5 Facts About Security Token Offering

Posted by angelacassan on July 2nd, 2019

Security Token Offering or better known as STO is a popular way for entrepreneurs to raise funds for their startups. This blockchain-based funding model requires businesses to follow compliance and also protects the interests of financiers mandatorily. Thus, STOs are known for their investment-friendly nature, which makes them a hit among investors. However, there is a lot more to STOs than what meets the eye:

1. Global Acceptance: Since STOs are recognized by regulatory authorities such as the SEC as well as DAO, among others, this funding option is accepted in most countries.

2. Equity Status: Unlike ICOs and other popular models, an STO project gives the investors an equity stake in the project.

3. Cost-Effective Solution: STOs are relatively easy to develop when compared to other conventional solutions. This helps startups to save precious time and resource.

4. Better Transparency: This funding model has better accountability, which improves the credibility of businesses among investors.

5. Round-the-clock Trading: When compared to traditional funding options, STOs allow the users better mobility, and users can execute trades without any geographic or time restrictions.

If you are planning to develop your own STO platform, we suggest that you look up the Blockchain App Factory. They are a premier company when it comes to building innovative Security Token projects. They have unparalleled experience in this domain and have created many successful projects. Their offerings are 100% white-label and can be customized to meet your business requirements.