At the second stage, industry participants, including Stobox, have been focused on overcoming the structural barriers so that the industry could grow. Let's go through those barriers in more detail.The adoption of legislation in multiple countries
was the first milestone to accomplish. A lot of industry representatives and lobby groups in different countries worked together in favor of STO legislation to be adopted and regulatory guidance to be developed. Such groups consisted of various organizations and associations like Crypto Valley
and Global Digital Finance
, and private companies that were interested in moving the industry forward. Thanks to these efforts, a regulatory framework came into play. It enables storing securities in the digital form, protects investors, and is responsible for many other essential functions.
The second meaningful achievement was the rise of the service provider ecosystem and accumulation of expertise by them, which eventually led to a dramatic price reduction.
The first security token offerings could easily cost up to $500,000; today, the price of an average offering is 5 to 10 times cheaper thanks to the competition among service providers and the accumulation of expertise.
Stobox stepped into the game during this stage: though our company wasn't involved in the Proof of Concept stage, we took on when many people left the industry in disappointment. We had seen the long-term perspective over here, which made us start working on the comprehensive STO solution.