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Launching an STO, involves a lot of essential and sequential processes which is also involved with a lot of regulations.
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How To Launch STO ?
Overview: STO - Security Token Offering, it is completely a crypto crowdfunding model which replaced the need for ICO. Launching an STO is not so simple as Like ICO. In Initial coin offering concept, you will create tokens, publish your white paper, deploy your website, Market your token and will collect funds for the tokens you sold. Whereas in STO, you'll do the same, but here you should create security tokens instead of utility tokens. You must give security to the investors you get to connect with. Most importantly you should do all these things by underlying the SEC rules and native government rules. Because this innovative crowdfunding model involves with security tokens that are packed with existing real-world assets. So we'll discuss every detail of launching an STO in brief below.
STEPS TO LAUNCH STO 1. Understand The Legal Compliance 2. Derive a Well Cleared STO Business Plan 3. Get Proper Consulting and Development Services From STO Company
Understand The Legal Compliance Every country has a set of rules and regulations in buy, sell, fundraising, investment, and Security issuance processes. Most of the countries like India are having cut-throat restrictions to sell, buy or invest in crypto tokens/ cryptocurrencies. So it is very important to find out whether your country can allow you to launch STO. For global understanding let us explain this concept based on US federal security regulations and legal compliances. Regulation D: Regulation A+ Regulations S ● ● ● For better understanding on these regulations, check out these article Regulations To Launch STO
Derive a Well Cleared STO Business Plan After understanding the basic regulations you must write down a smart STO Business Plan, In that business plan, you must cover to whom you are going to sell your tokens (i.e) Target audience. And how much capital you are going to raise through STO. Write up what you are going to do with your STO, and make it as a document, finally wrap it up as a white paper. ● Before releasing the white paper, you must have complete some mandatory things. Which involves understanding the security laws which cover up obligations on chosen jurisdiction. ● At the moment of releasing the white paper, you must have a pack up of Tokens. So you must connect with a blockchain company like bitdeal, who are expert in developing security token. ● You should do some marketing activities to promote your security tokens. But remember you should do marketing activity with a subject to the laws involved. So you cant market your tokens on the internet as you do in ICO. ● In STO, Smart contracts are main elements, So your STO platform must have the ability to automatically generate, proper smart contracts for everyone who involved in crowd selling. ● Make sure your smart contracts are properly encrypted and has no code bugs. ●
Get Proper Consulting and Development Services From STO Company As we said above STO needs a lot of regulatory claims and should have legal compliance issues in order to properly launch it. So, Getting connected with an STO development company will make it easier for the issuer to properly filter out the possibilities to launch STO. Blockchain development company can alone create security tokens, so it is better to find out an STO development company like bitdeal to create your security tokens. Security Token Offerings