If any proposal in the blockchain market has been revolutionary, it is security token offerings. Its predecessor - Initial Coin Offerings (ICOs) - allowed promising projects to raise funds by selling their own tokens, which, if the project was successful, were supposed to increase in price.
STOs go further by allowing people to buy tokenized property in assets and projects, often giving them access to investment vehicles they could not buy directly. This has been largely taken advantage of by the real estate market, where various real estate projects have been tokenized and sold. Despite this, there are several major problems in the STO market that need to be addressed, mainly project fragmentation.
A divided market?
STO projects are becoming more and more common these days, and while that means there are more opportunities to buy, each one has its own rules and platforms. Often, users need to register on a certain blockchain-based platform before the sale starts and then buy a certain digital token, which represents ownership in the project.
The problem is that investors will have to juggle multiple platforms, rule sets and token setups to buy investment vehicles. While this worked when the STO sector was in its infancy, it needs to be improved further, especially as more people enter the market.
In the same way that cryptocurrency users do not go to different sites every time they want to buy a different token, STOs must be accessible from one platform. One company, Genius Estates, has already created a marketplace for STOs that runs on its native GENiUX token.
How GENiUX Works
GENiUX is a native coin in the blockchain-based investment market, specifically designed to seamlessly invest in STO projects from anywhere in the world with a single token. Once users have the native token, they will be able to enter the Genius Assets market next year and buy any number of STO projects using their wallet balance. Until then, you can still invest in the Genius Estates real estate platform.
Some of the proposals include the purchase of real estate projects, aviation projects and even NFTs. Token holders will be able to receive dividends from the projects they have invested in in the form of a native token, which again simplifies the process and ensures that all transactions can be viewed from a single dashboard.
Those users who refer others to Genius Estates are rewarded in native tokens that comply with ERC-20 standards, as well as in euros.
Genius Estates is holding the first phase of its token pre-sale in August 2021, and as more projects appear on the platform, the price of tokens will rise even more. The total supply of tokens will be 1 billion pieces, and the circulating supply will be 700,000,000 pieces.
One of the main directions of the company's investment activity is real estate. The first property development project in Ireland is underway and dividends will begin to be paid by January 2022. All real estate projects invested in will pay out rental income to investors on a trimester or annual basis, and for those who want to create a source of passive income, this will be a good option.
Other dividends from any kind of assets, such as air, roads, and so on, will be paid depending on the project itself. The main theme, however, is the inclusiveness and the opportunity for ordinary consumers to make money from certain investment opportunities that would normally be out of their reach due to high costs. Now people can invest with smaller amounts of money.
As the Genius-Estates website says, investing in real estate is no longer just for professional or institutional investors - now anyone can qualify in the real estate market and start building wealth.
Industry Consolidation
What Genius Estates does goes beyond simply offering tokens to its clients; it actively brings the NTO sector under one roof. By shortening the often time-consuming process of finding different STOs and allowing customers to buy in one place, they simplify the investment process.
Moreover, it provides an opportunity to create passive income for clients who can invest in real estate, NFTs, air travel, sports, and so on. From buying investment vehicles to earning dividends and recommending friends and family, GENiUX allows its users to take full advantage of blockchain and reap the rewards as they do so.
The STO sector, as it develops, is likely to follow the same trajectory as the crypto industry as consumers will have single platforms to buy multi