How Does a Security Token Offering Work?

STO Development

By Ellyseperry

STO involves the creation of a secured Blockchain network. The tokens can be created, acquired, transferred, sold, burned, and governed by the rules of their blockchain network and its smart contract. It can be provided over existing blockchain networks like Ethereum or can be specially created with its unique rules and guidelines.

Advantages Of STO Development:

  1. It contains larger Liquidity
  2. It acquires lower transaction fees
  3. Assets can be distinguished into smaller values
  4. Scam free because of SEC regulation
  5. Higher market efficiency

STOs are similar to companies raising funds through IPO. STOs differ from IPO. The investor is provided with stocks against his investment. In STOs, digital tokens legally represent the assets which comprises of gold, equity, real estate, etc., and they have been offered to the investor against his investment in the company. STOs are well-secured as they fall under security regulations and it's come under many jurisdictions.

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