Security Token Offer (STO) - Reach investors globally

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Bitcoin, Ethereum and ICO. That’s the chronological list of successful blockchain products that emerged in the last 10 years.

And if you are wondering what comes next, we already know the answer: Security Token Offering (STO).

Although ICO has been the talk of the town in the past two years, with thousands of offerings emerging online, a lot of them proved to be schemes. Because of that, investors started to become skeptical about the blockchain-based crowdfunding.

To surpass this issue, STO was proposed as a new model of raising funds for distributed ledger ventures. The innovative offering is a better and more secure option because it is built under SEC regulations.

What is an STO?

Just like an Initial Coin Offering (ICO), an STO raises funds by selling tokens. But that’s where the similarities end.

When a person invests his/her money in an ICO, they are only a coin holder. But with a security token in hand, the investor also becomes part owner of the enterprise.

They are empowered with dividends, profit sharing, equity and/or buy-back rights. We can say that an STO is more equivalent to an IPO.

Why go for an STO?

As mentioned, STOs are subject to federal laws and regulations - KYC/AML checks for example. So, for that reason only, the offering is a great option for everyone looking to enter the blockchain world, as a company or as an investor.

Another very appealing benefit of an STO is the possibility to raise global capital.

Companies wanting to go public often suffer from geographical barriers. However, security token offerings are not limited by that. No matter the size of your enterprise, you can present the offering to investors all around the world.

And, no less important, STOs are bringing the liquidity that the blockchain world has been craving for years. Not only is it an advantage for the investors, but also for those who want to liquify their assets such as art or real-estate.

Conclusion

There is no doubt Security Token Offering is here to stay. This is the best solution for companies to go public and reach a wider set of investors.

If you want to take your business into the blockchain world, Blockchain App Factory is the way to go. Our company offers the most complete and reliable Security token launching services, from developing the token, to launch and market it.