Due to the limited amount of information available, STP Network is quite a tough project to evaluate, however, it does have some stand out positives. These include the fact that the team are operating in a highly lucrative sector which has no problem attracting large amounts of revenue, and the team look set to conduct an IEO which should prove beneficial even if only in the short term. In addition, the presence of blockchain funds such as FBG Capital, NGC, Block VC, Alphabit, AlphaCoin Fund, and GBIC adds legitimacy to the project even though the behaviour of certain funds often leaves something to be desired. The team have already successfully raised $5 million, although, there have been some queries regarding private sale prices and pool allocations, and these issues lead to some of the concerns about the project. Firstly, as STP Network is based in Asia it’s more difficult to validate various aspects of the project and the team have only produced minimalistic outlines on aspects of their team, advisors, and legal/commercial approach.
The lack of information on their legal approach is more of a concern as the STO sector is a legal minefield and it may take years for regulatory clarity to develop as regulators across various jurisdictions take their time to lay down solid frameworks. At the same time, STP Network face strong competition from projects like tZERO and a host of other operators while traditional institutional players could also enter the scene at any time and command a large share of the market. With that said, STP Network does shine over its competitors in the sense that their focus will not only be on tokenizing STOs, but also IEOs, Compliant ICOs, and other formats of asset insurance.
Despite these issues, STP Network retains a strong core team and will look to leverage its close ties with Block72 who will be an early source of revenue in terms of helping to drum up business, while also paying the salaries of the STP team. Block72 has worked with projects such as Ontology, Basic Attention Token, Hedera Hashgraph, and Algorand, and its staff are experienced in a number of core aspects of running a blockchain business that will prove crucial to STP. The team are aiming to focus on the Asian market in the short term, and while the security token niche may be a slow burner, conducting an IEO may go some way to improving the project’s visibility and transparency with western audiences as well as increasing its attractiveness in the short term.
