Security Token Offering

Security Token Offering 2019

Arguably Security Token Offering STO will be a big thing in crypto market in 2019. To understand the security token in a better manner, first of all, it is mandatoryto understand security in Finance.

Bonds, debentures, notes, options, shares (stocks), and warrants are comes under securities, which are tradable financial assets. Share or stock allows you to own a part in a company, without taking actual possession of it. Companies and government use these methods to raise the funds from various investors. And investors get their returnin the form of dividends or interest rates or share of company’s profit. And when these things are done through a Cryptographic token then it is known as security token.

Simply put, STO Security Token Offering is the fundraising model like ICO, but STO tokens are backed by the real time digital asset. Where ICO is designed to automate the token sale between two parties without any security contract the same security token offering STO is developed with advanced security. So STO is considered more authentic than ICO and there is no place for scam in STO. STO tokens are registered with SEC and it is regulated way of crowd funding. People who feel that they have been cheated during STO; they can claim their assets legally through court.

Security token Offering list at CoinMarketPlus

At CoinMarketPlus you will get comprehensive list of SRC20 security tokens which are listed after proper research and analysis. We have dexterous team of professionals who do end-to-end research and check the each aspects of STO like advisors, lawyers, regulators, and technical platform behind the STO. Besides, you will get the latest and complete information about all upcoming and active STOs.

The key difference between ICOs and STOs

• Where ICOs are easy to set up and chance of scam arises, the same STOs are not easy to set up. To launch STO you will have to deal with advisors, lawyers, regulators and technical platform, which is not so easy. Since so many entities are involve in STO and it goes through tough checking before launch, so there is no chance of scam.
• STOs are backed by real and registered assets, so you can trust on STO project. On the other hand ICOs are not backed by real time asset so you can’t rely on ICO project.
• STOs are compliant and fully regulated, but ICOs are not full regulated, investors holdall the risk.
• STOs are genuine and incorporated into the greater security market, the same ICOs are purely speculative and you can’t rely on them.

What are the advantages of security token offering?

There are array of benefits of security token offering. Such as: equity, dividend, voting rights, profit share rights, buyback rights, and easy liquidity etc. Apartfrom that STOs are approved by SEC, increase in liquidity, lower issuance fees, offers greater market efficiency, and global capital investment pool.