Recently, Blockchain technology has grabbed more attention in the crypto space. Also, this technology has gained more fame among startups and entrepreneurs. Blockchain is used for many crypto-related services. It is also used for STO development services. Thus STO has created a tremendous turn on the blockchain industry.
Now a question may arise in your mind that “why should I create security tokens instead of other crypto tokens?”. The reason is because of its uniqueness and its credibility. The other reason is that some scams have occurred in ICO. So to prevent that, people are moving from ICO to security token offering and STO development services.
After the completion of this article, surely you’ll know about security token offering and STO development services.
Come let us begin…
What Is Security Token Offering?
Security Token Offering is a popular fundraising mechanism that helps startups and entrepreneurs to raise funds through fully regulated shares like Assets, real-estates, Gold, silver, crude oil, etc. Security tokens have some altered features than other crowdfunding methods. That is, Security tokens assure ownership through a secured blockchain ledger.
These tokens can be created only after backing some kind of securities. Creating security tokens will help to avoid intermediates. These tokens are created using smart contract mechanisms and developed under the SEC guidelines and regulations of the government. Rules and Regulations may change according to the local countries. Every country will have its own set of regulations to create security tokens. You can create your own security tokens with the guidance of a top-notch STO development service provider in the crypto industry like Icoclone.
Types of Security Tokens
There are three types of security tokens available in the crypto marketplace.
- Debt token
- Equity token
- Asset token
Debt tokens are created using real estate, contracts, or debt cash which are similar to short-term loans. The price determination of debt tokens includes two factors as Risk and Dividend. A smart contract indicated for a debt token should include some terms like repayment terms, dividend model, and the risky factors underlying that debt token.
Equity tokens include the company stocks(i.e) ownership of an asset. Equity tokens are created by dividing the ownership shares. It is the method of recording the ownership in an immutable blockchain. There is a high demand for Equity token development services because of sharing the ownership of the company and its products.
As the name itself indicates that it is the type of security token that includes real-time assets. Asset token involves the backing of real-time commodities like Gold, silver, oil, real estate, ventures, and more.
How To Develop Security tokens for Crypto Business?
The creation of security tokens is the first process of STO development. Actually, security tokens are created by backing real-time assets like real estate, stocks, etc. Security token’s value will be determined based on the value of the assets backed. Creating a security token is not as easy as a utility token. For creating a security token, SEC guidelines should be strictly followed. In STO, there will be interference from the government. So, these tokens are considered as highly secured. Now, a question may arise in your mind: how can I create a security token???. The solution is simple, security tokens can be created using the Ethereum token standard named ERC1400. Now, I’ll explain ERC1400 briefly.
ERC1400 (Security token standard)
ERC1400 is a combination of ERC20 and ERC777 standards. ERC1400 standard is the core standard that also works with certain Ethereum standards for working in mint-condition. Before creating a security token using the ERC1400 standard, all the rules and regulations of SEC guidelines should be satisfied. You can create your own security token using the ERC1400 standard, but it has more risk factors. To prevent it, you’ll need technical support for security token creation.
For the successful creation of a security token, you can hire a set of experienced and skilled blockchain professionals from a reputed security token development service provider in the crypto sphere. One such provider is Icolone. We’ll guide you with security token development using the ERC1400 standard and will assist you with the STO launch also.
Benefits Of creating security tokens using ERC1400 standard
- Full ownership will be provided to the token holder
- It provides the options for forced transfer( for fund-recovery procedures)
- ERC1400 tokens make transactions more secure and transparent
- Because of having high security, you can attract more investors during fundraising
Now, let us see…
Requisites For Developing a Security Token Offering Platform
Basically, the STO platform can be developed in two ways. One is developing from scratch. Developing an STO platform from scratch will take more time and also costs more. Second option is, you can easily develop your STO platform using STO script software. It is the ideal method where you can launch your STO platform quickly and in a cost-efficient manner. It also helps you to launch the STO platform based on your business demands. Even if you have STO script software, you should follow some of the steps to launch our STO platform successfully. Here are the steps listed below.
