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...
Codezeros is a top Blockchain consultancy firm which develops Blockchain apps. Blockchain technology can be applied to various sectors like in banking, finance, healthcare, insurance, supply chain, enterprise, identity infrastructures, politics, election, voting and in cryptocurrency. Our blockchain web and mobile apps are scalable, secured and trustworthy.