The Ultimate revelation of advantages of sto
What is STO?
Security Token offering STO is actually related to Initial Coin Offering, as they both are fundraising methods for startups. Yet, STO has an upper hand, more regulations by the government and needs to bond 100% to the laws set by the government. STOs are assets backed, and it proposes to have some monetary value in the real world. This creates a secure environment for investors and increases their credibility.
It is not a hidden truth that some Initial Coin Offerings are subjected to many scams. Due to its unregulated environment and no collateral by the company to back up the token, it generates a low entry barrier and more chances of fraud and cheating. STO deals with ICO’s restrictions like scams and fraud of investor funds due to being managed by a governance body.
Why choose STO?
Apart from scam resistance, there are many other advantages on launching STO.
- Lower upfront investment than IPO, STO, is much cheaper to Switch out considering STO cut all middlemen and brokerages.
- STOs are digital assets and could be used to divide consequential assets into smaller assets. It makes it Secure for an investor to have fractional ownership of the product.
- STO being fully regulated by the governing body assures the security of the investor. The trust of the investor about their asset’s security attracts more investors to the project.
- STO is Much Safer Than ICO
- intrinsic value.
- More legitimacy.
- More transparency.
- More liquidity.
We have discussed the advantages of STO. But launching an STO is not going to be an easy task. You may have to work on the technical part and the business part. So, to reduce the loads, you can hire a trustworthy STO development company. Out of the many companies in the market, a trusted company is Zab technologies. It is a prominent STO Development company that offers the best services for STO development.
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