One of the promising technologies for the past few years is blockchain technology. Most industries are putting their efforts to incorporate blockchain in their business verticals. When speaking about blockchain applications, cryptocurrency stands first.
Cryptocurrencies are virtual currencies that are verified and recorded on the blockchain. The method of raising funds using cryptocurrencies is known as crypto crowdfunding. There are various types of crypto crowdfunding prevailing in the crypto ecosystem like ICO, STO, IEO, etc. Among these crypto crowdfunding methods, security token offering (STO) is a popular one. It is highly secure and has more advantages when compared to other crypto crowdfunding methods.
In this article, we shall discuss STO, its benefits, how to develop an STO, and the cost to create STO.
Come, let us start with…
What is a Security Token Offering (STO)?
As discussed earlier, security token offering is one of the popular fundraising methods among crypto fundraising methods. Here, startups and cryptopreneurs raise funds for their business by means of security tokens. Basically, security tokens are issued on a blockchain that represents a stake in an asset or an entity. These entities include real-world assets like shares, bonds, precious materials like gold, silver, crude oil, and other sorts of equities. Security tokens are issued only after completing the formalities of SEC regulations. So, it offers complete ownership for the token holders and they are highly secured as per its name.
Security tokens are created by incorporating all the features in a smart contract. After verifying a smart contract, the SEC will approve and issue the security token. Rules, regulations, and guidelines may change according to the token-issuing government. After issuing the security token, you can easily launch an STO platform. Launching an STO will help for raising huge funds in a well-secured manner.
The level of popularity attained by STO is due to the various benefits offered by it. There are numerous benefits of launching an STO platform. Now, let us see those…
Benefits of Launching an STO
-
More legitimacy
Raising funds with STO will attract more volume of investors as they involve the registration with SEC. Investors will feel highly secure when they are investing in STO-related projects. STO is fraud-proof and completely prevents scams and all sorts of malicious activities. STO is considered to be more protective as there will be the involvement of regulatory authorities.
-
Transparency
Launching an STO is highly transparent where all the details of the project can be easily traceable. Information that comes along with an STO project includes the state of the assets, financial results, investor details, management structure, etc.
-
High liquidity
Security tokens have high liquidity in the crypto ecosystem. Considering its high-end security features, many people are interested to invest in STO projects. It is predicted that security tokens will be “the future of cryptocurrency”. So, launching an STO will be highly beneficial.
-
Global accessibility
The Crypto industry doesn’t care about the borders and boundaries for raising funds. By launching an STO, funds can be raised from anywhere across the world with ease. Launching an STO in a crypto-legalized country will be more advantageous. Here, I shall list some of the crypto-friendly nations for launching an STO.
- Switzerland
- Canada
- Germany
- Portugal
- Malta
- Singapore
- Estonia
- Luxembourg
-
Fractional ownership
STO offers fractional ownership for the token holders as the value of a real-world asset can be divided into smaller values. Because of these smaller units, it attracts more investors to invest in an STO project. STO also reduces the level of risk when compared to the other crypto crowdfunding methods.
Now, we shall discuss the development steps to be followed for launching an STO.
How to Develop an STO?
Developing an STO platform is not as hard as you think. There are certain steps that should be followed for launching an STO in a hassle-free manner. Those steps are listed below.
- At first, you should possess a perfect business idea that plays a vital role in reaching the success of your project. Your idea should be unique in a way that can attract huge investors in the crypto ecosystem.
- Follow the rules and regulations that are required for launching an STO platform. You should also complete the legal compliance of the local government for launching your STO in a successful manner.
- This is the most crucial step to be followed for launching an STO (i.e) designing a whitepaper. A whitepaper is a technical document that holds all the details of an STO project. An ideal STO whitepaper has the vision and mission of the project, roadmap, token details, features of the token, development team, and terms & conditions of an STO project
- You should hold a team of legal advisory for handling your project in a legitimized manner. The advisory team will guide all the jurisdictions that should be followed.
- For launching an STO platform in a fully secured manner, you should hire a team of seasoned developers from a reputed STO development service provider. The provider will assist you with each and every little thing that should be followed for launching an effective STO platform without any hurdles. So, approaching an STO development service provider will be helpful for the success of an STO project in the long run.
- You can launch your STO platform only after creating a security token. There are various token standards available for security token creation in prominent blockchains like Ethereum, Tron, Binance smart chain, etc. ERC1400 is one of the most popular token standards for creating a security token. Security tokens exist in three types such as debt tokens, equity tokens, and asset tokens. Based on your business needs, you can create any one of these types of security tokens.
- For grabbing many investors, an exemplary STO website is highly important. So, you should have a stunning STO website for a successful STO project.
- Marketing and promotions should be carried out for the outreach of an STO project in the crypto marketplace. You can promote your STO project by following various marketing strategies like social media marketing, Email marketing, Guerilla marketing, etc.
These are the steps that should be followed for launching an STO in an effortless manner. Before following these steps, you will be interested to know the cost to create STO. There are certain factors that influence the development cost of an STO. They are…
Factors that Influence the STO Development Cost
There are certain key factors that play a vital role in deciding the cost to create STO. They are,
-
Business Idea
A unique business idea is the index of your STO project. So, if the idea is a bit complicated, then it will escalate the STO development cost. So, make an innovative cum feasible idea that wouldn’t cost more for development.
-
Complexity
This is the primary factor that plays a vital role in STO development cost. Based on the complexity of a project, the price will alter accordingly. The larger the complexity, the larger will be the development cost.
-
Timeline
Launching an effective STO platform will require a certain time to complete the development process. If your project is a bit difficult, then it takes more time for the developers to execute the project. So, time also plays a major role in the cost of STO development.
-
Technical framework
Based on the technical features added or if any changes are done to the STO website, it will highly influence the cost to launch STO. Alterations done in the architectural framework plays a huge role in deciding the development cost of an STO.
These are some of the predominant factors that influence the cost to create STO platform. By taking these factors into account, the cost for developing an STO will be decided. Now we shall discuss the…
Cost to Create STO Platform
All the exemplary features required for launching an STO will come together in an STO script. So, developing an STO platform using an STO script will be an ideal one. On speaking about the cost, as discussed earlier, we cannot explicitly predict the exact development cost for launching an STO. But, the cost to create STO may range from $7k to $14k. This range is based on the features that are incorporated in the STO script.
The money that is spent on anything should be worth it. So, getting a high-quality STO script is very crucial for the successful deployment of your STO project. In that regard, the quality will be good if they are developed by a team of skilled developers. So, choosing the service provider is quite an important one. So,
Why Choose Icoclone for Launching an STO?
Among the list of reputed STO Development Service Providers in the crypto ecosystem, Icoclone stands first. We are veterans in offering STO-related services. We have a team of skilled blockchain developers who designs the STO script as an exemplary one. We have delivered numerous STO scripts for our beloved clients across the globe. We have years of experience in the field of cryptocurrency and we are experts in offering ICO script, STO script, and crypto token creation. So, getting an STO script from Icoclone will help you for the success of your project in the crypto space.