In the coming months, projects may start issuing the first crop of cryptographic “security tokens”, a form of digital assets that also has the qualities of a security. Trading those assets will require a new generation of exchanges.
Security tokens will have the qualities of traditional financial assets, while existing on the network of distributed digital assets, such as Ethereum, NEO, Stellar, EOS, or others. After a proliferation of utility tokens, which were haphazardly listed on traditional or decentralized exchanges, security tokens will be much more careful about reaching investors and traders.
Extauri (www.extauri.com), the upcoming European exchange, has been thoughtful about those limitations, and plans ahead for successful, newly completed Security Token Offerings (STOs). The platform, scheduled to launch at the beginning of 2019, will offer opportunities for security token providers that have already completed their distribution, to list their assets on a fully compliant marketplace.
As part of building a security token ecosystem, Extauri will also perform its own token sale for the TAURI token, possibly during Q1, 2019.
Extauri will end up being one of the all-encompassing marketplaces, with multiple asset classes. Beyond cryptocurrency tokens, Extauri will be open to trading fiat currency, and traditional banking products such as stocks, bonds, and ETFs. For anyone attempting to use the platform, the easy access to trading will mean a democratized chance for testing out any market. Extauri offers a full fiat gateway for the assets offered, meaning crypto-based assets will always be liquid. The freedom to deposit and withdraw at any time are key to the good reputation of any exchange, especially after 2018 saw many markets lock up their wallets, essentially keeping users from realizing gains.
Extauri is also going through the acquisition of a Multilateral Trading Facility (MTF) license, which would allow third-party exchanges to trade assets on the platform, through a specially created Meta exchange.
The fully compliant status of Extauri means none of the security tokens on offer would be threatened by an unexpected investigation or a freeze of trading. Thus, traders on Extauri would be even more reassured of their assets preserving value, and trading fairly, with high liquidity.
Extauri also meets the most advanced security concerns, ensuring the tokens and balances are held safely. Through an in-house developer team, Extauri ensures the quality and safety of its trading and storage products. Most importantly, Extauri offers MyAdmin Wallet, a unique wallet that combines the convenience of easy trading with the ultimate security. The user holds the private keys to any MyAdmin Wallet, meaning the exchange, or a hacker, can never make a centralized attempt to steal or disturb funds.
In the last quarter of 2018, digital assets suffered a series of crises, which trading experts have labeled a “capitulation event”. Instead of a year-end rally, previously high-flying tokens lost more than 90% of their value. The drop in Bitcoin prices has led to additional distrust of digital assets. However, during the lengthy bear market, security tokens were seen as the answer to ensuring that digital assets represented real-world value. Tokenization is a trend just picking up in the past few months, and Extauri will soon be operational, fully able to reap the benefits of the next trend in cryptocurrency markets.