Great question Gary. Velocity has to do with the frequency in which assets change hands. The federal reserve has an eloquent method of determining economic growth with monetary velocity as the primary contributer towards increased output.
Tying this to tokenized assets, I think there is great potential for companies to unlock tremendous amounts of wealth by tying equity to a unity of value on a decentralized ledger (aka a token), and that equity can also be integrated into that company’s ecosystem as a reliable method of payment.
To illistrate what this would look like in real life, if Amazon were to issue equity onto a blockchain ecosystem, and those “Zon” equity tokens can also be used a method of payment on Amazon, the velocity/demand for those tokens will be tied to Amazon’s total transactional economy size in addition to speculation on Amazon’s overall profitability.
As the transactional economy size will virtually always exceed speculation on profitability, there may be great potential to create excetionally large ledgers and thus access to more capital.
While this is the potential I see for security tokens, very few if any ICOs have acheived this goal of having their tokens utilized in their ecosystem. Almost all current velocity for token’s are investors speculating on the token’s price appreciation.
I do think this will change as the industry matures and as great companies such as Pegasus Fintech, BlockCrunch, and MLG Blockchain work to bring winning projects into the industry :)