Suraj

Sto development service

Suraj04 Mar, 2020Other

Security can be defined as a fungible and negotiable financial instrument that holds some monetary value. After the fast rise and fall of Initial Coin Offerings (ICOs), the era of security token offerings has begun. Huge entrepreneurs from different industries have turned towards STOs to boost capital via equity crowdfunding. A security token represents the ownership information of the token, recorded on a blockchain. For instance, when you invest in conventional stocks, ownership information is written on a document and issues as a PDF or any other digital certificate. In the case of STO, the same approach is followed, but the info is stored on a blockchain for more security. STOs are the best choice for an entrepreneur looking to muster huge funds for their business venture but don’t have a suitable platform for utility tokens (as used in an ICO). That’s because the value of security tokens is based on the value of the company or underlying asset, rather than on-demand is driven b