SECURITY TOKEN DEVELOPMENT COMPANY TO COME UP WITH A REGULATED FUNDRAISING MODEL
Tokenize your assets with ultimate security via the best security token development company Shamla Tech!
How STOs replaced ICOs?
ICOs evolved as the major fundraising media for startups, once after bitcoin and Ethereum faced massive success. Their market cap as well was found to stand high in the market at that time. By the way, everything went well for ICOs until the rise of scams in the industry.
Though ICOs facilitated the ease of raising funds for startup projects, they were noted as law-breaking business models at a certain point in time, when the scams entered the market. Rather than selling the equity funds, ICOs permitted entrepreneurs to just issue their digital coins.
As time passes, a lot of entrepreneurs started launching illegal and non-functional tokens in the market, which have no scope for value in the future. This lead the investors to lose their hope in ICOs over the years.
Immediately once after the scam threats reached their peak, investors were started looking for highly secure business models on par with ICOs. This situation gave rise to the development of security token offerings furnished with ultimate security.
Besides, the ICO advertisements were banned by some of the major social media channels like Facebook and Google. This made entrepreneurs initiate a wild move towards STOs right from ICOs since they found no other option to go with.
Thus, STOs were proposed with an aim to avoid the scam issues and to bring a highly compliant fundraising strategy ever.
How an ICO startup can make STO functional for its business?
With the rise in the progression of an alternative trading system, it is obviously possible for a startup to jump into STO right away by making registration with SEC. At the same, the concerned startup should start concentrating on revamping its operational flow.
This means that the entire business system needs to be transformed for better compliance. If there is a need, a compliance officer can be appointed in this case.
In order for any entrepreneur to launch an STO, he needs to follow the regulatory exemptions as listed out in the laws governing the STO launch process. For that, he should seek the help of a legal security token development company like us.
As the best STO development company, Shamla Tech can help you enter the business market with a more promising STO model to find your way to success in no time.
