Security Token Offerings or STO is the new category of cryptocurrency that has gained traction since the latter part of 2017. ICO market is now riddled with various roadblocks such as secondary security, scam projects, pump-and-dump projects, lack of sustainable profits, and much more. STOs, overcome these roadblocks with assets that are being valued by SEC and federal regulations.
STOs are a type of cryptocurrency tokens that are backed by tangible assets, profits, shares or revenue generated by a company. The process involved in STO is similar to ICO, but the difference lies in the fact that tokens offered in STOs are security-based tokens backed with assets and not utility tokens.
Since STO is a new technological platform, there are top 3 players in the the said market.
Polymath is one of the first players in the Security Token Offering to establish their playing field. They tokenize securities for programmable equities that enables companies to take control of their equities through computer code. Their platform doesn’t restrict timings, no matter the location, it is open for trading 24x7. Security Tokens still haven’t tapped the banking institutions which remains in the wall street. Polymath can access those treasure troves.
Polymath also allows legal delegates to bid on issuances and represent on the offering in a more regulatory manner. Polymath also creates marketplaces with escrow services for both legal delegate and developed on a single platform.
Polymath powers their platform through their own token called POLY, an ERC20 standard token that allows network participants to utilize the Ethereum’s pool of investors.
Another player in the Security Tokens market is the Blockchain App Factory. They are pioneers in the field of ICO development and have now entered STO development. They provide fractionalization of more substantial assets so that companies can break their significant assets and create Security Tokens Offering for it. As every STO has to comply with SEC regulations, Blockchain App Factory lists the needed regulations in the smart contracts so that companies can access them.
The STOs tap into the global investment pool where it provides greater market efficiency and trust among the investors by creating a security exchange along with a platform for creating a security token. Another cardinal point is the development of STOs in your blockchain, thereby providing full control to the companies. This advertently reduces the gas prices or changes in protocols.
With various benefits such as voting right, profit share rights, buyback rights, holdings and much more will seamlessly allow investors to invest in STO.
AlphaPoint is another entrant in the field of STO development. They digitize assets to launch a new marketplace for investors and reduce operational costs. They are involved in commodities, lowers barriers to enter into assets classes and more. As they are new to the race, more features will be added to the STO development to ease the investors.
The above list can help you to arrive at a decision in who will surpass the race in Security Token Development and its underlying services. Since ICO is losing its sense of trust among investors, Security tokens are replacing ICOs in every aspect. If you are going to create a security token, then I would suggest you to choose wisely.
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