- Have a perfect business idea
You should have a unique and great business idea. You should think out of the box to succeed in your project. Your project’s idea should sound interesting among the crypto people.
- Follow the regulations
For launching an ideal STO platform, you should follow the rules and regulations of the respected countries. You should complete the legal compliance of the country. For example, Regulations followed in the USA are Regulation A+, Regulation D, Regulation S, and Regulation CF.
- Sketch your STO whitepaper
A whitepaper is a technical document that has all the momentous details of a project. A perfect whitepaper should include, aim of the project, Teams involved for development, roadmap, token details, and all essential features of the project. The disclaimer of an STO project should also be included in the whitepaper.
- Have a legal advisory
Launching an STO is not that much easy. Rules and regulations of SEC guidelines have to be followed. For that, you should have an expert and advisory team to guide you with all jurisdictions and regulations.
- Choose an STO development service provider
Picking a top-notch and reputed STO development service provider is important to launch an STO platform successfully. You can contact Icoclone for developing an STO platform. We are the masters in the crypto industry for STO development. Icoclone has plenty of skilled and experienced blockchain developers who are veterans in STO development services. We are offering premium STO script software with unique and latest features. We have offered nearly 80+ crypto projects to our happy clients across the globe. Our STO script software has the following perks.
- Asset fractionalization
- Legally compliant tokens
- Blue-chip security wallets
- KYC/AML solutions
- Investor contract management
- Create a security token
You can raise funds in the STO platform only if you have a security token. As discussed earlier, there are three types of security tokens available. They are equity tokens, debt tokens, and asset tokens. You can choose any type of security token which you prefer for your project.
- Creating an STO website
You should have an adorable STO website to attract investors. STO website is where the token sale takes place. An investor can register and participate in the token sale.
- STO marketing and promotion
This is the last and final step of STO development. You should market and promote your STO project by following unique marketing strategies. Marketing may be social media marketing, content marketing, and many more.
By following these steps, you can launch your STO successfully.
Wallet App Development For Security Tokens(IOS, Android)
A security token wallet app is developed for storing your security tokens in your wallet. We provide the token wallet app for our users in more than 30 languages. So It helps to provide the wallet app for our international users across the globe. This security token wallet app helps the users to store, transfer, and receive the security tokens. It also helps us to monitor the transactions of security tokens that are stored in the wallet. If you own your security token wallet app, then the tokens will be more secured.
If you have planned for creating a security token, then you should also develop your security token wallet. Without the security token wallet, transactions will become harder. So it is very important to develop a security token wallet and because of its usage there occurs a vast demand for developing the best security token wallet in the industry. In Icoclone, we offer the best security wallet app with all the best features incorporated in it. Our security wallet app supports all platforms like android, ios, Mac, and the web also. Thus by using our premium security token wallet development service, You can launch your own security token wallet for the successful launching of STO.
Benefits Of STO Development
There are massive perks available in developing a security token. They are,
- Assets can be divided into smaller values
- Larger Liquidity
- Scam free due to SEC regulation
- Lower transaction fee
- Higher market efficiency
Crypto experts predict that STO will be the most popular fundraising method in the future because of its unique features. Launching a perfect security token will yield a huge return for your STO business. Security tokens have more potential to become the priority choice for many startups and crypto entrepreneurs. So it is preferred to create security tokens and you can trade them in crypto exchanges.
Why Choose ICOCLONE For STO Development?
Develop your security tokens from the reputed security token development service provider in the industry. Icoclone consists of skilled and experienced blockchain developers for security token development and we are the top-notch STO development service provider in the industry. We will create highly unique security tokens based on your business requirements. Also, we are providing 24/7 technical and customer support for our ongoing crypto blockchain-based products. To develop your premium security token, you can approach ICOCLONE for the successful development of security tokens in the crypto market.