How to Strategize Content Marketing for STO Project

 

In the world of security token marketers, things are pretty much different. STOs are just occasionally not allowed to operate with conventional retail investors, probably because of the regulatory restrictions in several jurisdictions. In the US, the legislation does not allow the participation of non-accredited investors in most STOs. Therefore, the marketing strategy of a security token provider should be extensively geared in the direction of accredited and sophisticated investors.

Sophisticated investors are normally well educated and are experts in all the common finance-related topics. They usually have an above-the-average capital pool or high recurring income. They insist on more careful because of diligence and won’t like to jump on board due to any kind of fancy website or endorsement.

Therefore, when you plan to launch an STO, it is extremely important to get your compliance right and make the necessary documentation available to investors.

The first step that is included in STO marketing is defining your goals. You must explore who exactly you are talking to. If you are working with a good STO development company that also offers STO marketing solutions, then that section should be taken care of by the company.

The second most important step is to create a detailed content marketing strategy for your STO project.

Content is the Voice of Your Brand

Most of the people are aware of the fact that “content is the ultimate king”. Well, yeah! Content has the potential to draw millions of eyeballs globally. If you create and share the right content about your STO project most frequently on the different mediums, this will help you gain trust amongst the global audience.

An Active Blog – The Actual Game Changer

Blog posts and detailed articles can help you to provide relevant knowledge to the whole world and educate potential readers through your own personal articles. It is highly recommended for companies as well as start-ups to maintain an active blog through which they can provide development related updates or educates the entire community about their niche.

You can begin with updating just 2 blogs or articles in a month. Setting up a blog is quite a simple task. It should not take longer than 1 hour. Today, there are many easy-to-use tools are available. For example, WordPress.org is quite handy tool. You can also go with third parties like Steemit and Medium.

Many of us believe in the fact that setting up a blog will not attract much traffic in the beginning and can waste a lot of time. That is actually true – a blog may take 3-5 months to gain desired traffic initially, but it will be noticed if you create a high-quality blog content.

Use Third-Party Blogging Platforms

If you are looking for the faster results, you can trust renowned third-party blogging platforms to get your articles published. Medium and Steemit are one of the best options to consider. Getting assistance from such platforms, you can expect your content exposure to millions of readers. Steemit is the blockchain platform that is widely used by many Cryptocurrency enthusiasts. Medium is one of the most professional platforms that expose its content to more general readers. The final decision is on you, depending on who you want to reach. Many companies offering STO development services trust these third-party platforms for blog publishing and better results.

Social Media Post Content

Social media is considered as one of the best ways to connect and reach the potential audience in any niche. Content is needed everywhere – in the social media posts, videos, images, and infographics. In other words, the strength of your social media page is actually determined by the strength of your content. Social media posts are concise, impressive, and interesting. Include quotes, ask questions, and share your achievements, polls, and funny post on your social media page to get more customer engagements.

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Impact of book building and book running on your fundraising

 

Book building is a crucial step that cannot be skipped for your fundraising project. To state the obvious, book building is that process by which you arrive at the price of your security as a company when offering shares for sale in an IPO. It is firmly established that book building is the most efficient and popular process to price your securities in the market. It comes before reaching out to IEO Consulting Services, STO Development Services or ico development services. Obviously, you have to find out and establish your price before going about trying to streamline what you have to offer. You separately require ieo development service for your IEO, STO Consulting Services for STO and ICO software development for your ICO project, but book keeping and book running are relevant and constitute a crucial part in all these. Therefore, let’s look into the impact book building and book keeping have on your fundraising.

Book Building

Credibility Evaluation

Credibility is everything when it comes to business. People invest in you because they believe in you. They believe that your company has potential. And it is important that you get a feel of what the general public perceive about your product. Book building acts as an evaluation mechanism and helps ascertain the worth of the security you offer and your company’s credibility in the public sphere. Also, the entire process follows a wholesale basis.

