🧐 How does a Security Token Offering (STO) actually work?
⚡️ Security Token Offering is a type of public offering in which tokenized digital securities, known as security tokens, are sold in security token platforms or exchanges. It was created to be a secure version of ICOs that is compliant with all laws and regulations. STOs give token holders rights similar to stockholders, like a voice in the company or dividends. STOs enable digital funding, while still complying with government regulations.
The process of launching an STO is a pretty standard procedure that may vary slightly depending on the jurisdiction of choice. The essential part remains the same: everything is tied to the offering type and whether it requires registration.
Here are the 5 main steps of the STO process:
🔸 Step 1: Pre-STO Research — Before you launch Security Token Offering, it is highly crucial to make a plan, choose the most suitable jurisdiction, do tax analysis, risk assessment, and financial structuring.
🔸 Step 2: Legal Structuring — at this point, there are two most critical tasks you will face: setting up a corporate structure and preparing documentation.
🔸 Step 3: Token Issuance & Offering — While conducting this third step, you have two important tasks: firstly, you have to issue the token which will fit the whitelisting requirements; this is when the tech team should get down to developing the smart contract. Secondly, you have to launch a token-sale platform.
🔸 Step 4: Offering promotion — this stage is about reaching out to your potential investors and launching the marketing campaign.
🔸 Step 5: Post-STO management — This is the final stage of the offering, which mainly sets the purpose of making the investors even more satisfied with the results of their choice. The main goals at this step include delivering an extra return and managing the existing assets.
💡 If you wish to set up an STO campaign, it’s best to choose a turn-key solution. This way, the offering in development will be overseen comprehensively at any given stage. Additionally, you will avoid the problem of data transitioning operations between different providers, which reduces the chances of mixups and delays.
👉 Stobox provides support with all 5 STO steps. Request a complimentary 30-minute consultation with the Stobox specialists — https://stobox.io/tokenization
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