Why is Secondary Market an important part after fundraising completion

 

STO Development Services use blockchain, a very promising technology to support crypto assets including security tokens, utility tokens, and others. These assets, especially security tokens are an effective and interesting solution to get an access to the secondary market for private token issuers.  

Security Tokens, subject of the federal security regulations and derive values from tradable assets are categorized as Security Tokens. A security that is commissioned around the globe and world agree upon it as a backup. STO Consulting Services provide these securities that are similar to bonds,the equity in a brand, or others. Security Tokens are the assets that show the ownership right. The holders are entitled to voting, dividends, profit share, equity, and buy rights back. 

STO is an essential element to reach the right investors and to build trust that helps to raise funds in the first place that increases its reliability in the secondary market.

Relation Between Fundraising and Secondary Market

As the crypto world is not immune from frauds, regulatory framework demands started increasing to boost the confidence, security, and credibility among the investors. They  are getting more interested in the secondary market as opportunities exist to acquire the STO from financial institutions and get large funds by seeking potential buyers. Tokenizing the security has improved the liquidity that can engage many more investors around the market. Security Tokens have also increased the market efficiency, fractionalization of bigger assets, and lowering the fees for issuing. Security token offering has the potential to create a variety of applications if new ventures meet the regulatory obligations that are required for engaging the investors. But once it has raised the fund in the primary market,  the responsibility is multituded because now it is an opportunity for investors to get benefited in the secondary market from their investments on your STO.

Secondary Market an important part after fundraising completion

Secondary market is a platform for the investors where they are able to sell the security token offerings in the open market.  After crowdsale, a process of raising funds by allowing to sell a specified token, you need to provide support services to provide prompt assistance to the community whenever they need. So that you can manage the investors expectations in a transparent way. 

Investors have trusted you and put their money in your venture. They must have their own business expectation with your venture. That is your responsibility to keep them updated with the progress of the venture and STO value in the market.  

Here are some reasons why and how you should not neglect the secondary market after fundraising is over. 

• Indicator of Investment health: The performance of STO in the secondary market is the indicator of your investment health. Secondary market steers the STO price toward its current and actual value via two important constraints of economic supply and demand. It is also an indicator of your investment or STO health in the market. A decrease or increase in the prices of STO is the signal of weakening STO health or enhancing STO health respectively.

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How Market-Making Can Boost the Traction for Your Security Token

 

Are you ready to invest your time in an STO project? Do you have a game plan for its launch and traction? Before launching your STO, you must know how a security token offering can gain traction. This article will help you know how can be possible with the help of market-marking. Let’s get started!

Understanding the Concept of Market-Making

Nowadays, you can find many market makers that often brokerage houses providing trading services for investors with the aim of keeping financial markets liquid. Speaking of liquidity, it describes the easiness with which security or asset can be quickly bought or sold in the market without affecting its market price. The most liquid asset of the market is cash universally since it is quickly converted into other assets.

Since market-making contributes the most in ensuring there is enough liquidity in the markets, it is quite evident that without market makers, there will be a little liquidity, and investors who want to sell securities will be unable to gain profits due to the lack of potential buyers in the market.
Therefore, market makers keep market well-going.

Without market makers, the transactions may be insufficient, and overall investment activities will be less. Hence, your token may not be able to gain traction.

How Does Market-Making Work?

The market marking indicates a keenness to buy and sell the assets or securities of a definite set of companies to broker-dealer firms that are member firms of that exchange. Every market maker showcases buy and sell quotations for a defined number of shares. Once a buyer receives the order, the market maker sells off his shares’ position from his inventory, in order to complete the order. In other words, market-making allows a seamless flow of financial markets by easing out the buying and selling for investors.

Moreover, a market maker should be responsible for quoting prices for buying (biding for) and selling (asking for) securities. They are also responsible for quoting the volume in which they want to buy and sell, and also the frequency of time it will quote at the best offer prices and best bid.

Market making can help to attract new investors as well as experienced traders. It can decrease the expenses of both traders and investors. Allowing the better conditions for listing on new exchanges, Marker making also facilitates seamless selling of unsold tokens. Even if you are thinking of advancing the position of security token in the listing of exchange you have chosen, then choosing market making can be a great idea for you.

