Bored Ape NFT painted on a car screams top if you ask me.
Here are some of my key takeaways from the week:
1. NFT creators will get hurt: While I attended NFT Bazl at FTX Arena, I was listening to creators discuss their NFT projects.
I instantly became worried about the success of their NFTs.
Why?
The vast majority of creators are not familiar with NFTs; therefore, most of them will utilize the Ethereum blockchain to mint their NFTs, which will force buyers/sellers to pay insane gas fees.
The unfortunate reality is that many NFT projects will fail because the majority of people will not pay the high gas fees.
2. NFTs with real-world utility will win: There are hundreds if not thousands of NFT projects that are just a piece of art, with no real-life utility.
When buying an NFT, you have to ask yourself... are you buying into a facade, a community, or real-life perks?
For example, a local Miami tech community by the name of Shrimp Society launched their NFT project last week.
Some of the benefits or bennies as they call them, enable NFT holders to receive discounts at coffee shops, bars, and even exclusive access to Shrimp Society events around Miami.
Now that's an NFT I can get behind!
What kind of NFTs do you prefer?
💦 What else is Drippin’
A National Stock Exchange That Supports NFTs? Switzerland-based exchange, SDX, is looking into NFTs!
Republic to Acquire Seedrs in $100M deal: Republic is expanding its reach to Europe with this acquisition!
Borderless Capital Launches $500M Algorand-Focused Fund: Look out for Algorand-based projects receiving funding!
✍️ 📹 Content from the team
Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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.
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 through 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