It is not a difficult task for entrepreneurs to raise funds for their projects in 2019. Blockchain technology has opened a world of possibilities that enable startups to secure funds faster. Through a number of fundraising techniques such as Initial Coin Offering, Initial Exchange Offering, Equity Token Offering and more, the entrepreneur is spoilt for choice. Today, in this blog, we shall look at Security Token Offering.
Security Token Offering or STO is a financial instrument that is backed by real-world assets. Moreover, unlike other blockchain-based funding models, an STO gives the holder equity in the investment. Another factor that distinguishes an STO is that regulatory bodies recognize it.
There are a number of benefits for entrepreneurs to use STOs:
- These tokens comply with established regulations, thereby making them a credible investment opportunity.
- This offering model is backed by real-world assets that assure the investors of their investments.
- STOs are generally low-risk investments which make them attractive options for investors.
Blockchain App Factory is one of the top cryptocurrency and blockchain development companies. They offer a wide range of services that integrate the best market practices and technologies. Their team of experts includes talented developers who can create security token offering for fundraisers that are tailored to meet your business requirements.