Openfinance might be delisting all the tokens on its platform if the issuers fail to act accordingly. In a recent report, the leading Security tokens platform warned about removing and suspending the trading of tokens, due to less or no transaction with them.
Low trading of Security tokens
According to the company, the token transactions on its platform have decreased to the point where it could no longer cover the cost of operation. Hence, it threatens to stop trading of these tokens in the next month, sans issuers compliance to its term.
Entities and individuals, who issued their tokens on the platform were asked to come up with new contracts, to enable the company to meet up with the cost of operations. The existing tokens will be delisted at exactly May 21, if the issuers do not provide the fees.
However, non-tokenized securities will still be available for trading, according to the email sent to users.
The Securities market could fall short
In response to this development, the CEO at Security Token Market, Kyle Sonlin, indicated that the actions could have an impact on the security markets. Sonlin said the industry would note losses, especially in the United States, if Openfinance delists the Security tokens.
However, the CEO went further to say that the tokens can still be transferred to other platforms besides being self-custodial. This capability remains a credit to the technology behind Security tokens, Sonlin added.
In the email, Openfinance assured that there wouldn’t be disorders in the ownership of tokens if the issuers finally decide to move their tokens to other platforms for trading. Also, users can transfer their tokens to buyers, as well as sellers. They can equally keep up with the tokenized records via their digital wallets.
The company’s alternative trading system was reportedly launched in the last two years. It was available for the US accredited investors and other countries for buying and trading Security tokens.