My name is Kristina Semenova, I am the Head of Investors Relation Department at Platinum. Our team knows how to launch ICO and STO, and make your company successful.
Security Token Offerings have become very popular lately and people use STO as a great alternative to IPO. In other words, this solves many issues that IPO could have had and it just has become the next big trend in crypto. IPOs cost a huge amount of money which not everyone can pay just for going public. However, going public using the blockchain method (which in this case would be STO) is a great way of saving a huge amount of money. After ICOs, STO truly is the next biggest trendsetter in the means of fundraising digitally. A Security Token Offering can represent voting rights in a certain organization, stake as well as a value.
What is STO?
We have been mentioning STO, its importance and significance, however, we haven’t yet defined what STO actually is. Before getting deeper into the definition of a Security Token Offering, it is important to make sure that the concept of securities is clear. Some examples of financial securities, in general, are funds, stocks, bonds and etc. Basically, unlike regular securities, a security token is one that proves that you possess a certain asset on a blockchain.
Thus, STOs are financial securities that are backed up by certain types of assets or revenues of a given company. The function of an STO is the same as that of regular financial securities, except that they are confirmed through blockchain and are easier to have access to.
The Advantages and Disadvantages of STO.
The good sides of Security Token Offerings could be found in the description stated above. STO certainly has many advantages, however, it is crucial to keep in mind both the advantages and disadvantages for future reference.
|Advantages of STO||Disadvantages of STO|
|STO can be used to tokenize |
any asset and for trading online.
The advantage here is not only the fact that it can be traded online,
but also the fact that there is an
ease of use and many fees are
avoided (unlike IPOs).
|STO is a new and a ‘young’ |
market, which can be counted
as a disadvantage.
Because of the fact that there hasn’t been any big experience in this
field, both businesses and investors consider it to be pretty risky.
|Cryptocurrencies are traded 24/7. This means there are no restricted hours, and securities can be traded all day, every day. Thus, trading in the global market will become |
possible. It does not matter what
time it is in a specific country
because you can always trade.
|The removal of a middleman is |
usually considered as a huge
advantage. However, this has its
downsides as well.
With no middleman present,
the responsibility is fully on the
buyer and the seller.
Things like compliance regulation and insurance securities are no
longer the responsibility of
|Fractional ownership is another |
advantage you can face with
A fractional ownership is
something like diversifying
a portfolio. This is a way to split up ownership into fractions and avoid high amount of payments.
| Another disadvantage can be |
considered the fact that there are
many regulations and limitations
as to who can participate in STOs.
Issuing a security for an already
established business is pretty
complex and costly.
What is ICO?
ICO or Initial Coin Offering is another type of funding which is done by using cryptocurrencies. Initial Coin Offering is very similar to Security Token Offering, except people prefer STOs over ICOs and there are several reasons for this. The main difference between ICO and STO is that ICOs do not give any rights or obligations and aren’t backed up by any actual tangible assets. Literally anyone can launch an ICO, and the good thing is that there is little regulation, which makes the process even easier.
STO Marketing in 2019.
There have been spread rumors about the fact that the marketing strategies of both ICO and STO are of poor quality. Which is true, not only the ICO and Security Token Offering marketing strategies are done poorly, but the content is of low quality as well. It should be no news that content plays a crucial role especially in websites, and it should be very well-written for a company to be able to grow. People prefer referring to an STO marketing agency for getting specific STO marketing services, but before trusting anything to anyone you should understand for yourself how the process should flow. In order to understand how exactly to market an STO and be successful, read the following steps listed below.
We have already mentioned the importance of content on a website, which can be proven in this situation. When looking for an effective way of promotion of STO, your goal should be to increase the number of traffic coming to your website. The best way to do this would be through blogging, specifically creating the right content with the right keywords. Try to release an article at least once a week and you will start experiencing an increase in the number of organic traffic coming to your website.
2. Search Engine Optimization (SEO).
You might have the brightest ideas, the biggest investments, and best strategies, however, all this will have no point if your website is not on the top list of search results through search engines. In case if this term is unfamiliar to you, using Search Engine Optimization is the practice of influencing how recognizable your website will be as a result of online searches through search engines. Now, SEO is not a one-step process, it is an ongoing one, and you want to trust this to a specialist for it to go as planned. This way you will build trust, and ensure people that you are not going to disappear after a certain amount of time.
3. Working With Crypto Influencers
We have mentioned earlier that this field has become very trendy and the trend is continuously growing. In 2019, we have already reached the point where crypto influencers exist and people really do take their opinions into account. This is why it would be a great strategy to advertise STO by actually paying crypto influencers to talk about your website on their social media accounts. This would be another significant way of increasing the number of traffic entering your website. An important thing to keep in mind is that the number of followers of crypto influencers on social media is necessarily not a correct indicator of their ‘fame’. You need to make sure that these followers are actually active and do have high engagement with that account.
4. Build Credibility
Last but certainly not last, whether you are a STO marketing company or not, you should make sure that you build trust for your buyers. Building trust and credibility is the key to your success, which is why you want to use some marketing tricks that will help you gain that trust. First of all, make sure you have https, to ensure your website is secure. Next, create a brand using a nice logo and design on your website. Try promoting your product in person, in order to gain trust and gather social capital.
Taking into consideration all the points discussed above, it becomes obvious that Security Token Offerings will grow in their industry and become even more popular in the future. This is why all the advice connected with the best marketing strategies for STO should be taken into consideration. When knowing the exact ways of advertising STO, you will be able to gain the trust of your buyers and make your Security Token Offering a grand success.
Thank you for reading this article!
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