In response to the continued SEC action and the failure of a large number of blockchain projects, an increasing number of projects that are seeking funding will issue security tokens. Investors will inevitably start seeking and demanding higher-quality projects, as the low hanging fruit will have been taken and barriers to entry will increase. In addition, security offerings tend to come with financial disclosure rules and other requirements that will act as a gatekeeper to projects that are simply not ready to be funded. The downside, of course, is that it will be harder for unknown players without independent access to funds to even attempt entry into the market.
Currently, there are no exchanges dedicated to security tokens, and, in fact, many existing exchanges do not wish to trade in such tokens in order to avoid security laws themselves. Once the security tokens become a larger part of the market, STO trading platforms will emerge or potentially be added to the existing stock-trading platforms of major exchanges and banks.