Starting a Security Token Offering? Here's Marketing Strategy You will Need

4.9
Starting a Security Token Offering? Here's Marketing Strategy You will Need
11 Min Read

As the government authority comes closer to crackdown on the ‘utility’  tokens that work as unrecorded securities, a new variety of tokens is increasing; the security token, supported by true world assets, and fully SEC - amenable.

Securities-supported tokens are variants of authentic utility tokens, like Ether, or real value storage tokens, like Bitcoin. Here is more detail about it.

What is a Security Token and How Secure is it?

A security token is referred to as a transferable device that identifies a specific identity virtually through holding some part of personal knowledge. However, a security token can be plugged into a system in order to grant entrance to a network service by the owner. Whereas the STS (Security Token Services ) provide security tokens that rectify the individual's identification.

The Basics of a Security Token

Security tokens have many various forms which include hardware tokens that carry chips, wireless Bluetooth tokens or programmable electronic key fobs, and USB tokens that plug into USB ports that operate devices remotely such as to acquire access or gain to a car or apartment building.

On services single sign also utilized security tokens to log users into the websites of third - party. There would be no attachment of the disconnected tokens to the network or computer in any way possible, however, the users put the information from the token into the system by itself. Linked tokens work in automated and electronically transmit knowledge to the network once they get attached.

Types of Security Token

Here are the types of security tokens are -

Asset Token -  It is the token that shows the possession of the actual-world assets, like fine arts, real estate, diamonds. Rights likewise equity tokens such as tokens showing ownership of a shopping centre could be named with its holders to look after the real estate ( opt whom to rent) and to gain distribution( e.g out of rents).

Profit-sharing Tokens - With a right to control its business and right to money distributions will be offered by the Security tokens to its holders. Profit-sharing tokens may be utilized in the future in order to reimburse users who can hold the tokens and carry to acquire distributions or sell them for an instant lump-sum payment.

Equity Tokens - Equity token shows possession or other financial interest in a business organization or business venture. And that interest may indulge the right to control the business, or the right to distributions from the business together or may not.

Debt Tokens - In this token, it can be showcased limited possession of a liability. These kinds of debt tokens could be provided through municipalities or corporations in the space of older bonds.

Benefits of Security Tokens

Here are the benefits of Security Tokens -

Fractional possession- Security token has been utilized as the source to muster funds on products that need more investments. For example, art collectibles that charge millions of dollars are fixed for the rich investors only. The art collectible value is shattered into fractions because of the security token which can later be provided to investors reaching a wider base.

Enhance in Liquidity- Basically, these tokens provide more liquidity for the ease of buying and selling in the market or basic asset that is not open or confusing to sell or purchase. However, liquidity is signified in two ways - that is fund and market. Where fund liquidity is the way for getting credit with small transactions or assessment charges and market liquidity is known as transactional liquidity.

Regulatory Need - STOS is counted under the stern ambit of all security investments. Any allotment of security tokens will be addressed according to IPO rules which come under Reg D, Rule 506, and Reg A, Reg S. Currently, the SEC is also looking at alternatives and wants to come up with additional guidelines to make the STO market certain without repeating ICO scams/hacks. As the latest reports, the world’s real estate worth has come to over $280.6 trillion dollars, which gives a strong direction of the range we are into.

Cost-benefit- The allocation of security tokens is pointed to eliminate middlemen and offer the easiest to investors. The invention of the crowdfunding platform will provide more scopes to corporations to look at public investments and so to enhance more responsibility and clarity for the long way.

What is STO?

While the arrival of Bitcoin happened in 2009 which made it mainstream. While cryptos and other blockchain-attached financing gathered the importance of being explosive and theoretical, there is a huge accord regarding the value of blockchain technology and other forms of distributed ledger technology in finance.

Best STO Marketing strategy?

Here are the following STO marketing strategies -

STO

STO Preparation

Pre - STO

Post - STO

Identifying your target consumer

Token sellers can look for complete registration with the SEC, however, fewer organizations opt that way ( which is also hard to condemn them for) full SEC registration is a legal, logistical and financial swamp. To ignore that step, however, organizations should select an SEC exception. Many firms go with the Regulation D exception, which normally for bids sales to non - ascribe U.S investors. There is a regulation A exemption many companies are taking advantage of it

However,  for the time being, securities token marketing means marketing to ascribed and non - U.S investors. Attributed investors are those who are generally institutions or specifics having a net worth of $1 million or more. Thriving securities token sales pointed to their marketing for this group of income.

Use Social media platforms to your full benefit

Social media is currently one of the biggest sources in order to promote or advertise products or services, where STO would no longer be an exception. ICOs run on social media platforms with all potential, however, recognizing STO is a variant from a conventional ICO, the utilization of social media would be slightly different too.

Utilize other content publishing platforms like Medium

In the world of cryptocurrency, Medium is considered one of the best platforms. It is proficient and carries a diverse following. There are other certain famous in the blockchain spheres, Steemit.

Reach out to STO experts or hire STO Marketing services

STO professionals come in a way handier in restricting such barriers. There are three fields where one requires assistance such, technical, legal, and marketing. There would be an advisor with experienced knowledge of the market and its difficulties will come out with a lot of fresh things on the table that you possibly may not get it otherwise.

Begin a Newsletter

When you come across STO marketing strategy basis. There are many times when people just only keep hard work on marketing in order to attract investors in the concern of STO. Although, the marketing stage is a regular one and indulges including those potential investors.

SAG IPL is Here for You

While the STO marketing plan will lead you to assist Security Token in getting more investors across the world, emerging your profitability, and making you popular. However, it is crucial for a well-established marketing plan for the promotion of your fresh token sale. So, if you are looking to hire a dedicated STO marketing service agency. Then you can contact us right on the given number and email id. SAG IPL provides top-notch marketing solutions, ranging from white paper development to project launch, exchange listing, and marketing.