natsha watson
by on January 20, 2022
179 views

With the gaining popularity of blockchain technology, many crypto projects are coming out daily. Accordingly, there are occasions where investors get scammed due to decentralization. Entrepreneurs to build reliability go for Security token Offering development to raise funds for their project legally. With STO development, ventures can raise funds legally by tokenizing real assets legally. If you are looking for a fundraising model that benefits you as well as your investors with respect to security, STO is the key. Read further to know the fundamentals of Security Token Offering Development

What is STO Development?

There are many Fundraising models that aid crypto projects to get funds. Security Token Offering is one legal fundraising model that obeys the local regulations. In Security Token offering development, real-world assets like tangible assets and tradable assets are tokenized. The assets may include shares, dividends, land, gold, and others. STO is nothing but the combination of ICO and IPO. To make it simple, investors get a crypto token abiding by the security laws.

There are many types of security tokens, they are

  • Utility token
  • Equity token
  • Debt token
  • Reversed asset token

STO Development process

Here is a brief on how a Security Token Offering is developed

  • The first step is to analyze your business model and select the type of security token. Depending upon the business model the best asset or debt is tokenized
  • After this, the Token is developed on the Ethereum blockchain or any existing blockchains
  • With smart contracts, a dividend is given to every investor who buys a security token. This abides the legal laws and regulations and is also decentralized in nature
  • Now the investors can manage the funds, participate in the voting process and other legal rights given to them through the token

Wrap up
You can easily get into Security Token Development with the help of expert blockchain token developers. Just by discussing your business model with them, you can get a clear idea of your fundraising model. Few developers also offer STO marketing along with the development. 

Posted in: Technology
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