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25 November 2024 | 5:05 pm
If any offering from the blockchain market has been revolutionary, it has been Security Token Offerings. Its predecessor, Initial Coin Offerings (ICOs) allowed for promising projects to raise funds by selling native tokens that would hopefully appreciate in value if the project was successful.
STO’s go a step further by allowing people to buy tokenized ownership in assets and projects, oftentimes giving them access to investment vehicles they could not buy outright. This has been heavily leveraged by the property market, with various real estate projects being tokenized and sold. Despite this, there are a few underlying issues within the STO market that need to be addressed, mainly the fragmentation of projects.
STO projects are more common these days and while this means that there are more opportunities to buy into, each comes with their own rules and platforms. Oftentimes, users need to sign up on a specific blockchain-based platform ahead of a sale and then buy a specific digital token that represents ownership in the project.
The problem with this is that investors will have to juggle multiple platforms, sets of rules, and token setups in order to buy into investment vehicles. While this worked when the STO sector was first emerging, it must be improved going forward, especially as more people enter the market.
In the same way, crypto users do not log into a different website every time they want to buy a different token, STOs need to be accessible from a single platform. One company, Genius Estates, has already created a marketplace for STOs that runs on its native token, GENiUX.
GENiUX is the native coin in the blockchain-based investment marketplace specifically designed to allow for seamless investments in STO projects from anywhere around the world using one token. When users hold their native token, they can log into Genius Assets marketplace next year and buy into any number of STO projects using the balance from their wallet. Until then, you can still invest in the real estate platform, Genius Estates.
Some of the offerings include buying into real estate projects, aviation projects, and even NFTs. Holders of the token will be able to receive dividends from the projects they invested in, in the form of the native token which, once again, streamlines the process and ensures that all transactions can be viewed from a single dashboard.
For those users who refer others to Genius Estates, rewards are paid out in the native token, which is up to ERC-20 standards, and also euro.
Genius Estates is having the first phase of its token pre-sale in August 2021 and as more projects are boarded onto its platform, the price of its token will rise even more. There will be a total token supply of 1 billion tokens and a circulating supply of 700,000,000 tokens.
One of the company’s biggest focuses with regards to investment vehicles is real estate, with the first property project in Ireland underway and dividends to begin disbursement by January 2022. All real estate projects that are invested in will pay out rental income to investors on a trimester or annual basis and for those looking to build a passive income source, this would be a good option.
Other dividends from any type of asset like air, roads, and so on will be paid depending on the project itself. The major theme, though, is inclusivity and allowing everyday consumers to make money on certain investment opportunities that would normally not be available to them due to high costs. Now, people can invest with smaller amounts of money.
As the Genius-Estates website states, real estate investment is no longer just for professional or institutional investors – now, anyone can claim the real estate market and begin building wealth.
What Genius Estates is doing goes beyond just offering a token for its customers; it is actively bringing the STO sector under one roof. By cutting out the often long process of sourcing different STOs and allowing customers to buy from a single place, they are streamlining the investment process.
Furthermore, it is providing the opportunity for passive income creation for customers who can invest in real estate, NFTs, air travel, sports, and so on. From buying into investment vehicles to receiving dividends to referring friends and family, GENiUX is allowing its users to fully tap into the power of blockchain and reap the benefits as they do.
The STO sector, as it grows, will likely see the same trajectory as the crypto industry in that consumers will have single platforms to buy a multitude of assets as opposed to doing it all individually. STOs will also become a bonafide way of creating passive income, albeit with the twist of being attached to blockchain technology.
The company will be making more announcements following its presale, including new projects to be onboarded and new features such as its savings app which is due to launch later this year.