How Market Makings can help In Gaining Traction for Your Token?

In 2019, the US market was facing an issue of lack of liquidity in their stocks across 13 exchanges and other 40 execution venues. The massively decreasing cost of operating and launching online order crossing systems has resulted in a sudden increase of decentralized pools of liquidity and price breakthrough in securities listed outside of the most renowned 100 traded names. Such a fragmented trading situation created a thin layer of liquidity that was easy to rupture.

Understanding why this happened is important for the crypto domain. The power to permanently send some blockchain assets to anyone, without any permission, simply indicates the beginning of a global crypto exchange. All you need is to get a server and marketing shove. This is no surprise that CoinMarketCap lists around 234 exchanges and top exchange only has 5% of the market share of everyday volume. Listing an illiquid asset on trading venues without dedicated market making is a sure shot recipe of disaster.

Now, let’s discuss how market making will help in the traction for your tokens.

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List of Wallet Protocols You Must Have

 

Do you know where traders and investors store their cryptocurrency? They store it in a digital wallet, which is popularly known as a crypto wallet. If you want to trade crypto, you need to own a crypto wallet.

There are three critical components of trading in a crypto market, i.e., Cryptocurrency, Exchange, and Wallet. As we store our fiat currency in our wallets or bank accounts, similar cryptocurrencies are stored in a crypto wallet. Because the currencies don’t have a physical existence, they are not physically stored in a wallet. Instead, you get a set of private and public keys that help you to transfer cryptocurrencies from one Wallet to another. 

There are different types of wallets where you can store your crypto. At the same time, some wallets are connected to the internet; some works offline. But most of these wallets are vulnerable. 

Recently, there have been many cases where investors lost their crypto holdings because of vulnerabilities in the wallet protocol and exchange software. As all your currencies are stored in a wallet that is connected to the internet, there are many risks. To avoid this, you can use White Label Exchange Software and Secure Crypto Wallets.

If you want to keep your Wallet and currencies safe, follow our guide. In this post, we will discuss about the wallet protocols you must have to keep your cryptocurrencies safe.

Crypto Wallet

It is a digital wallet where you can store your cryptocurrencies. You can use this Wallet to send and receive crypto. There are different types of wallets. Some wallets support only a single currency, while others can be used for multiple currencies. A wallet can be a physical device or a software program. It stores your secret keys, which are used to make transactions. Wallets are mostly developed by the Crypto Exchange Development Company. These companies develop exchanges as well as wallets.

Types of Crypto Wallets

Here are the different types of crypto wallets.

• Desktop Wallet: These wallets can only be downloaded and used on desktop or laptop. Once you download it on your computer, you can only access it from there.
• Mobile Wallet: You can use this Wallet from your mobile phone. You can download it on your smartphone and access your Wallet from your phone.
• Web Wallet: These wallets are directly connected to the internet. The Wallet provided can control your wallet functions. For example, when you store your crypto with centralized exchanges. While trading with the White Label Crypto Exchange, you can use any type of Wallet.
• Paper Wallet: Here, you can print your private and public keys on a paper and keep it with you.
• Hardware Wallet: It is a device that stores your private and public keys. It is very safe and secure.

Crypto Wallet Risks

Funds are always stolen from places where it stored. And because you store your crypto in your Wallet, hackers will always try to find vulnerabilities. Once they find it, all your funds will be gone. Crypto wallets have always been prone to security risks. Here are the different types of security concerns related to the crypto wallet.

• Malware
• Phishing
• Virus
• Key Logger
• Remote access to device

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How to plan a long-term roadmap for continued success

 

If you are indeed looking forward to hosting successful ICO from scratch, then it is necessary to understand that it will turn out to be much expensive. When there is the circulation of money coming out from nowhere, buyers and investors start getting rewards for their trust. Look forward to generating a million-dollar ICO, the fundraiser and kick starters play an essential for any new project that you work on. ICO development requires lots of hard work, and wits launch a successful one.

