{"id":1458,"date":"2019-07-02T09:53:23","date_gmt":"2019-07-02T09:53:23","guid":{"rendered":"https:\/\/coindeveloperindia.com\/blog\/?p=1458"},"modified":"2019-07-02T09:57:02","modified_gmt":"2019-07-02T09:57:02","slug":"sto-will-lead-the-crowdfunding-market","status":"publish","type":"post","link":"https:\/\/www.coindeveloperindia.com\/blog\/sto-will-lead-the-crowdfunding-market\/","title":{"rendered":"Why Security Token Offerings will lead the crowdfunding market?"},"content":{"rendered":"\n

When we talk about blockchain and cryptocurrency, the first thing we refer to is security due to its decentralized mantle. However, when the crowdfunding became bigger than expected with utility tokens, the security aspect of this technology started dwindling. And that happened because the creation of utility token become easier and cheaper. As a result, many projects succeeded in swindling thousands of crypto investors who are not yet able to recover their money. <\/p>\n\n\n\n

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Therefore, the U.S. Securities and Exchange Commission (SEC) had to intervene and now we have an all new concept which is much safer. A security token is a digital token which is underpinned by securities and they adhere to SEC regulations. It makes them hard to get because, in order to launch these tokens, you have to secure each one of them against assets. The result is very beneficial for investors who look for a more secure instrument to rely on.<\/p>\n\n\n\n

Related: How much does it cost to develop Security Token Offering (STO) ?<\/a><\/strong><\/h2>\n\n\n\n

Technically, there is nothing different between security\ntokens and utility tokens. However, the intrinsic value of the former is higher\nthan the latter. Moreover, they provide a more compliant structure which could\nbe adopted in any financial system. The regulators also favor this token\nbecause it secures the interest of the investors without putting a single dollar\non risk. Therefore, security token offering becomes a better vehicle for you to\ninvest and it is definitely going to take over initial coin offering. With this\nmethodology, it is possible to get better solutions to all the issues that\ntoken holders face every now and then.<\/p>\n\n\n\n

Ownership of Assets<\/strong><\/h2>\n\n\n\n

With this token, you get full ownership of the asset and it also helps hold the value. Under the environment set by this token, you can build a better ecosystem. Security tokens are associated with real-world assets and they have their own value. Dealing with this token gives you much assurance about commodities and goods. Its value is pegged against some or the other asset and the optimal value is also increased. Thus, you get a better option to deal with and revenue sharing also gets straightened for a long-term. The development of these tokens involves plenty of legal consultation and gives much better options.<\/p>\n\n\n\n

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Compliance Integration<\/strong><\/p>\n\n\n\n

The rules and regulations change as the geography changes\naround it. That makes the process of releasing the tokens a little different as\nnorms change in different countries. Before you can think of launching your own\nsecurity token, you need to check which country is it that you are going to\nlaunch it from and where else you are planning to sell them.<\/p>\n\n\n\n

Full Traceability<\/strong><\/h3>\n\n\n\n

This is another aspect of security token that makes it\nmore likable. They are created on a blockchain network and are fully traceable\nby all means. They have all the essential features of a coin that has been\ncreated by a decentralized distributed ledger. They instill transparency into\nthe transactions and help you ascertain the right value of your coin. It takes\nyour trading to the next level by deploying the appropriate resources in their\nplace.<\/p>\n\n\n\n

Reliability<\/strong><\/h3>\n\n\n\n

With STO, you get higher reliability which is not delivered\nby any of its counterparts. It is approved by the SEC and fully adherent to\nevery regulation. Security tokens take the level of credibility much ahead and\ngrant you the security that makes the best of this technology.<\/p>\n\n\n\n

The positive impact of Security Token Offerings<\/strong><\/h3>\n\n\n\n

There are many other advantages of using a security token\noffering. It is a better choice for the entire market and delivers results\nwhich are streamlined for every individual dealing in cryptocurrency. There is\nsomething for everyone:<\/p>\n\n\n\n

For institutional investors-<\/p>\n\n\n\n