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Showing posts with the label security token offering

What is a Security Token Exchange? - Crypto app factory

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When a token is subjected to federal security regulations and can derive its value from an external, tradable asset, it is categorized as a security token. It is true that the process can seem complicated, but there are a lot of benefits with a security token issuance. Tokenizing securities improves the liquidity of underlying assets which can engage more investors. Security tokens also come up with other benefits like increased market efficiency, lower issuance fees and fractionalization of larger assets. If a startup meets the required regulatory obligations, the security token offering  can create a vast potential for the variety of applications. Two types of Security Token Exchange: (1) Utility Tokens:   These type of tokes are used for creating Initial Coin Offerings  ( ICO ) for raising funds. These tokens does not equate to a share in the company, but can be used to facilitate a particular event, transaction or value in the operations of the com...

Real Estate Tokenization - Crypto app factory

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What is Real estate tokenization? Real estate Tokenization  is the process of digitizing the value and the ownership of property into multiple fractional tokens that can be distributed among investors across the globe. This gives the holder of the tokens the right to own a portion of the property legally and the creator of the token, increased liquidity of funds. The advantages of Tokenizing a real estate asset is to increase investment opportunities by bringing in a large pool of investors around the world, who would want to invest in real estate in other countries. Using a Real Estate tokenizer you can tokenize any Commercial properties and Residential properties. Cities like Dubai are miles ahead and have already tokenized some of their properties so interested investors can invest in them. Why is Real estate Tokenization the next big thing? Real estate from time and time again to this day are one of the major sources of wealth for many entities be it individua...

Audit Smart Contract

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Smart contracts guarantee total automation, decentralization, and increased transparency of many online processes. But, there is a need to ensure the security of smart contracts too. Smart Contract is a blockchain-based protocol built to facilitate transactions and enforce agreements, removing the need for a middleman. Just like any other contract, a digital smart contract imposes a set of rules on all the parties involved. Once they agree on the clauses and all the requirements are met, the digital contract executes itself. Why Audit your Smart Contract? Hackers can pull digital currencies too. Ether wallets from the Ethereum network got stolen too. Such hacks create significant implications for the cryptocurrency world. To iron out the kinks, smart contracts need to be audited too. Not all smart contracts are as “smart” as we think they are. Security is a critical issue in the case of smart contracts. Recent hacks of smart contracts escalated the matter. An audit from trus...

How to Launch Security Token Offering?-Crypto App Factory

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Security tokens are finding its place in Crypto and advisors around the world have started offering security token offering advisory services.STO can be considered as the new ICO or IPO. A Security token performs the same function as conventional security, except that it confirms ownership through blockchain transactions and also make fractional ownership possible. Security tokens are subject to federal laws that govern securities, protecting investors on some levels. Security tokens are programmable. Since these securities are tokenized on a blockchain,” smart contracts ” can make them act in a certain way, without the use of a third party. Security Token Benefits: Issuance of security tokens under Regulation A+.Regulation D, Regulation S and Regulation Crowdfunding also tends to be significantly cheaper and faster, than conducting Initial Public Offerings (IPO). Tokens classified as securities tend to provide investors with another option of generating dividends as w...