We all know that Blockchain is the fastest growing technology. With the support of blockchain technology, many crypto-based assets were introduced. Among those crypto assets, a security token is considered as a prominent one because of its credibility and security.
Most of you people will be wondering what security Tokens are?
Security tokens are tokenized assets. They are digital forms of traditional securities that rely on a blockchain. These tokens could represent ownership of a fraction of any valuable asset, like a car, real estate, or corporate stock. Security tokens offer financial securities under Securities exchange commission (SEC) Regulation. These tokens provide financial rights to the investors that are written in the smart contract.
Types Of Security Token & Its Benefits
The security token is generally classified into 3 types. Equity Tokens, Debt Tokens, and Asset Tokens. Let’s see what they are all about and also their benefits.
Equity Tokens
Equity tokens are a type of security tokens that state ownership of an asset like company stock or debt.
Benefits:
Proven
Keep Control
Feel Secure with Regulations
Debt Tokens
Debt tokens are equivalent to the short-term loan on an interest rate on the amount loaned to a company. Steem is one of the examples of debt tokens, which is required to purchase Steem Dollars.
Benefits:
Fractionalization
Universality
Futures
OTC Trading
Composability
Asset Tokens
An asset token is a token that is built on the blockchain platform that is associated with a tangible or an intangible object of a certain value.
Benefits:
Immutable
Accessible
Cost-Effective
Transparent
Divisible
Since we have seen the various types of security tokens. These tokens are created for various purposes. But, particularly they are used for launching security token offerings. It is one of the preferred crowdfunding techniques in the crypto space. Many crypto investors trust STOs compared to the other crowdfunding platforms. To launch STO, you fundraisers need to create security tokens from a reliable STO development services provider.
I have consulted many business experts & Blockchain Advisers. Based on their suggestions & self-analysis, I have chosen CoinsQueens. Coinsqueens is known for its STO development service providers in the current market. CoinsQueens has built their trust among their clients by successfully delivering 50+ crypto projects on time, Bug-free with a 100% customization facility according to their business needs.
If you are interested,
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Get a free consultation of their STO development services @ coinsqueeens.com