Security Token Offering - what is an STO and how to market it!

Blockchain keeps on moving, something new related to the technology emerges every day. And the next big thing in the distributed ledger world is Security Token Offering (STO).
Just like an Initial Coin Offering, STO aims to raise funds by selling tokens. And that’s pretty much all they have in common. Each offering sells a very different type of token.

What is a Security Token?
A security token is a cryptographic token backed by an asset or commodity. They give the token holders owners’ rights such as dividends, voting rights, sharing profits and more. And, for that, they are subjected to federal security regulations.

Security tokens are also tokens that pass the Howey Test. The test says that a token only can be considered a security if it derives its value from an external and tradable asset. If we had to compare, an STO looks more like an IPO.
Developing this type of token is very beneficial for companies and startups that want to go public and reach global investors, sinceSTOs have no geographic boundaries.

Five tips to market your STO

Now that you have an idea of what is an STO, here are some tips for your offering to stand out from the crowd.
Target audience - There is no good marketing strategy without a clear idea of what is the target audience. It is imperative to know the audience you wanna reach, otherwise, you will end up talking to a bunch of people that are not interested in your STO. A waste of time and money.

Educate your potential investors - Marketing is not only about trying to sell the product all the time. It is also about educating the audience and showing them that you are a leader in the market. In order to do that, it is necessary to produce good content.

Build a community - Building a healthy community can take time but it is a very important step in a marketing strategy. They are the ones who will support the STO buzz, your fan base.
SEO - It stands for Search Engine Optimization, a set of techniques that helps your website rank better in search mechanisms, such as Google and Bing. This is important to build an organic flow to your STO and gain traction online.
Don’t forget about metrics - There is only one way to make sure the marketing plan is working: metrics. Monitor and analyze all the data so you can improve and change the strategy if needed.

With Blockchain App Factory, there is no need to worry about planning the STO marketing strategy, or your STO launching. We offer end-to-end solutions for blockchain business, full service so you can only focus on your venture’s success.