Important aspects of an ICO Roadmap

In the blockchain era, it is believed by many that cryptocurrency could be the upcoming frontier finance worldwide. In the exchange of cryptocurrencies such as Bitcoin and Ether, companies begin launching are digital converter token to sell the same to its investors. For the crypto platform launching, ICO is regarded as the key to success. An ICO software development is the ultimate decision to achieve a successful roadmap to launch an ICO. So then, you are interested in processing the launch of ICO, you require focusing on these four vital stages.

01 Preparation

Idea That Fits For An ICO 

It is very important to understand the market needs when you on initiating a successful ICO project. Yours have to also and ensure that your project should be the exception and then your competitors. Understanding the concept in terms of your experience and belief requires the execution of a full proof plan. As blockchain works as a theme for some time now, it is not necessary that your products and services should also belong in the blockchain as most of the ICO projects rely on blockchain. If you want your idea to be a good yet successful ICO development, you have to create a plan that is accepted globally for crypto investors worldwide.

Some successful ICOs in the blockchain projects 

Companies such as NXT, NEO, and Ethereum are worth billions of dollars. There are around 1600 coins available right now in the global market of blockchain. Here the majority of the ICO tokens end up being converted into Ethers as it is based on the ERC-20 standard.

A finite list of indicators that can surely be a part of your next brilliant idea in terms of exemplifying ICO development: 

• A decentralized product
• Use of the blockchain technology for development
• Involvement of multiple parties except for a single company
• A roadmap should be global with the potential project
• Make people understandable about the value of this platform easily 
• Encouraging demand and supply of these tokens as a part of your ecosystem 
• If you think to stop working on the same, definitely someone will take over it

At the initial stages, the ideas that you might come up in the ICO world, you require to have a great understanding of the market fluctuations along with the targeted audiences and deliberate competitor analysis. Once your idea becomes firm began working on drafting it into a whitepaper format.

2. Draft a whitepaper

A whitepaper should cover entire market analysis from the objective of the project, technology architecture, legal issues, token distribution, information on the token, development strategy, description of your token, crowdfunding, description on early investors and advisors. Being a technical document read by the investor’s valuable information, indeed not every one of the investors has the same access as you. Once you satisfy at least ten people, you can easily attract good investment towards your project. For creating a professional whitepaper, you have to hire an expert editor for projecting a whitepaper and the technology to work on.

3. Building great teammates

Once you come up with an idea of building a good team with great teammates is a crucial task. The team members with in-depth knowledge on drafting ICO development services can assist in terms of crypto, marketing, developers and legal advisories. With the efforts of the team, you can attract reputed investors and get your product built at the initial process. Once you are done with the team, building you can consult your legal experts.  

 Launch a website; crowd funding will definitely benefit your ICO development.

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What’s the first thing you will consider while choosing a crypto exchange? Most of the people go either after reputation or Fees. But there is more to crypto exchange than just these two factors. 

You need to check the KYC/ AML process, Leverage options, Volume, Prices, Insurance, Asset Selection, Fiat Exchange and most importantly, Security of the Exchange. Although the reputation and fees of the crypto exchange are important factors, you need to make security your first priority. 

We all aware of the scams and frauds related to crypto exchanges. Many people lost their funds due to inadequate security provided by exchanges.

So to help you secure your funds, we are going to discuss about security of crypto exchanges. We will also guide you on how to assure the security of your crypto exchange.

Crypto Exchange

It is a platform where you can purchase and sell cryptocurrencies. You can trade using cryptocurrency as well as fiat currency. All you need to do is create an account with exchanges. You can trade on multiple exchanges as well. It works like a trading platform in a crypto market. Crypto exchanges are involved in trading more than 100 billion dollars in a month.

As the market is growing, the number of threats are increasing as well. So you need to be really careful while choosing a crypto exchange. Make sure it is safe and secure. If you want to protect your funds, you can choose a White Label Cryptocurrency exchange platform. As it is decentralized, there are lesser risks.

Crypto Exchange Security Issues

More than $1 billion were lost in the last few years due to poor security of crypto exchanges. Even after such recurring hacking scams, only 46% crypto exchange have high-level security. You need to pay extra attention to the security factor because of all these reasons.

