TenX, the crypto wallet will airdrop new ERC-2- Coin called the TenX Token in lieu of PAY token, by March of 2019, according to a blog post on the official website.
Additionally, the new tokens would also have the features of the ERC-1462 standards for “security tokens” so as to meet the regulatory needs of the local governments.
However, the tough part of the new tokens is that the users holding their funds on trading exchanges will not be eligible for issuance. The rider of the new tokens is that the users will have to have first-control of the private key component of the public address.
Most importantly, listed countries are not eligible for the token and these include China and the United States. Moreover, holders of PAY tokens will have to ensure strict KYC processes to be eligible for new airdrop.
Why Security Tokens?
The move by TenX to offer Security Tokens Offerings (STOs) is not surprising. Lately, there has been an increase in the censorship by government across countries against the use of Initial Coin Offerings. ICOs are banned or not allowed in many of these countries because of repeated cases of fraud and illegal use of tokens to raise capital without collateral mechanisms, thereby putting innocent investors into hardship.
As an alternative many crypto startups have begun to explore more secured or valuable alternatives as a means to raise funds.
This new generation of ICOS, called Security Tokens Offerings, are typically portable devices which allow the authentication of the holder of the token electronically by use of different personal information. The service network can be accessed only by plugging the device or the security token by the holder.
As a key layer of security is the fact that these tokens are issued by the Security Token Services which do the background check, verification, and validation of the identity of the person in question. Hence, STOs are being used more extensively even for accessing bank accounts over sensor networks.
These secure tokens hold owners’ identities or cryptographic keys similar to that of bitcoin. The transparency, intrinsic value, and liquidity which STOs offer startups makes them very popular for projects such as TenX.
TenX has received negative comments with respect to the roadmap it is set to achieve. Many of its related projects such as the debit card Wavecrest is delayed since funds and support from VISA did not happen as planned.
Markets have welcomed the airdrop and set PAY prices climbing upwards by nearly 42% and in just 24 hours by 31%.