Price Determination

To make it big with your offering, it is imperative that you know where you stand with your instrument. Book building facilitates a realistic, accurate perspective of investors’ response and commitments to the issue, thereby giving you clues and information to help you arrive at fixing a price for your instrument.

Demand Indicators

You are into this business for making some profit, if not a bulky one, in the first place. You need enough funding. You expect a handsome return of the time and effort you put in. Therefore, fixing the best price possible is the logical step towards that direction. And accurate perspective of the demand coming your way is the key. Only then you can get a picture of the highest market price for your shares and securities as well as the level of demand from promising investors.

Issuer’s benefit

Book building benefits the issuing company as it offers a scope for realistic pricing of the issue, the final price being decided 11 to 12 days prior to the opening of the issue. Another benefit is that book building offers the company an early access to capital. Furthermore, apart from bringing in liquidity and buoyancy, book building also facilitates a timely flow of information regarding issues, investors, syndicate members and lead managers.

Avoidance of the uncertain

For businesses, uncertainties impose risk and risk spells loss of profit and worse, even loss of capital, down the line. Therefore uncertainty is something a company or business cannot simply afford to accommodate. But with book building there is a possibility for a pre-sale of the issue which grants an early snapshot of the scheme of things, thereby doing away with uncertainties that may loom over the fate of the issue. Also, apart from facilitating transparency of allocation, you can enjoy a certain degree of flexibility with the price as well as size of your offering.

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Security Token Offering Licensing – Explained

 

Unlike other fundraising tools, Security Token Offering generates security tokens that operate within legal boundaries. A token is classified as a security token when there is an expectation of profit from other’s efforts. If an initial coin offering does not obey specific regulations, it can subject to penalties. Nonetheless, if all the regulations are effectively met, these tokens have strong use-cases. A security token is equivalent to an investment contract. In other words, a security token is an investment contract that showcases officially authorized or legal ownership of a digital or physical asset. It is important that this kind of ownership should be verified within the blockchain. Once the ownership is verified, the security token owner can use them as collateral for a loan, store them in various types of wallets, and trade away their security tokens for other assets. 

The Actual value in security tokens lies in how they can redefine the true meaning of ownership. Token owners can democratize assets and also distribute them amongst many people across the world. Let’s understand this with an example; instead of buying a gold coin, which is any way out of many people’s budgets, it is now clearly possible for around one hundred people to own the fractions of the gold coin. Sounds interesting? 

If you are willing to offer STO Launch Services or hire some, you have to be concerned about their licensing.

There are certain kinds of regulations that your security token must be subjected to. 
Nowadays, an increased number of blockchain companies are willing to plan and launch a security token securely as investments. Nonetheless, many of these companies have discovered that a successful launch of STO can be an overwhelming task. The process involves consideration of a wide collection of legal aspects. A few of them are explained below. Please take a look!

Incorporation of Security Token Issuer

The jurisdiction in which a security token issuer incorporates can have a deep impact on the structure of STO. Picking up an appropriate jurisdiction of incorporation of the issuer will depend on several factors like the physical location of the asset or interest that you want to tokenize, the countries or country where the founders of the issuer are considered residents for tax purposes, income-tax rates, and applicable tax laws. 

Choosing an appropriate jurisdiction will also depend on the type and classification of such interest, marketing strategy, whether the issuer needs access to any banking services or appropriate security regulations, and other applicable laws. The issuer of the token should know and discuss several jurisdictional attributes with a well-informed legal representative and tax advisor before picking where to incorporate.

KYC/AML

Nowadays, many of the countries impose AML (Anti-Money Laundering) and KYC (Know Your Customer) prerequisites on all financial businesses, including issuers of security tokens. These prerequisites ensure that the funds that are used in investment of security tokens have not come from unlawful resources.

KYC screening has to be done in order to comply with securities laws. KYC process is also an important step in knowing which investors should also undergo the accreditation process.

