Legal Fund Raising Security Token Economics Blockchain App Factory

By making use of the Blockchain App Factory, it is possible to "Take your venture Public through STO." You can legally raise funds for the venture via International Accredited Investors.

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At Blockchain App Factory they are trying to make a difference in their security tokens by helping one to create security tokens on their own blockchain.  The dividend structure can be tracked via the STO management dashboard.

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The comprehensive checklist was provided by them during the pre-launch.  When it is about equity, an STO is created where each token is backed by the stocks of your company.  The holders of your company will thus have voting rights, and dividend issuance will be right at par with your actual stockholders.

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When it is about reserve assets, the companies who trade in the real world like those who provide for gold, real estate and more will be able to launch their STO.  The reserve of the stated assets will back these tokens.

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When security tokens are created for debt, the funds are raised by using a promise of payback.  The promise is in this case used to attract the debt investors.

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The aspect to be tokenized will be tokenized for the liquidity needs in a way to suit the fundraising requirements.  The growth plan of the token during the long and short term should be discussed with appropriate security token economics.

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The first step to creating a security token is to identify an asset that you are looking to tokenize.  The asset to be tokenized can be equities, asset-backed tokens, VC Funds, and crypto-bonds

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James Harper, Director of Sales, states that security tokenization could reserve asset, real estate, and even debt.  Equity can as well be tokenized by making use of Equity Token Offerings (ETOs)

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He further added, "We believe that ICOs were driven by hype in an unregulated manner. However, legal STO marketing involves making the tokens as the most attractive investment option as the promises cannot include price projections."

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The economics of the security token should be with a long-term vision.  Creating security tokens in your own blockchain saves you from congestions in the network, and it as well removes hurdles like gas prices.  The transactions thus become very cost effective for your investors.  STO management dashboard can be used to track the dividend structure.

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The user is whitelisted as an investor through the KYC/AML APIs which is to be in compliance with GDPR.  This ensures the safety of the security tokens and the data as well.

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The backbone of the security token company is the team. For instance, Michael Abib, Co-founder at Leaseum Partners at the Blockchain World Summit further added, “The background of the team was on the institutional background.  I was in investment banking before.  My partner and CEO were into private equity.  The other founder was in investment banking. So we went on to build a whole institutional team.”

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