What is an STO?
Security Token Offering (STO) is a type of fundraising that is performed with a company offering tokenized securities. Essentially, Security Tokens provide investors with an array of financial rights that are coded in smart contracts, with underlying tokens traded on the blockchain.
Generally, undertaking an STO venture is a daring move. It incorporates creation and distribution of digital assets on a secure internet hub. The success of the company directly dictates the value of the asset which is traded on exchanges.
How Do STOs Differ from ICOs?
STOs have regularly been linked with often controversial ICOs. But the truth is far from it. Unlike ICOs, tokens offered during an STO are always backed by some form of tangible asset. This means that when investors invest in an STO, the received tokens bear real value which cannot depreciate unprecedentedly.
This is the exact opposite of ICO tokens or coins, where most of them lost all their value and left investors in deep losses. STOs are a means to prevent investors from falling prey to fraudulent business activities.
Due to the fact that STOs are classed as securities, they are also subject to securities regulations of the country they are launched in and the countries of their investors.
Benefits of STO
For the company:
- Adheres to security laws
- No need of middlemen
- Increased liquidity
- Lower cost of operation
- Tokens have real value
- Token price is assessable
- Minimal investment risks
- Negligible chances of fraud
Security Token Offering Services
TheBlockBox is a leading STO development company enabling entrepreneurs and companies to produce sustainable business success, by providing value-driven blockchain services and solutions. We specialize in delivering STO launch services, built upon next-generation disruptive technologies. Our team of agile blockchain development experts provides smart contract development services in Solidity, Stellar, Quorum, Hyperledger Fabric, Lysk and EOS.
Our cutting-edge development processes have been carefully devised to handle each stage robustly and with full accordance to your specifications.
- Generate list of business requirements essential for comprehensive analysis and token model creation
- Preparing a conceptual, logical and sequential blockchain-architecture design based on features set
- Development of Token on the desired network according to the tokenization model
- Development of the technical platform for STO with KYC/AML
- Integration & performance testing in testnet environment
- Once the token is audited, assessed, and verified for successful launch, project will be migrated to production environment
TheBlockBox offers full cycle STO Launch Services to help companies yield the highest return on investment.