Source: Crypto Briefing
Bittrex Exchange Looks To Standard Tokenization Protocol For IEO Takeoff
The IEO arms race is getting tighter: Bittrex International has just announced its next initial exchange offering, the Standard Tokenization Protocol. The continuing popularity of the crowdfunding model across multiple exchanges is proving to be a significant source of new capital for the cryptocurrency industry.
The Standard Tokenization Protocol, or STP, is a decentralized network that allows any asset to be tokenized. But unlike other token platforms, compliance, validation and KYC/AML functions are built directly into the blockchain—allowing issuers to guarantee that everyone holding their token is following the rules of their jurisdiction.
STP CEO Mike Chen announced that the protocol could unlock “trillions” of dollars in value, by making it easier to trade and issue tokens.
“The cost-prohibitive nature of traditional funding methods has led to a rapidly increasing demand for solutions that simplify asset offerings,” said Chen, in an announcement. “STP is in a unique position to save billions of dollars for companies and startups that are unable to attain funding due to the costs involved with hiring security lawyers, accountants, and investment banks.”
In addition, Chen suggested, the project would also help improve the crypto economy as a whole, by reducing illiquidity premiums and making it easier to move value.
“Initially, Block72 [digital asset investment bank] set out to support the crypto ecosystem by helping blockchain projects around the world,” he told Crypto Briefing. “[B]ut projects are only half the equation. With the launch of STP we now have the ability to fulfill the needs of crypto users all over the world, as well as projects.”
The sale will commence at 10 AM EDT on Tuesday, June 11th, continuing for 24 hours or until all tokens have been sold. Like some other recent IEO’s, the cap has been set relatively low compared to the excesses of the ICO model: STP hopes to raise $750,000 from the sale, with individual contributions capped at approximately $2,500. 75 million tokens have been allocated for the sale, with a maximum supply of 2 billion STPT.
Bittrex International has already launched several token sales, with mixed success. The first IEO, RAID, was cancelled after the termination of a key partnership, as Crypto Briefing reported. Another, Ocean Protocol, was considered a flop by some investors after the token price collapsed – although it has since recovered considerably.
But that doesn’t seem to bother the STP team. “We’re very excited to be working with them,” Chen told Crypto Briefing.“We decided to go with Bittrex International because their community, like ours, is global, and the platform allows users to purchase more tokens in comparison to other IEO platforms.”
The IEO follows two private sales for the STP project, which raised a total of $7 million from prominent VC’s like Neo Global Capital, BlockVC and Alphabit. The second round raised $2 million for STP.
“STP is a very promising project,” said Wayne Zhu, partner at NGC. “The Block72 team is a veteran in this space and they have helped many great projects realize and amplify their values.”
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