The definitive guide to STO platform development

In the past few years, ICOs have been very successful, however, controversies surrounding the legitimacy of ICOs have made some countries ban them, while other countries like Switzerland, Singapore, etc. are considering passing tough legislation against them. To seek foreign investment, businesses are considering Security Token Offerings, which are not just another name for Initial Coin Offerings (ICOs), but are quite different. In contrast, STOs are backed by real assets such as gold, oil, stocks, etc., which makes them legal in the eyes of the authorities. 카지노사이트

A major shift from ICOs to STOs is being considered worldwide for the simple fact that security tokens offer legal compliance. As a result, more investors are interested in security token business models because of their blockchain potential.

However, to run STO you need to consider some important aspects which we have described below:

1. Determining the need for STO

As an early adopter of blockchain technology, you need to be able to articulate why a security token launch could be transformative for your business. The journey is very long and investors will test your knowledge and examine your well-researched business case before investing their hard-earned money.

First, it is very important for the company to assess its readiness for fundraising. In particular, this begins by considering the following diagnostic questions.

Is your business investable? Can you demonstrate to investors the three key metrics i.e. growth, control and quality?

How much has your customer base grown over the past few years?

Do your customers interact with your product/service frequently?

How much do you want to withdraw and what are you withdrawing for?

Have you ever been a part of crowdfunding?

How many investor meetings have been successful so far?

Have you defined your target group?

How much will you use to grow your company after reaching your crowdfunding goals?

2. Regulations to be considered

When you plan to enter the US market, you must ensure that your services are asset-backed and your token offerings are classified as securities. To do this, your offers must pass Howey and other alternative tests. We discussed these regulations in our previous Security Token Offering blog.

However, if your offerings do not pass the Howey test and are not subject to federal securities and regulations, your tokens will be disqualified as a security token and will be considered utility tokens.

3. Token Registration

First, come up with a name that fits your STO offers, then choose a token symbol. This will also allow you to reserve your token and prevent others from abusing it. You may need legal help here to fine-tune various aspects of the entire process, however your STO development company can guide you through the process. Once done, you can submit your booking details. A confirmation will be sent to you by the token issuing platform via email. If you've ever been part of an ICO, it works similarly so far.

4. Choosing a platform for issuing tokens

There are many Token Issuing Platforms that provide Token Issuing Services, we are one of the most famous names when it comes to Security Token Offering Services that can help you through the entire process. However, depending on your security token requirements, you will need to make sure if you want to launch asset backed tokens or if you are only looking for security tokens.

5. Use of whitepaper marketing

The importance of a whitepaper cannot be underestimated because it is the bible that speaks about your business and future goals. Your business prospects can read about security tokens and regulations and understand how the industry works, along with details about token usage and team members.

Once your whitepaper is ready, you should seek out expertise from industry leaders and build a team to help you gain credibility.

6. Empanel experts

Now you will need a team of experts who are well versed in cryptocurrencies and blockchain technology, just make sure you involve people from different departments such as accounting, sales and marketing, legal industry etc. This will ensure that your STO Launch will pass all the regulatory frameworks and tests depending on the target geography.

7. Marketing your STO platform

Start by creating a website that will cover all the key details such as development plan, token distribution information, whitepaper and project idea. Add a customer support channel and embed a live token sale countdown on the website. Furthermore, you can use other platforms like Medium And Hackernoon and other ICO/STO dating platforms that will introduce you directly to the crypto community.

8. Token creation to start STO

You will now need to provide additional information about your STO platform and token. In order to do so, it is recommended that you have a legal and marketing team by your side. 온라인카지노 

To do this, you need to be able to transact on smart contracts. This can be done using MyEtherWallet (MEW), which allows you to sign transactions and execute them using the Metamask Chrome extension. Here you will be prompted to add your website where you can add a link to your website. Once done, click the Submit button to issue the token.

9. Structuring Your Security Token Offering

There are several points to consider before structuring your STO. Please note that if you are running a limited STO, only a certain number of tokens can be sold, which have a predetermined price. Once these tokens are sold, you cannot resell any token.

STO structuring comes with a checklist to get started, you need to outline the start and end date of your STO, followed by supported payment methods and token valuation rate.

10. Whitelisting of investors

Finally, you will need to write a list of future investors for the tokens. However, this can be done before or even after your STO. The investor will be issued your security token in exchange for backing cryptocurrencies such as Bitcoin or Ether or in some cases even Fiat.

Congratulations! You now have your own regulatory compliant security token on the Ethereum testnet!

Note: You can also mint (create) tokens for existing shareholders, which is optional. This means that security tokens can be minted on an "on demand" basis. We provide comprehensive customer solutions for STO development. Email us today at https://aezfn89.xyz/ to develop your own security token or incorporate regulatory requirements into your token ecosystem. 안전한카지노사이트