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Infrastructure

STP

STP - "Standard Tokenization Protocol", the protocol for asset tokenization

Rating: 2.8

Official contacts
Location: N/A
Web-resources:   Website
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Product source tracking: N/A
Details Description Risks Full analysis Team

Detailed review

Stage of product development
Roadmap
May, 2019
STP Launch Pad Offering
September, 2019
First tokenization projects
February, 2020
Validators onboarding
June, 2020
Expansion to exchanges and other financial institutions
Token description
ICO date
01.06.2019 - 01.06.2019
Token price
N/A
Platform
N/A
Hard cap
8000000
Blockchain
STP
Token distribution date
N/A
Consensus method
PoS
Escrow
N/A
ICO currencies
USD , ETH , BTC
Bounty camping
N/A
Markets
N/A
Token functions
Reward for Validators, Reward for Staking, fee in the network, Voting vehicle
Risks
MARKET

- Digitilized compliance market seems to be narrow in the foreseeable future, and we expect professional services (not tokenized) to remain quite firm.

PRODUCT

- Long and unclear roadmap

- Lack of technical details

BUSINESS MODEL

- The model just gathers professionals in the network and motivate them to provide their compliance services for tokens. The models where the work is quite "manual" have not proved to be efficient especially when 

- The token price is only tied to the growth of users and validators, that depends on the growth of the quite narrow market

FINANCES

- Too large cap for IEO

TEAM

- The team is strong in management/finance BUT we found no strong tech specialist involved.

Full analysis
Market

The team sees the key application of its networks in ICO-like crowd sales. Tokens issued and sold on STP Network are designed to be compliant with all main regulatory frameworks. This means fewer risks for both investors and issuers - it does align with the trends on ICO market and the market "maturity". Globally it is expected the transactional cost to fall decreasing the cost of capital (and the required rate of return) on the market.

Other implications of the protocol are not unique (like tokenizations of traditional assets and some assets that are considered to be not divisible in ownership). Here STP enters a highly concentrated market with a long list of projects offering tokenization solutions. The only feature standing out is the orientation towards the "Standard" and fit with regulatory frameworks.

Generally, the idea of tokenization has been discussed for years in the blockchain community. Professional service companies also see assets tokenization as a good moving-forward idea: see Deloitte report.

Among the current clients are mentioned: aelf, Algorand, BAT, Decentraland, Hedera, Ontology, Theta, Zilliqa - it must be noted, that the status of partnerships and the details about services STP provided are not clear. We assume that the services include mainly consulting from the parent company - Block72.

Product

STP (Standard Tokenization Protocol) aims to be a standard setting the assets are tokenized and therefore issued, exchanged and transferred so that not to conflict with regulatory frameworks.

This Standard network will offer tokens built on-top, and Validators will ensure the match with regulatory requirements.

The project does not have technical information available, and the Whitepaper contains mainly ideas and the structure if the network. Moreover, the roadmap contains general milestones related rather to business - they seem to be rescheduled as the depend on other players. So, STP schedule the first issuance to September 2019, partnerships with validators and regulators to February 2020 and some wider application of STP in the financial world to 1H 2021.

Business model

The matching with regulatory frameworks is impossible to arrange automatically. Thus, Validators are considered to be a crucial part of the network - they will ensure Jurisdictional Compliance Issuer Compliance by checking adherence to the laws of the jurisdictions included in the code and by ensuring compliance requirements imposed by the issuer.

Initially, the committee will be set. It will include advisors, securities lawyers, and even regulators around the globe to track regulatory changes. Token holders have the right to vote for and against validators.

The model of the network implies the traditional way of incentives where validators are elected by token holders and rewarded for the proper work done.

Also, the networks will be sustained via PoS consensus algorithm.

Finances

The strange thing that must be noted that the project is powered by Block72 - the Korean firm involved in management consulting in the blockchain field. It is highly affiliated with GBIC fund that usually invests money in crypto projects (Hadron, Ankr, Taxa, Aergo, Perlin, Thunder, Libra, Eximchain, aelf, Theta, Nebulas, Mainframe, Icon and others)

30% of tokens will be sold on a private sale. As the team mentions: "We allocated $200,000 (at 1 STP = $0.01) to ~100 supporters"

Other funds will be attracted via IEO with the 8M USD cap projected in May.

The team indicate some widely known investors among "Strategic partners" like FBG, GBIC, NGC, Block VC, Alpha Coin fund.

Team

The website indicates 3 members of the team:

Minhui Chen - founder of GBIC (the fund investing in crypto projects. He established Block72 - the firm focused on management consulting in the blockchain field (also this firm is launching STP). 2 years in the industry.

Sinhae Lee - Stanford MBA, 4 years in McKinsey, was BD in Coin (a FinTech startup offering a smart payment device that stores multiple swipeable cards in one place, hit its $50,000 crowdfunding campaign goal in just under 40 minutes and crowdfunded 350K+units, acquired by Fitbit in 2016), was a BD in NerdWallet (a FinTech startup aimed at bringing clarity to consumer finance decisions with a $64 million Series A funding round). Partner in both GBIC and Block72.

Richard Lee - 3 years in finance, a partner in both GBIC and Block72.

The strong lack of technical specialists.

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