• Decentralized network: As it is decentralized, the transactions cannot be reversed. The funds lost will be lost forever.
• Third-Party: Most centralized crypto exchanges are the third party. When you deposit funds with exchanges, the entire funds are in a third party’s control. It is risky.
• No insurance: Exchanges many not provide insurance cover for loss of funds. Even if they provide, there might be various conditions and clauses.

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Demand for Crypto Trading As Per the Current Legal Compliance Outlook

 

Nowadays, we are inevitably moving towards a digital eco-system. The global economy is entirely shaping itself while adopting the future benefits of the digital eco-system. Everything, from investments to transfer of money, is going paperless. And a new and promising addition to the digital money domain is Cryptocurrency. Just like other ordinary currencies, Cryptocurrency is also a medium of exchange, except they are designed for exchanging digital information. Cryptocurrency is defined as a decentralized digital currency that uses cryptography for security making it complicated to counterfeit. Since Cryptocurrency is not issued by a central authority, governments cannot take it away from you. 
Invariably, more and more investors are showing their interests in white label crypto exchange software development companies or white label exchange software developers to put their money in the right direction.

The Future of Cryptocurrency

Since institutional money is entering the market, there is a big evolution coming up in Cryptocurrency. Plus, there are countless chances that crypto will be floated on the Nasdaq, which would add value or credibility to Blockchain and its uses as a beneficial replacement to conventional currencies. Some economic analysts predict that all crytocurrencies are needed to be verified exchange-traded fund (ETF). An ETF can make a lot easier for people who want to invest in Bitcoin, but there still requires to be the demand to want to make an investment in crypto, which might not automatically be created with a fund.

What leads to The Demand for Crypto Trading?

When cryptocurrencies are generated, all definite transactions are stored in a public ledger. All identities of people that own coins are encrypted to make sure that the legitimacy of the record is intact. Since the currency is decentralized, you can own it. The government or bank cannot take control over it. Therefore, you do not have to worry about fraud.
In addition to this, ledge ensures that every transaction taking place between digital wallets can calculate an accurate balance. Every transaction is cross-checked to ensure that the coins in use are owned by the existing spender. This public ledger is also known as Transaction Blockchain. Blockchain technology makes sure all digital transactions are secured with encryption and smart contracts that ensure the entity cannot be virtually hacked. With such a level of security, Blockchain technology is balanced to impact every domain of our lives. Therefore, there is no such theft of any identity. That is why opting for crypto trading is a seamless option.
Blockchain contributes to the reason behind the added value of Cryptocurrency. Since cryptocurrencies are easy to use, they are in high demand. You will just need a smart device and an internet connection. Instantly, you will be your own bank making money transfers and transactions. Seems easy?
Today, there are around two billion people who can access the internet but don’t have the right to use conventional exchange systems. These people are clued-in for the crypto market. Today, there is no other electronic cash system that enables you to own your account easily. With Cryptocurrency, this is possible.
Many individuals are more comfortable while working in a virtual world in every domain and the crypto market is driven by the virtual way of making transactions or trading. That is why people would be more interested in the crypto space. One of the biggest advantages of the Cryptocurrency industry is to bring people together from across the globe and helps them work together in a virtual space. Industry participants do not have to worry about getting their own working space together.

Crypto Exchange Demand as Per Compliance in Asia

Invariably, more and more people are investing their time to establishing crypto exchanges in Asia due to uplift in the Bitcoin derivatives market in 2019. Or in other words, there is steady growth in interest from the Cryptocurrency space. Crypto exchange derivatives have considered Asia as their new home. 

Countries like South Korea, Singapore, and India have a great potential for the crypto market. Asia has built a good reputation in the domain of Cryptocurrency. There are many cryto derivatives exchanges that are operating in Asia and they have witnessed a good growth patterns recently. For countless reasons, Asia will be one of the strongest crypto and blockchain hubs in the upcoming years. According to a recent statement made by exchange Deribit, crypto market should be easily available to most, and announcement of new regulation would also put high barriers for most of the traders.

Crypto Exchange Demand as Per Compliance in America

Recently, SEC Commission Hester Peirce, talked about uplift in the demand for Cryptocurrency. She said, there is a good increase in the demand for Cryptocurrency as more and more investors are seeking to diversify their portfolios. She also mentioned while noting the Covid-19 pandemic, we are witnessing more interest coming across from institutional quarters than we have in the past few years. More and more people are also tending to invest in the crypto space. 

