By Wichit Chaitrong
Poramin Insom, founder and CEO of Satang Corporation, yesterday said his company would issue the STO by the end of this year or early next year to raise funds from investors worldwide.
Investors holding STOs would be like shareholders of listed companies; they could earn dividends should the firm generate profits.
Poramin was optimistic that investors would welcome it. “Unlike ICO [initial coin offering], STO will provide a more secure investment, as they will have rights similar to shareholders of listed companies,” he said.
He expected investors to like the STO as compared to ICOs, which guaranteed nothing.
STOs have evolved from ICOs, as issuers respond to the changing market demand and associated risks.
He admitted that the current market is not on his side, as the values of major cryptocurrencies have been falling sharply. For example, bitcoin is now trading at slightly over US$3,000 (Bt96,000), down from its peak of about $20,000 last year.
Trade wars, regulations and speculation have affected the valuations of digital currencies, he said.
Poramin is also the developer of Zcoin, a cryptocurrency that now trades at Bt160, down from its peak of Bt5,000 per coin.
He, however, was optimistic that the markets for digital currencies would expand if the ecosystem of digital assets is developed.
He said his company plans to develop Satang App, an e-wallet, which could allow consumers to make payments via Promt-pay infrastructure. The application will convert cryptocurrencies in the e-wallet to baht and shop owners will get baht.
The company also plans to promote a “Satang Shop”, which will accept cryptocurrency payments.
“We will start at tourist sites such as Phuket and Pattaya,” he said.
Satang Corporation will rebrand its exchange market for trading cryptocurrency to “Satang Pro” from the current TDAX.
TDAX is the second largest exchange in Thailand with daily trade volumes of cryptocurrencies estimated at Bt 100 million and about 30,000 investors trading daily, he said.
He said he had developed a trial trading tool for new investors who want to enter the market, in a bid to expand the number of investors.
The number of investors trading in cryptocurrencies such as bitcoin via five exchanges in Thailand is estimated to be 300,000 and trade volume is currently at over Bt 200 million daily, down from a peak of Bt 1billion.