How Does a Security Token Offering Work?

[Tim David 0]

STO involves in the creation of a secured Blockchain network. The tokens can be created, acquired, transferred, sold, burned and are 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 it's unique rules and guidelines.

Advantages Of STO Development:

• It contains larger Liquidity 
• It acquires lower transaction fees 
• Assets can be distinguished into smaller values 
• Scam free because of SEC regulation 
• 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. 

Whether you want to build your own Security token, Kindly reach us. 

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