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Dalma Capital to launch STOs on Tezos blockchain, reportedly valued at $1 billion

Dalma capital

$1 billion! That’s the estimated value of the Security Token Offerings (STOs) to be launched by Dalma Capital and BTG Pactual on Tezos Blockchain, according to a press release by the financial institutions. By leveraging Tezos’ platform, the banks aim to tokenize a slew of traditional and alternative investments and estimates the value of existing and prospective token issuance to well over $1 billion.

Security Token Offerings have been touted as the next revolutionary phase in the dynamic evolution of Blockchain technology applications. With some estimates even claiming that asset classes worth an eye-watering $544 trillion could eventually become tokenized as a direct result of STOs. 

While this is an incredibly awe-inspiring application for Blockchain technology, that’ll most likely come to fruition in the future. Currently, STOs have not been able to live up to their hype.

Dalma Capital

Source: Blockchain and crypto — H1 2019

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A quick look at the funds raised by STOs, in comparison with ICO and the latest investment vehicle IEOs, reveals that STO adoption has not matched with the hype around STOs. For example, during H1 2019, Initial Exchange Offering projects raised a whopping $1.62 billion as opposed to $30 million during H1 2018 — a growth of over 5300% YOY.

On the other hand, STO projects raised a cool $419 million during H1 2019 as opposed to $277 million raised during H1 2018 — a 51% YOY growth. While this is still an improvement, it doesn’t match up with the hype around STOs. Indicating that, there are still regulatory and technical problems with STOs to be solved and is likely stopping their mass-adoption.

To know more about STOs check out our comprehensive report on Security Token Offerings.

Notably, Tezos burst into the spotlight in 2017, when the company raised an eye-watering $232 million through an Initial Coin Offering (ICO) in just under two-weeks, according to InWara’s Market Intelligence Platform.

But shortly after concluding its spectacular, record-breaking ICO, the company was slapped with 1 class-action lawsuits as a consequence of the painfully public fallout between several key board members.


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