How to Market a Security Token Offering in the United States?



  • Ever since the news threw light on the instances of fraudulent initial coin offerings (ICOs) that launched in 2017, marketing security token offering in the United States is almost equivalent to marketing uranium in Hiroshima. Although there are a lot of laws that prohibit false advertising and the entire security token industry is expected to prove what they are offering is true, the issues are allowed to advertise private investments through general advertising. Just like any legal system has its loopholes, the general advertising regulations and solicitations have not been clearly defined by the SEC. The requirements of general advertising can barely be understood as an ad that is printed on a newspaper or magazine or any other print medium, or broadcast over television or radio, and any meetings that have attendees who have expressed their explicit interest and have been chosen without any discrimination.

    Considering these parameters, we can look at a few advertising channels that can be used to market a security token offering in the United States.

    Some of them are

    • Social Media and Programmatic Advertising

    • Investor Relations Website

    • Messaging and content

    • Press releases and other media

    Social media

    Social media has been a breakthrough in the world of advertising, and crypto-space is not an exception to this revolution. Just like any other social media advertising strategy, there are a few aspects that need to be figured out. The target audience, the timeline of the promotions, the content and the measurement metrics need to be figured out before you embark on your social media advertising journey.

    While establishing your compliance with the SEC is required, it is not to be forgotten that social media and all other advertising platforms have their own set of advertising policies for which you will need to establish your compliance failing which you might not be able to run your ads in some of the most lucrative platforms.

    Website and landing page

    The website is the point of culmination for all of your marketing messages and the sections of the law mandate that the access to the website should not be restricted. Your website is the place where you can have a detailed communication about your STO. It is also to be noted that a landing page is a place where the uses have proactively chosen to visit and it is a layer of interest that can help communicates information at a greater depth. The landing page and the website need to be in line with your digital advertising efforts as it is the point of validation of the message that is being communicated on your ads.The website also serves to promote investor relations by communicating the advantages of investing in a security token. It has to be agreed that it is the investors who will fuel the lucrativeness of a security token.

    Messaging and content
    There are different interpretations of SEC and one of the interpretations is that the information regarding the business should be clear including the message that you would like to drive across for marketing purposes. The business, the financial condition, the products, and the services and any other details should be clearly mentioned in the message and the content that you drive across. It is a good practice not to promise any dividends are the expected price per share. If it does not work out as it is supposed to, this message can turn into an allegation of falsified information provided in advertising which might land you in a legal soup.

    Press releases
    Call it old gravy but press releases are still the order of the day when it comes to consuming authentic information. The content for press releases sound straight from the horse's mouth and be subtle in driving the marketing message across. Press releases play an important role in establishing the intensity of the legitimacy of your fundraising initiative and it is a good practice to have a legal counsel to handle the best practices of press releases. It is important to note that the people are more interested in learning about the stability of the company, the leadership team and the future plans. When it comes to press releases, it is the blandness of the facts that garnishes it into the perfect marketing message.

    When it comes to any product or service, it is a great thing to create one but what is more important is to market it. Thanks to the welcoming nature of the United States for anything that is new, security tokens might not be a challenge to market in the US. However, it is to be noted that the legal system and the extent of compliance that you need to establish is quite intense as well. If everything falls in place, then marketing would be a breeze to execute.

    A company that can create legally compliant security tokens and also market it in the United States is a rare Confluence of business attributes. Blockchain app factory takes care to not only create the tokens but also market them in the right places for you to reap the maximum benefits of your investment and also to make sure that your investors get the best returns as well.