The bullish absorption in the security tokens sector in the first three quarters of 2020 has really decreased, as monthly volumes are down by more than 40% for the second time in a row.
Since it totaled nearly $ 22 million in August, monthly trading in the security token has dropped to $ 9.15 million in September and then decreased to $ 5.27 million in October.
With 98% of sector trading done through Overstock’s tZERO alternative trading system, Overstock’s plan to increase volumes by issuing “digital dividends” in the form of collateral passed on to OSTK shareholders appears to have lost its relevance.
Overstock’s security token OSTKO, which represents 50% of the total market value of security tokens, lost 18% of its value in October, while its monthly volume decreased by 20% to around $ 3 million. According to CoinMarketCap, OSTKO’s market cap of $ 252 million would place it at number 53 on the overall crypto asset list.
Oddly, the token started trading in October at $ 70, which is roughly 20% less than OSTK shares. However, OSTKO closed the month at $ 57 – a dollar higher than Overstock’s stock price.
The bulk of the decline in the security token occurred in October in the token markets of TZROP tZERO, which brought in only $ 2.15 million last month – down 60% from September when it was $ 5.29 million. The token also lost 8% of its value last month.
TZROP, with a capital of $ 180.7 million, is the second largest security token, and is ranked 65th among cryptocurrencies overall.
While tZERO maintains a dominant position in the secondary security token markets today, a growing number of companies are creating platforms to facilitate the creation and issuance of security tokens.
A week ago, Ignuim teamed up with crowdfunding platform Fundwise to launch a token crowdfunding service targeting small and medium-sized businesses.
Last month, Japanese financial services giant SBI Holdings announced that it would implement a security token offer to issue shares in its e-sports subsidiary.