Security tokens:

A token that pays share profits, pay dividends and let the investor invest in other tokens are considered to be the security token. This kind of tokens will act as digital shares which are backed with tangible like assets, profits, and revenue of the firm.


WHY SECURITY TOKENS?
In the case of ICO, the entire crowdfunding model runs based on smart contract system, whereas the investor has to sign in an agreement before participating in the ICO. Many ICO’s will not clearly declare whether their tokens are utility tokens or security tokens, and finally, they could tell “ they were not sold security tokens, so you can’t claim this particular entity or profit.” To avoid these ICO’s have to clearly define in their smart contract, that the tokens sell are security tokens and so that the investor can claim for their shares.

WHAT ARE SECURITY TOKEN OFFERINGS?
As we said above it is just similar to ICO, But this is kind of crowd-funding model provides high-level protection for investors rights and reduce risks of issuers in regulating the token distribution. This is achieved by selling the Security Tokens.

HOW TO LAUNCH STO?
As far as now, we have discussed STO from an end user (investors) point of view, which have covered the introduction of ICO, utility tokens, Security tokens, What are security tokens offerings, Difference between STO and ICO, and how STO have become top of the market. Right?

The remaining section of this article is gonna discuss Security token offerings from a business (issuer) point of views. The first thing is how to launch STO

STEPS TO LAUNCH STO
1.Deriving the Strategies and Plan For STO
2.Focusing on what to do and what not to do
3.Compromising the regulatory issues
4.Deciding who can participate and who can’t participate
5.Backing up the costs for security placements
6.Token Development
7.Fixing the issues faced by investors immediately

Bitdeal team reported that we support business to launch STO. For more details https://www.bitdeal.net/security-token-offerings