natsha watson
by on January 10, 2022

Crowdfunding has been the key to success for crypto projects these days. It is important for a crypto project to select a crowdfunding model that would suit better for their business. There are a number of crowdfunding models that aid the project in different ways. There is an Initial coin Offering, Initial DEX Offering, Initial Exchange Offering, and many more. One model that not only aids in the funds but also abides the local regulatory governance is Security Token Offering Development.

Everything you need to know about STO Development

In an initial coin offering, a token or a currency is offered to the public to invest in. The investors can invest in to buy these tokens in hope that this token or currency will give high returns in the future. But the main shortcoming of this model is that there were scams and frauds that came out in the name of ICO tokens. To overcome this Security token offering was introduced. It made projects start their project with Security Token offering development and investors started investing without any fear of scams.

In STO development, the tokens are backed up by assets. That is, they tokenize assets thus providing security for their investments. These tokens represent a part or share of the company as security. The contracts are registered in the blockchain which makes it more secure. In simple words, STO tokens are nothing but ICO following the local security law.

Wrap up

This high-security character of STO development not only helps with the crowdfunding process but also creates trust among potential investors. If you are looking for a perfect crowdfunding model for your crypto project, go with Security Token offering development. Discuss your business model with an expert and start your journey now. 

Posted in: Technology
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