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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...

Tokenize Real Assets by using Reverse ICOs

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Reverse ICO Reverse initial coin offering (ICO) is a method used by existing, established real-world businesses to raise funds and get into  cryptocurrency . These enterprises have existing products and/or services, and they cater to real world customers. Essentially, reverse ICO acts as an initial public offering (IPO) allowing an existing enterprise to launch cryptocurrency tokens and seek funds through crowdsourcing. The process for a reverse ICO works exactly the same way as for a standard ICO, though it is said that their valuations are easier and more transparent. When people pour their money into a standard ICO , the track record of real-world, established businesses offer a better and more trustworthy proposition for valuing reverse ICOs. Reverse ICOs tokenize real assets The reverse ICO first acquired people’s attention in South Korea. However, many anticipate that it will spread to other nations as investors continu...