She also explained about how people are now more comfortable working in the virtual space. People are now more likely to turn more interest to the crypto domain. Before the coronavirus pandemic, one of the biggest advantages offered by the crypto industry was that it brings together people from around the globe and helps them to work with each other virtually. People working in crypto industry do not have to be in the same place to work together.

Crypto Exchange Demand as Per Compliance in EU

Regulatory bodies in the EU are looking to tighten their rules and policies on crypto exchanges and crypto assets this year. The crypto markets in the EU have also been hit hard by the coronavirus pandemic. For instance, the Bloomberg Galaxy Crypto Index fell by 58.5% between the months of February and March, which is much bigger than the 33.7% in the FTSE 100 during the same time period. 

These events will increase costs and will also change the demand for trading cryptocurrencies. All crypto exchanges will need to be adapting to both factors, but some small-scale exchanges, specifically those with less strong security procedures, may find these shocks too much to handle.

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How did Cryptocurrency emerge in trading

 

Cryptocurrency is the new buzzword in the digital sphere for a quite long time and many people around us believe that it emerged out of nowhere and became a driving force in the technological and financial world. However, this is not the case. Cryptocurrencies, aka digital coins, can make a paradigm shift to the way we deal with existing payment methods and since its inception, cryptocurrencies are evolving and becoming huge with each passing day. Cryptocurrencies with centralized exchange solutions, enable users to store and share digital currencies in a secured and highly protective environment.

In the meantime, Cryptocurrency is a relatively new medium of exchange in that it is a digital or virtual currency that leverages encryption to facilitate the transfer of funds. On the other hand, blockchain is a shared, digital public ledger on which transactions of cryptocurrencies are carried out. The two terms, Cryptocurrency and Blockchain, are used interchangeably because they share a very unique relation but they are not synonymous in any way. Blockchain is the medium on which Cryptocurrency is operated while Cryptocurrency, per se, is the means or instrument of exchange. In other words, Blockchain is the ecosystem that lays the foundation for Cryptocurrency related activities. Which means the latter cannot exist independent of the former. Blockchain, however, can operate as a separate and distinct entity since it has other industry applications apart from facilitating Cryptocurrencies.

The circumstances that led to the rise of Cryptocurrency is an interesting one. Several decades went into the realization of a finally viable digital currency. The noteworthy part of it all is that Cryptocurrency was nothing more than a concept for quite a long time. Digital currencies entered the domain of human interest with some early proponents in the 80s and 90s mooting the notion of a currency that departs from the institutionalized conventions of traditional fiat currency.

Then several attempts were made to realize the concept but they were to no avail until Satoshi Nakamoto entered the scene in the year 2008. The same year, a paper called Bitcoin – A Peer to Peer Electronic Cash System surfaced under the pseudonym of Satoshi Nakamoto. This signalled the birth of Bitcoin, the first viable digital currency, followed by the likes of Ethereum. Despite the limited number of takers in the initial years, Cryptocurrencies became a big hit with the financial world overtime.

In retrospect, the year 2009 marked the induction of Bitcoin into the blockchain ecosystem. For the first time, mining of Bitcoin took place. Bitcoin scaled a notch higher in the following year, that is, 2010, by acquiring a bona fide monetary value and becoming traded. As the narrative goes, a Bitcoin bluff swapped 10,000 Bitcoins for two pizzas and laid the foundation for a series of similar transactions that led to the mass reception of Cryptocurrencies as we know it. As such, with the inception of Bitcoin, the notion of a decentralized and encrypted currency gained more and more traction and materialized with the rise of alternative currencies, aka altcoin, each one better than the previous. And we can say that the integration of Cryptocurrency into the financial world is nearing maturity.

The second generation of cryptocurrency

In the initial days, some people came up with cryptocurrencies other than bitcoin which were doing the same thing as bitcoin did, but in some different ways.  However, technology giants came to realize that the Blockchain technology has more potential and the versatility than that and can be used to create centralized cryptocurrency exchanges to validate and mediate other Peer-to-Peer transactions.

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