Is the Future of Fundraising Security Tokens?

Before commencing the STO development process, knowing the tokens' basic working and benefits is essential.

 

In simple terms, security tokens are financial securities backed by assets, revenue, or shares offered to investors.

 

The drawbacks seen in ICOs have led to the evolution of STOs. Understanding its significance, many companies have dived into the business of token development to build a highly reliable and trustworthy investment ecosystem.

 

Future of Security Tokens

STO Features

Two types of tokens are widely known and used. They are utility tokens and security tokens. 

 

Utility tokens serve the purpose of funding for an underlying project from the investors, and they are mostly fraud and unregulated.

 

Security tokens represent a real-time asset value or shares of the company or shareholder profit. They are highly regulated and offer numerous benefits to investors, project holders, or token issuing companies.

 

STO = ICO + Legal regulation.

 

These benefits include global trading capability, 24/7 trading, asset interoperability, automated compliance, fractional ownership, and high liquidity.

 

STO Development Cycle

 

There is a list of steps to be followed in order to launch an STO. However, given below is the primary execution procedure.

 

Identification

The first step involves identifying the securities it will tokenize and offer to investors during the STO phase.

 

Risk Assessment

In this stage, carry out a risk assessment to understand the risk involved in the STO process to ensure transparency and accountability.

 

Promotion

In this phase, a highly skilled marketing team will promote and build STO pitching to the investors.

 

Token Creation 

At this particular stage, security tokens are created that are supposed to be used during the STO phase. Blockchain platform/network is used to build these tokens.

 

STO Launch

Offering the security tokens to both private and institutional investors takes place.

 

Listing 

At this step, the investors holding the security tokens offered by the ecosystem can trade them on multiple exchanges.

 

What do we do?

 

Want to develop tokens for your project? You are in the right place..

 

A token development company like us can provide unrivaled end-to-end solutions that can increase the possibilities of your project receiving funds.

 

Blockchain Firm delivers Cryptocurrency Development Services to make crowdfunding more successful. We have the best-in-class industry experience, allowing us to provide stable and distinctive tokens.