Why Choose Security Token Offering (STO) For Crypto Crowdfunding?
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For many centuries crowdfunding has been the major source to develop businesses. Crowdfunding is the reason for many successful businesses out there. But, it is not applicable in many cases, especially in recent times. There are many ways where you or your investors might be subjected to scam. Yes, the scam rates surrounding crowdfunding have increased way more in recent times. This reason steals the investor’s trust bringing down the crowdfunding efficiency. So how will you raise funds without any hassle?
Crypto has become the recent buzz around the world. So why not make use of this to raise funds? This method is based on the blockchain platform. These blockchains are the most secure place to store pieces of information. It can never lead to a scam. So going with crypto fundraising will be the most recommendable option.
Security Token Offering
A security token offering is a crypto fundraising concept where entrepreneurs can raise funds from accredited investors all over the world. Security tokens are constrained to the federal laws and guidelines of the respective governments, it gives more credibility and security to the investors as well as the token issuer. Security tokens can be related and are backed by real-world asset values.
Why choose STO?
Apart from scam resistance, there are many other advantages to launching STO.
- Lower upfront investment than IPO, STO, is much cheaper to Switch out considering STO cut all middlemen and brokerages.
- STOs are digital assets and could be used to divide consequential assets into smaller assets. It makes it Secure for an investor to have fractional ownership of the product.
- STO being fully regulated by the governing body assures the security of the investor. The trust of the investor about their asset’s security attracts more investors to the project.
- STO is Much Safer Than ICO
- Intrinsic value.
- More legitimacy.
- More transparency.
- More liquidity.
We have discussed the advantages of STO. But launching an STO is not going to be an easy task. You may have to work on the technical part and the business part. So, to reduce the loads, you can hire a trustworthy STO development company. Out of the many companies in the market, a trusted company is Zab technologies. It is a prominent STO Development company that offers the best services for STO development.
If you are interested in doing business with them, then feel free to connect with their business experts directly via,