Security Token Offering (STO) is the new trendsetter for most of the cryptocurrency market. Going by the statistics, STO has managed itself to be the next big thing this year and is bound to grow big.
Many best cryptocurrency wallets are keen on STO since it passes the Howey Test. The security tokens normally derive value from a tradable asset and are quite efficient to apply on any use-case.
The token offering is a form of digital fundraising model and are financial securities. They replicate traditional shares and are abided by the Securities and Exchange Commission (SEC) regulations.
Tips to choose the Best STO Agency:
Any business or individual should validate STO Development Agency by considering the following features before venturing into any of them.
1. What to look for before opting for an STO Development Agency?
An agency should have a strong team which can deliver results for the client. It should have its own market and service for the clients.
2. How is the security token structured by an agency?
The security tokens come in various size and shape. Security tokens come in the form of tokenized equity, in the form of debt securities like tokenized bonds or in the form of real estate venture to name a few.
You have to know what the STO development agency structure is and how it is offering you based on your investment needs and risk profile.
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3. Does STO development company has regulatory approval?
The STO Development Company should adhere to regulations since security tokens are compliant to federal security regulations. In the US, the agency for the security tokens need to abide by the following regulations:
- Regulation D
- Regulation A+
- Regulation S
You should look out whether the STO is registered and is following any one of the above regulations according to your investment or business interest.
4. How is STO Development Company’s Technical Service?
You should consider the STO agency if only it has technical services including smart contracts, adding financial regulations and active code maintenance like:
- Code security audits
- Coding, testing and implementation
- Platform and Smart contract creation
5. Whether the STO agency has created Security Token with various platforms?
You have to look whether the agency has created different issuance platform. The agency should have a security creation service like:
- KYC Identity Aware Tokens
- Migration to a new blockchain platform
- Token creation
6. What is the technology that the STO agency using?
Technology is the key source which is driving ICO and STO. You have to know what is the technology that the agency is using for Security Token Offering development.
7. Does the STO agency has its owner’s manual?
You have to look for the agency’s owner manual since it is like a whitepaper and explains the applicability of the product and token.
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8. Does the STO Company have Social Media presence?
Social Media presence of the STO company provides insights like the business, customer engagement, followers, comments and many more. It is important to look for the company's social media presence on various platforms.
9. Whether the agency has support community management system?
The agency should have its support community management system to answer customer queries raised by individuals in crypto forums or social media platforms. It should also offer helpdesk number for clients in case of any queries and should be addressed timely.
10. What should the STO agency website provide?
The website is the platform where a customer frequently visits to know more about the news, live market, information and more. Therefore a website of the agency should provide all the information related to STO and cryptocurrency.
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Conclusion
You must know what STO development agency is offering in terms of business, the market research an agency conducts including what is the strategy applied and executed successfully.
The STO agency should use only regulated STO on its issuance platform and should adopt the secured technology for transactions. You must look for a healthy combination of all the above features before considering to opt for one.