Whatever the state of the market, the revolution will take place:
The Ethereum has introduced the notion of money incorporating features, these naturally came into competition with the geographic’s currencies (Dollar, Yen, Euro...). This revolution is underway since the Ethereum set the framework with solidity and provided the certification service transactions through the mining community (gas). Every market: gambling, advertising, real estate, automotive, communications, tourism, science, finance ... can be impacted and deeply changed by an exchange value (utility token) that incorporates calculation rules based on external data sources (oracles). This is all due to the innovation of Ethereum and it’s the main reason of the enthusiasm for utility tokens. These should meet the specific needs of their markets. If they succeed, they will then represent the volume of exchange necessary for the functioning of their sectors. Depending on the importance of those needs, it can represent huge market caps of several tens or even hundreds of billions of dollars. The utility tokens have not yet played their last card, but the number of places is limited...
About the current market:
The lack of professionals in the sector, the false promises, the exorbitant prices of the suppliers and the naivety of the investors are all factors which led for a time the market to fall. However, a new wave of professionals, developers, investors joined the blockchain community to bring their know-how and expertise to lead to the maturity of the sector and its mass adoption.
About the STO:
The security token market is a tremendous opportunity to revolutionize finance. However, the standards governing the representation of company shares by a token are still missing. Like the rules governing a public offering, they should be introduced as soon as possible because the fact that a share or financial security is represented by a token does not exempt this asset from complying with the rules in force on the pretext that the blockchain is a technical development.
Moreover, unlike utility tokens, the valuation of a security token fluctuates depending on the company’s value and not the real needs of the market. Therefore, it will become increasingly difficult for them to reach highs and they will remain linked to the valuation of the company. This opens the door to a wider range of projects, adventures to follow, opportunity gains, still it will always be a risky bet.
Finally, whether it's an investment in utility or security token, one should never forget to conduct a thorough study when investing money. One should make sure of the strength of the team and the real existence of a product and the number of followers on Twitter or Telegram is a bad indicator to determine the value of a project as it is easily falsifiable. Giving millions of dollars to a project that has just started is and will always be a risky gamble…
To the moon! Let’s build Rockets!