Why launch STO? (Business Perspective)

August 18, 2020

Why launch STO?
(business perspective)

Here are some of the reason why security tokens are appealing to companies especially startups:

  • Low barrier to entry (STO as cryptographic tokens are designed to tokenize any asset. Such flexibility allows smaller companies to raise funds through private capital markets at lower up-front costs)
  • Founders don’t need to surrender voting rights or board seats. (founders can retain a good percentage of the company’s ownership while the token holders can receive dividend rights.)
  • Affordable (The process of a STO is automated through a smart contract on the blockchain; thus, there are no costs for expensive intermediaries.)
  • Attract global investment (STO make borders disappear)

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