Security Token Issuance Platform
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If you have been following the blockchain industry for the past couple of years you would have heard of the term ICOs. These are financial investment opportunities that pulled a couple of billion dollars worth of funding for various projects.
Out of this, 82% of the companies became defunct with no cost to them and all losses for investors.
You know why?
The biggest problem ICOs has is its unregulated nature resulting in frauds, scams, and failures. To tackle this, SEC has declared ICOs as securities thereby, leading to a new trend called STOs aka Security Token Offerings.
Just like with ICOs, STOs allow investors to contribute to a project. However, the biggest difference is that STOs are highly regulated due to securitized nature.
Hence, the security token issuance platforms that issue these tokens must adhere to the rigorous rules.
Moreover, not all can participate in these offerings. The regulatory requirements are more strict in the case of unaccredited investors than an accredited investor and also must stringent KYC/AML verification prior to investment.
Security Token will revolutionize the financial segment and be ahead of the times with Blockchain App Factory.