What is Stobox? Explained for beginners by Digimagg

Understanding Stobox

Stobox is a blockchain solutions provider focusing on creating products and services for issuing, managing, and trading compliant crypto tokens. They brand themselves as a "turnkey tokenization provider," offering customized, legally compliant token issuance services. Founded by Gene Deyev, Ross Shemeliak, and Borys Pikalov, the project has been active for five years, as per its official website.

Stobox offers a range of services and products tailored to the digital asset ecosystem:

Services

• Consulting for security token offerings (STO) and real-world asset (RWA) tokenization.
• Legal consulting for compliant and regulated tokenization.
• Digital assets advisory services covering technical implementation, utility token model assessment, token financial modeling, and DeFi guidance.

Products

• DS dashboard: A software enabling businesses to create and manage STOs, enforce compliance rules, and monitor assets.
• Soulbound ID: Non-transferable tokens representing personal information on the blockchain, granting access to Stobox's digital asset ecosystem via single sign-on.
• DS swap: An EVM-compatible decentralized exchange (DEX) facilitating security token trading. Issuers can manage liquidity pools and automated market-making (AMM) functions.

Stobox offers two tokens

• Stobox Security token (STBX)
• Stobox token (STBU)

These tokens will be detailed further later.

Understanding the Stobox Security Token (STBX)

The Stobox Security token represents ownership in Stobox Holdings Limited, with each token backed by a Class-A share of the company at a 1:1 ratio. Running on the Ethereum blockchain, the maximum supply of STBX tokens is currently capped at 10 million, with 51 holders according to Etherscan data. Presently, STBX tokens are not purchasable on the open market or Ethereum-based DEX like Uniswap. Stobox aims to enable secondary market trading of STBX tokens on DS Swap in the future.

Examples of real-World asset tokenization by Stobox

Stobox has facilitated the tokenization of real-world assets for businesses. For instance, in 2023, they assisted Candela, a luxury residential real estate project in Mexico, in launching the Candela token, enabling fractional ownership with a minimum investment of 5,000 USDC. Stobox states that token holders can enjoy perks like property discounts, event access, and rental returns. Similarly, in 2022, Stobox organized an STO through the DS Dashboard for Farmland Assets, a US-based agricultural company seeking to raise up to $30 million for expanding specialty crop cultivation. This allowed Farmland Assets to offer their security tokens to investors globally.

Tokenomics of STBU

Here's a breakdown of the tokenomics for the STBU token:

• Multi-blockchain presence: The STBU token operates across three different blockchains – Ethereum, BNB Chain, and Polygon.
• Maximum supply: The maximum supply of STBU tokens is set at 100 million tokens.
• Circulating supply: As of December 25, 2023, the circulating supply of STBU tokens is reported to be 89.87 million tokens.
• Market capitalization: As of December 25, 2023, the market capitalization of STBU token was valued at $10.91 million, positioning it as the 934th largest cryptocurrency globally.
• All-time high: The STBU token achieved its all-time high price of $0.501 on November 10, 2021.
• Current trading status: Presently, the STBU token is trading at $0.12, marking a 76% decline from its peak value at the time of writing.

Understanding the Stobox Token (STBU)

The Stobox token, also known as STBU, is a utility token designed to provide advantages and enhanced features to users of Stobox offerings. Its uses include:

• Subscriptions: STBU tokens are utilized for payment towards subscription services for Stobox products.
• Compliance: STBU tokens serve the purpose of facilitating wallet and transaction compliance processes.
• DS Swap: STBU tokens are employed for covering gas fees on the DS Swap decentralized exchange.
• Incentives: Holders of STBU tokens gain access to discounts and rewards within the Stobox ecosystem.

Prospects for tokenizing Real-World Assets (RWA)

RWA tokenization has emerged as a prominent narrative in the crypto market, gathering increasing attention and momentum. Many insiders within the crypto industry argue that there's growing global recognition of the advantages of representing real-world assets, such as real estate, fine art, credit, treasury bonds, and precious metals, through digital tokens on blockchain platforms.

An encouraging trend is observed wherein traditional financial institutions are embracing blockchain technology to harness benefits like fractionalized ownership, decentralized trading, and enhanced transparency in property rights.

Tokenization facilitates the division of ownership rights for illiquid assets like real estate and fine art into numerous digital tokens. This process not only lowers barriers to entry for small investors but also enables seamless and instantaneous trading of these illiquid assets in tokenized form on blockchains.

For intangible assets like copyrights, trademarks, and patents, tokenization ensures immutable storage and permissionless verification of intellectual property on blockchains.

Additionally, the tokenization of credit markets allows bond issuers to access a broader audience unrestricted by geographical limitations.

The potential of RWA tokenization is evident, reflected in the significant interest it has garnered in 2023, with a remarkable growth of over 5500% during that year.

Furthermore, RWA tokenization was highlighted as one of the top five crypto market trends and technologies to monitor closely in 2024.