Why startups and business owners should step inside the Blockchain market and create their own security token? 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.
What is STO and why is 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.
The exciting 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 you need to a 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 successfully launching a security token offering (STO) website instantly.
How to launch STO?
The Security Token Offering launch Process can be categorized into the following stages:
- STO for accredited investors
Key Considerations When Launching a Security Token Offering
- Type of interest being tokenized
- Place of incorporation
- Corporate secure & governance
- Tokenization Platform
- 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 STO 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 transaction at extremely low prices.
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.