Skip to main content

Why Security Token Offering STO is a good choice for a Blockchain Project?

Security Token Offering is a popular fundraising strategy that is adopted by most startups. As the former Initial Coin Offering strategy has lost its value in recent days, startups and investors were looking for a popular scheme that can overcome all these issues. This blog discusses the importance of security token offerings in the cryptocurrency world.

What is Security Token Offering?

A Security Token Offering is a scheme where a startup/ company offers security tokens in exchange for capital investment in their company. This can mutually be beneficial for both ends.

With a security token, the investor gains legal rights since only qualified tokens under specific laws such as voting are taken into consideration. But in the case of ICO, the tokens aren’t subjected to any such qualifications.

Hence most of the STOs are now considered as ICOs with some regulations under SEC. Security Token Offering involved Howey Test where the tokens have to satisfy certain eligibility criteria.



Importance of Security Token Offerings:

For the year 2019, there was around 130% growth when compared to the previous year 2018. The reason was the increased pressure from regulators to ensure compliance with security norms.

When comparing Security Token Offering with other fundraising mechanisms such as IPO, ICO, there has been a huge set of benefits noticed.

How to launch an STO successfully?

  • Pre Issuance Platform
  • Token Issuance Phase
  • Token Management

If you are looking to start STO at minimal cost, we people at Codezeros are available to assist you! We have a good set of experience with developing Security Tokens and bring in customizable STO Software for your business!

Get in touch with us instantly to launch your dream Security Token Offerings!

Talk to our Experts - https://bit.ly/3A6uXrM

Comments

Popular posts from this blog

Smart Contract Development Company in Washington

Smart Contracts are now essential to any blockchain-based business. The self-executing digital contract is the key to automate processes, transactions, and agreements, helping to reduce costs, hence security and end the very confusing and not reliable paperwork. Smart contracts are automated digital contracts that enable highly-secure and self-executing agreements to be formulated. They solve many issues faced in traditional contracts such as lengthy paperwork, the need for third-party intervention, and huge costs. Codezeros is the Smart Contract Development Company with the best solutions for your enterprise. Up to date with every new technology and innovation in the blockchain world. Our team of experts is focused on building an outstanding computer-based protocol. Customizable for any type of industry, the digital contract doesn’t need a middleman to ensure that all the parties involved are performing their part. Once all the rules and conditions are settled, its base algor

Security Token Offering Services(STO) | Codezeros

Stay at the top of growth wave with quality token development. Security tokens are just a more flexible version of regular securities, only more efficient. They are cryptographic tokens that pay interest and dividends or share profits to token holders based on an asset like shares, real estate, or bonds. Some of the major benefits of opting for STO development are as follows: Traded as securities Credibility Low Fees Decentralized assets remain decentralized An enterprise or a startup will sell its digital asset- its cryptocurrency, to its investors and whosoever, supports the project financially. This sale of their cryptocurrency or a fraction of it will happen in a pre-decided currency form of USD, Euros, or a cryptocurrency like bitcoin. This process will be followed by whitepaper creation and a pitch deck. Later on, after Tokenomics of the cryptocurrency and smart contracts, a pre-STO landing page is created. This process comprises of STO solutions that we provide. We

Craft Your Projects With Golang Web Development

When it comes to developing the best suited products, we at Codezeros have refined our abilities in the art of the Golang programming language. Our team is highly skilled in providing solutions that can meet all your requirements, whether you seek business-ready applications or next-gen dApps.  In order to align with your project needs, our blockchain specialists, full-stack engineers, and UX designers work diligently, offering the best  Golang web development   services. About Golang Go or Golang, was created by a group of individuals at Google, including Robert Griesemer, Rob Pike, and Ken Thompson. It is among the best and most advanced programming languages that has shockingly become popular. One of the major reasons for its wide usability by the developers is its simplicity and readability. Although it offers less features than other languages like C++, the first priority is efficiency and straightforwardness.  Go draws inspiration from Erlang to incorporate concurrency and functi