The crypto market never stops developing and is always producing new types of assets and events to keep users engaged and liquidity churning across the multitude of platforms that make up its digital environment. The industry’s blockchain technology foundation enables projects of various types to develop and introduce new forms of digital assets and present them to the public in light of usability, value generation, and business opportunity.
The advent of tokens was followed by the branching of their technological base into various subtypes, one of which was the security token. As a highly controversial asset, security tokens are subject to regulation, specifically, the US Securities and Exchange Commission Regulation D. As such, projects wishing to launch a security token must resort to a security event. specialized crowdfunding known as STO or Security Token Offering.
Such events need special types of STO marketing become visible. And this is where the need for STO marketing services becomes apparent. Since STO promotion is a highly specialized matter, dedicated STO marketing agency entities have sprung up to advise and promote projects looking to launch security tokens.
What is a security token offering?
A security token offering is a special type of Initial Coin Offering that is regulated by local securities legislation and is intended to sell security tokens to willing investors. The security tokens of a crypto project are sold in an STO with strict adherence to local or international legal regulations to ensure that all relevant laws are followed and that the project is considered a security, a value generating proposition that is intended to accumulate price. . overtime.
Types of STOs
There are three main types of security tokens, which determine what type of STO investors participate in and what type of STO the project intends to launch.
Stock tokens are a type of security tokens that closely resemble traditional shares and give their holders voting rights and financial benefits.
Debt tokens represent a loan made by investors to the project with interest rates for short-term holding. Such security tokens are evaluated based on their risk index, which determines their interest rate.
Asset-backed tokens are a type of security tokens that are backed by real world assets as real estate or merchandise and give their holders property rights over said goods.
The three types of STOs are governed by different types of regulations, which differ from region to region and require highly specialized promotional approaches.
Benefits of advertising for STO
The legal aspects involved in STOs require that the projects launching them have considerable experience in order to avoid prosecution. This is where the benefits of hiring an experienced STO advertising agency like Flexe.io become apparent, as such agencies have extensive experience in both legal and promotional matters related to crowdfunding events like STOs.
In addition to providing legal advice, reputable agencies such as Flexe.io also tailor promotional strategies and campaigns to suit the client and then execute the advertising and marketing campaigns through a series of more than 30 types of services.
An STO is a very specific crowdfunding instrument that crypto projects should venture into only with the support of experienced STO ad agencies like Flexe.io.