The crypto market never stops developing and is always producing new types of assets and events to maintain the engagement of users and the liquidity turnover on the multitude of platforms forming its digital environment. The technological blockchain basis of the industry allows projects of various types to develop and field new forms of digital assets and present them to the public in a light of usability, value-generation, and trading opportunity.
The advent of tokens was followed by the branching of their technological basis into various sub-types, one of which was the security token. As a highly controversial asset, security tokens are subject to regulation, specifically – Regulation D of the US Securities and Exchange Commission. As such, projects willing to launch a security token must resort to a specialized crowdfunding event known as an STO, or Security Token Offering.
Such events need special types of STO marketing to become visible. And this is where the need for STO marketing services becomes apparent. With STO promotion being a highly specialized matter, dedicated STO marketing agency entities have arisen to counsel and promote projects seeking 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 aimed at selling security tokens to willing investors. The security tokens of a crypto project are sold at an STO with strict compliance with local or international legal norms to ensure that all relevant laws are abided by and the project is deemed a security – a value-generating proposition that is intended to accrue in price over time.
Types of STO
There are three main types of security tokens, determining which type of STO the investors are participating in, and which type of STO the project intends on launching.
Equity tokens are a type of security tokens that are much like traditional stocks and give their holders voting rights and financial benefits.
Debt tokens represent a loan given out by investors to the project with interest rates for short-term holding. Such security tokens are evaluated based on their risk ratio, which determines their interest rate.
Asset-backed tokens are a type of security tokens that are backed by real-world assets like real estate or commodities and give their holders ownership rights to said assets.
All three types of STOs are regulated 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 projects launching them to have considerable expertise 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 such crowdfunding events as STOs.
Apart from providing legal counseling, highly reputable agencies like Flexe.io also tailor promotional strategies and campaigns to suit the client and then run the advertising and marketing campaigns via a host of over 30 types of services.
An STO is a highly specific crowdfunding instrument that crypto projects must venture into only with support from experienced STO advertising agencies like Flexe.io.