Security Token Offering or better known as STO is a popular way for entrepreneurs to raise funds for their startups. This blockchain-based funding model requires businesses to follow compliance and also protects the interests of financiers mandatorily. Thus, STOs are known for their investment-friendly nature, which makes them a hit among investors. However, there is a lot more to STOs than what meets the eye:
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- Global Acceptance: Since STOs are recognized by regulatory authorities such as the SEC as well as DAO, among others, this funding option is accepted in most countries.
- Equity Status: Unlike ICOs and other popular models, an STO project gives the investors an equity stake in the project.
- Cost-Effective Solution: STOs are relatively easy to develop when compared to other conventional solutions. This helps startups to save precious time and resource.
- Better Transparency: This funding model has better accountability, which improves the credibility of businesses among investor