Consider the state ICO's are in right now, it seems like everyone is talking about Security Token Offerings (STOs).
From YouTubers, investors, and gurus to reputable news outlets, there is a massive amount of exposure regarding these offerings around the industry.
This guide will seek to give you all of the necessary information you may need if you are contemplating a deal involving an STO.
If you are a newcomer to the world of blockchain technology, and cryptocurrency or even a seasoned veteran, the numerous acronyms can be confusing.
The fact that blockchain technology itself is in its infancy, means that many more, new terms and different products will enter the market.
What is an STO?
Shortly, security Tokens are in essence, cryptographic tokens that can pay the owner dividends, entitle them to a share of profits, pay them interest, or, they can be used to reinvest into other Security Tokens.
Should your Business even Consider an STO?
One of the first things you should ask yourself before you sink any effort into creating an STO is whether or not an STO is actually right for your business.
Generally, there are certain, non-formal criteria that will help you to establish if an STO is a worthwhile venture for you.
If your business falls into one of the two following criteria, then an STO would likely be right for you.
However, if you’re business fails to meet these criteria, it may be worth reevaluating your situation, with a target of meeting these criteria in the future.
Your business expects to have an annual turnover, exceeding $10M.
Your business is a start-up with a large growth forecast.
You conduct business in multiple countries.
You have the design to issue asset shares, which are transferable.
You wish to seek funding from individuals closer to your average consumer.
You want a higher level of liquidity for your company shareholders.
So if it does fit, you can more info about it in this full STO guide
And understand step by step how to launch it in your own business.