How can Security Token Offering be beneficial than other crypto crowdfunding methods?
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Raising funds is one method that you can trust to take your business to the next level. Yet, you have to find the best method to make it more efficient. For that, you will have to do it in the crypto way. Yes, crypto has become very popular around the world. Unlike fiat, you will not be expecting investors from a particular geographic location with only one currency. Crypto brings investors from all over the world, making your crowdfunding efficient. But, there are many other methods in crypto crowdfunding.
Security token offering is one one of the crypto crowdfunding methods by issuing security tokens in return for the funds to the investors. In simple terms, we can say that STO is a regulated ICO. Unlike ICO, It deals only with security tokens. A security token can offer benefits to the investor rather than a utility. STOs need to be compliant with several government laws to get approved. Security Tokens are classified as securities and surety assets, so they are bound by the security rule of the country they’re operating in.
While launching an STO, security tokens are developed by real-time assets and contain all the possession information. It provides high security to investors and reduces the chance of token issuers.
Benefits of launching an STO
- Only accessible to properly authenticated investors.
- Handle real assets and comply with government regulations, which makes it more trustworthy.
- Offers high security, which makes it ideal for long term investment
- Better market acceptance than ICO and IEO
- Access to global markets.
- Efficiency and scalability.
- Launching STO requires the intervention of SEC, It’ll maintain credibility among the investors.
- Token Sale - Security token issuer takes care of the Fundraising Process.
- Marketing & Advertising - The team behind the project does the marketing 7 advertising.
- Transactions - Take place on the issuer’s website.
- Trust - High trust levels since the tokens have intrinsic value/represent real assets.
- Regulation - Regulated in terms of Security Exchange Commission (SEC)
These are the major benefits of STO. As a part of launching your STO, you have to create security tokens. You will be requiring a team of Blockchain developers and a team of Blockchain experts to discuss your fundraising requirements. So, to reduce the loads you can hire developers from a trustworthy STO development company. Out of the many companies in the market, a trusted company is Zab technologies. They are one of the Prominent STO Development companies that offer the best services for STO development.
If you are interested in launching a crypto fundraising by Security Token Offering, then feel free to connect with their blockchain experts directly via,