Security Token Offerings are a new introduction to the blockchain universe. But it is also predicted to be one of the most used technologies by businesses worldwide. A large number of businesses are already starting to implement STOs into their organizations as an effective method to raise funds.
Security tokens are similar to stocks that are offered by public companies. Like stocks, security tokens give their owners a right to ownership, to gain a share of profits, etc. And, these also pay dividends and it is possible to reinvest them.
In the equity token, the buyers have similar rights to your stockholders. So, they will also get dividend issues and have voting rights.
In reserve asset tokens, real-world items are traded in the form of tokens.
You can offer this type of tokens if you don’t want to give away voting rights or tokenize your reserve assets. These tokens are issued with a promise of payback.
In many ways, you could compare an STO to an ICO. However, these are not the same thing. When a person invests in an ICO, they are gaining access to a specific product or service. Investors need to wait for value appreciation if they need a profit. STOs, on the other hand, are monetary investments that investors make in hopes of getting gains from business operations and profits.
STOs are becoming more popular as there is more security in them for investors when compared to ICOs. STOs have to be legally compliant to be implemented. So, investors who are unsure about potential scams in ICOs will readily join in. However, because STOs are much stricter than ICOs, you need to thoroughly check if your business is ready for an STO before you start preparing to launch one.
The use of cryptocurrencies is not going away anytime soon. So, developing a custom crypto wallet will be a good long-term solution for your business. It would surely make global transactions much more reliable. So, spending some time to build a custom cryptocurrency wallet will be an investment rather than a cost.
People investing in STOs are investors who are interested in the possibility of future profits in the business. So, you need the best valuation and impressive track records for a successful funding round. For example, if your business is turning over around 10 million dollars, you’re ideal for a funding round in an STO.
Investors from all over the world participate in STOs. So, a global business with international customers has a better chance of bringing attention and building hype around an STO. If you are a high growth company, investors would especially be interested in investing money in your projects.
We are a leader in providing STO development services to innovative businesses interested in creating the future today. With years of experience, our team members are experts in both cryptocurrency development and security token development.
As a security token development company, we will take care of every step in your STO journey from development to launch. Ready to partner with us in creating an STO for your business? Then send us an inquiry.