Huobi CFO: STO would Become the Mainstream in 3 to 4 Years
Earlier this month, the Singapore-headquartered world leading cryptocurrency exchange Huobi has announced that they have completed the stock acquisition of Pantronics Holdings Limited.
The 600-Million Hong Kong stock acquisition causes an immediate sensation in within the crypto community. Chris Lee, CEO of Huobi Group describes his emotions as “We have come to the perfect moment to go to the church and I can hear the voice of the piano” in an interview with Huoxun Finance.
Lee demonstrated some details of the acquisition case and he also mentioned the on of the hottest issue affecting crypto market today: the securities token offering (STO).
“The STO will becomes a mainstream fund-raising method in the next 3 to 4 years,” Li commented.
Li indicated that, the traditional IPO requires a very high standard and is very expensive and time consuming; while the ICO is too risk due to both the financial and regulation issues. As thus, people are looking for an advanced peer to peer capital raising method.
STO is sitting in the middle of ICO and IPO. On one hand it reduce the time of the whole process, so it is more effective and achievable than IPO; on the other hand, it is a compliance fund raising method acknowledged by the SEC, so it is much safer than ICO. It can be sold to some accredited investors. In addition, its has much more flexibility and is much cheaper than IPO.
Li said that security Token has two main characteristics,one is the securitization of a token, and the second is the Asset Backed Token (ABT).
“Time will prove everything, this (STO) is indeed a big opportunity, as I believe, Asset Backed Tokenization, which is the digital assets backed by physical assets, have the potential to drive the entire crypto industry to a higher level. There will be a place for STO in Hong Kong’s capital market one day.”