Security Token Offering (STO) is the procedure to sell security tokens to investors who are willing to participate. But question comes- what is a security token? A security token is an investment contract that signifies legal ownership(verified within blockchain) of a physical or digital asset like stocks, bonds, ETFs, etc. Thus, STO is a way to tokenize tradable assets and offer to the public in a responsible regulated way.
From the perspective of fundraiser or issuer of token, STO can expand the range of investors or wider audience can be reached as tokenization of every asset class is possible and also it can be easily transferred across borders. For investors, the major advantage of STO that it negates the chances of the fake company or scams associated. STOs not only in line with regulations but are also traded on verified exchanges, thereby investors can trust them with their funds. So, you might be thinking to review some of the best STO to invest in but are puzzled how to invest? Where to look for the STOs? I recommend you to first complete reading this article, you may get responses to some of the questions.
A fundraiser needs an issuance platform to offer a security token to the investors. Issuers are advised not to issue coins by themselves as they might fail in fulfilling the demands of regulatory authorities. Also, regular crypto exchanges cannot be directly involved to offer security tokens due to regulatory requirements. Security token issuance platforms are present in the crypto marketplace especially to offer tokens by helping you in completing the documentation related to the regulatory procedure. So, the platforms involved in issuance of STOs are:
These platforms are meant for issuing the STOs in a smooth manner, following the rules and regulations. But, presently many exchanges and crypto brokers are working to develop their network for the purpose of issuance of tokens through STOs.
When you came across the fact that regular exchanges are not deployed for Security Token Offering, you might be thinking-How to buy STO tokens? Don’t worry, we are here to help you. To invest in STOs, you have to log in to issuance platforms of STOs. Or you may consider that the platform where the company has raised STO turns to be your STO investment platform. So, you just need to follow the simple steps:
This is a simple procedure just like you purchase coins from any crypto exchange. Alike, you have to be involved in deep research before investing in any STO. Now, you know about the platforms and procedure to buy security token offering, you wish to know list including top STO 2020 for the purpose of investment.
After overviewing the various STOs and employing are analytical tools, we came across with few of the STOs which are having the potential to transform the crypto space. So, you can best STO to invest in from the mentioned list.
There are plenty of options available in the market, you can easily review them and choose to invest in the STO which best suits you.
STOs is one of the reliable tool to raise the funds and also a secured option to invest your funds. As the crypto industry is expanding day by day, so in future it is been expected that more fundraising tools will be evolved. But, for now you can try your hands on STOs to invest your cryptocurrency.
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