The blockchain is one of the most promising technologies at this time. It underpins crypto assets such as utility token and security tokens that extend a tremendous turn on the financial industry.
Why startups and business owners should step inside the Blockchain market and create their own security token? The reason is security tokens are completely credible, secure. Since Initial Coin Offerings ICOs have lost their value in recent days, STOs have gained popularity to raise funds for crowdfunding.
This blog provides you with the importance of Security Token Development.
What is STO and why is it needed for fundraising campaigns?
The security token is a new shape of financing that enables companies to raise funds from investors through issuing a fully-regulated “digital share” of its equity, assets or part of its revenue.
Initial coin offerings (ICOs) were all the rage in 2017, raising a massive US$5.6 billion, but this year saw the emergence of the security token offerings (STOs), a market that’s predicted to be worth some US$10 trillion by 2020. Coinshares last Thursday, said that a multi-billion dollar STO market would be in 2019.
While STOs still represent a tiny fraction of tokenization transactions today, this will be a rapidly expanding segment moving into 2019 and beyond. Not only will STOs overtake ICOs as a fundraising mechanism, but STOs will also ultimately overtake traditional fundraising arrangements as well.
Check out the extraordinary benefits included in our STO Development:
- Fractionalization of larger assets
- Increase in liquidity
- SEC laws complaint
- Lower issuance fees
- The global capital investment pool
- Greater market efficiency.
Future of Security token offering:
Having said that, security tokens have the potential to become the go-to form of funding for more established startups and companies that want to tokenize their securities offering instead of listing shares on a stock exchange.
Security ICOs will likely become a real competitor to traditional IPOs as the costs for an ICO remain cheaper and as more investors realize the advantages of digital tokens over “real shares”.
Why do you need to launch a security token offering as your revenue model?
Recently, ‘utility’ tokens may be considered securities. It relies on the jurisdiction and its intrinsic characteristics and associated rights. A ‘true’ utility token represents future access rights to a company’s product and/or service, whereas a security token is backed by an asset that confers rights to income, assets and/or dividends of a company, among others. However, so many companies are discovering that a successful security token offerings (STO) website instantly.
How to launch an STO?
The Security Token Offering launch Process can be categorized into the following stages:
- Preparation
In this stage, you need to come up with a unique set of an idea for your STO Development. Since it is important to engage a huge set of investors, make sure your project stands out from the crowd.
Secondly, you need to know the regulations of the Security Token Offering. As each country has its own regulation, make sure you know the regulations of the country before you launch STO.
Thirdly, you should choose the best STO platform to launch your security token offerings. Draft an STO Whitepaper on this and make sure it is a completely engaging one.
You need to gather a team of experts from a superfine solution provider like ICOCLONE. Now you can develop an STO Marketing website to bring in a huge set of investors for your project.
- Pre-STO
You can start introducing Security Token Offerings to the market by listing on popular websites. Once your STOs have become familiar with your target audience, you can partner cryptocurrency exchanges to list your security tokens.
- STO for accredited investors
This is the main stage in Security Token Offering STO Development. You can enter the crowd sale stage here.
- Post-STO
To make sure the launch of STO Development a successful one, it is crucial to building a product that supports the security token.
Security Tokens can be the future of fundraising schemes. Launching STO’s can bring in huge dividends to your business! Launch the STO platform with us!
Key Considerations When Launching a Security Token Offering:
- Type of interest being tokenized
- Place of incorporation
- Corporate secure & governance
- AML/KYC
- Tokenization Platform
- Banking
- Exchanges/ secondary trading
- Tracking secondary market trades and maintaining cap table
- Token Custody
- Securities Regulations
- Foreign securities regulations
- Tax consequences
- Marketing and press relations
- Time & Budget
Does your business need a security token offering service?
ICOCLONE is a leading Security token Development company, with broad experience in token issuance; we endeavor to help businesses, as well as their Clients issue security tokens that are audited. We pride ourselves as forerunners in the arena of security token platform development.
Tokens developed on these platforms can enable quicker transactions at extremely low prices. To raise funds for your business, it is important to make use of Security Token Offering.
Hire our blockchain developers for your Business Model:
Every business needs professionals to make their business transactions in the most productive, flawless & safe manner. That’s why be it a simple application or a complex business solution, we help you with all kinds of Token development services that your business needs such as ledger transaction app and digital cash systems. We have developed Robust, cutting-edge and state of the art security token platform for token development and management.
Our full-stack blockchain developers provide quick deployment of our Blockchain development projects and reliable support for ongoing projects. Hence, when you are looking for a specific requirement in your niche our Blockchain dedicated developers help you to fulfill your requirements.