Security Regulation

Security tokens must be sold or offered after registering with SEC (Securities and Exchange Commission). However, registration can be a slow and overwhelming process. Some of the most popular legal exemptions that are used by many issuers for their token sales to be exempt from registration are explained as follows

Regulation A+

Regulation A+ is categorized into Tier I and Tier II. According to Tier I, the issuer can raise to 20$ million and it does not pre-empt state laws of registration. And according to Tier II, the issuer is allowed to rise to 50$ million and it can pre-empt state laws of securities registration. This is famous amongst STO, but the shortcoming is the lawful expenses of going all the way through the SEC review procedure and ongoing maintaining annual or semi-annual reporting prerequisites.

Regulation CF

Regulation CF is also known by the name of crowdfunding exemption. It allows Security Token Offerings to be sold or offered to accredited as well as unaccredited investors. It has gained immense popularity amongst start-ups that are focusing on raising seed capital from unaccredited investors. The downside is that there is a limit on raising capital.

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Planning a systematic road map for immaculate IEO

 

What is an IEO?

Initial Exchange Offering is a technique of crowdfunding in the cryptocurrency market. The entrepreneurs list their tokens through exchanges for investors. The funds collected from the investors are used in the project. It is like an ICO (Initial Coin Offering) through exchange platforms. It is a golden opportunity for all the young entrepreneurs with innovative project ideas. This platform is for everyone who wants to raise funds to start their own business.

Do you have a business idea? Do you want to raise funds to start your own business? Are you looking for a platform with no strict rules, easy compliance, no fixed time, lower fees, easy and quick crowdfunding? Well an IEO is the answer to all your questions. If you want to launch an IEO successfully, you have to follow some simple steps.

How to plan a road-map to launch IEO?

If you want to launch an IEO, you have to plan a road-map for all the stages. Most of the rules and requirements depend upon the exchanges like fees, time, duration, etc. However, you have to follow some standard guidelines for your project. You can also approach various IEO development companies for support. These companies specialize in provide IEO solutions to the clients.

The road-map to launch an IEO is divided into four stages for better understanding.

Stage 1: (Preparation Stage)

The exchanges review the project before listing. If they find any misleading activities in your project, it will be rejected. You have to make sure your project follows certain guidelines. Here are some guidelines to ensure your project credibility.

• Token: The first step is to design the token model. The investors will invest in the tokens, so you have to provide a description of token model, features, long term value, functionality and standard. The token model should fulfil all the token issuance conditions and specifications.
• Documentation: All the necessary information about the project is to be disclosed in the white paper. A white paper contains details about the project. Details like structure and road-map of the project, technical project details, architecture, financial market, token distribution and project team and advisors are to be disclosed in the white paper to gain the confidence of the investors.
• Business Plan: Business plan means how the business will run to achieve the goal of the project. It includes information about the goals, policies, operational model, machines and tasks. 
• Revenue projections: It will include a financial model of the business. All the costs, expenses, incomes, capital, revenue system are studied to project the future revenue of the company.
• Team: The team plays a very important role in running the business. So there should be strong team members and advisors in the business who can work together efficiently.
• Public Relations: The business should have a strong PR and social presence to gain investors. The PR team should use social media platforms to promote the business.
• Partnership: To get approved by the exchanges, you need to have strong, established partners to support the business. If the partner company is reputable, your business will earn the same reputation.
• Legal requirements: You should hire a legal expert to handle all the legal work to reduce the risks. Procedures like KYC compliance, risk assessments and compliance can make IEO process easier.
• Smart-Contract: It is the base of blockchain transactions. It has to be secure. Even a small, vulnerable spot can lead to loss of funds. A secure and robust smart-contract is the key to reliability.
• Marketing: Design a marketing strategy that suits your business. Most of the successful IEOs have a strong marketing strategy to promote the business.

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