Even after a decade, cryptocurrencies are still receiving the same kind of love and popularity it got in the beginning. With Cryptocurrencies coming into existence, a majority of people are reaping its benefits. Cryptocurrencies (or popularly known as digital currencies) have become the money 2.0.
It all started with a bitcoin and today, more than 2,322 cryptocurrencies being traded in the crypto sphere. These digital currencies utilize cutting-edge cryptography to verify and secure transactions with the help of a technology known as Blockchain.
Blockchain is one of the most promising technologies that support cryptocurrencies, utility tokens as well as security tokens. The crypto assets offer hundreds of opportunities to bring transformation to the online financial marketplace.
So far so, ‘Security Token Offering’ has been the most searched keyword online. Clearly, it reflects that the future holds a lot of scope for security token offerings (STO).
Are security tokens the next big thing? What are the benefits of STOs? Can I launch a successful STO? This article will walk you through everything you need to know to launch a successful STO.
Scroll to unlock the doors to the future of finance.
First thing first
STO is an acronym for Security Token Offering. It refers to a type of token sale where new tokens are created and traded under regulated conditions.
Unlike ICOs, STOs are secure and reliable. The chances of fraud are nil. The key benefit of security tokens is the improved liquidity of physical assets which allows more and more users to trade them digitally on sto exchange platform.
These digital tokens are generally backed by real, physical assets such as high stocks, gold or something more valuable. The securities and exchange commission regulations of a security token vary according to the country.
Let’s move on to know what makes security tokens attractive to investors.
Benefits of STO
A security token is just like any other cryptocurrency that can pay shares, interest, generate interest or invests in any other asset to produce a profit. Some of the other advantages that security tokens offer are:
- Credibility
: STOs abide by all the rules and allow blockchain and cryptocurrencies to restore credibility.
- Improved traditional finance
: Unlike traditional securities, security token offerings facilitate their services at a lower cost.
- Computerized
: Security tokens are programmable and can be carried out by smart contracts.
- Open source
: Security tokens are available to anyone online unlike the traditional security that deals only with local individuals.
- Low market manipulation
: Free and open market, with fewer mediators, lessen the risk of market manipulation.
- High liquidity
: Investors would be able to liquidate their assets easily using specialized security exchanges offered by STOs. Besides, being borderless, the blockchain space turns the post STO liquidity greater than the token confined to a single jurisdiction.
Given the immeasurable benefits, if you are planning to create a successful STO, you need to market it well. A good STO marketing plan is something you need to adhere to in order to gain more returns and profits from it.
