What STOs can offer to the Blockchain Industry

FIAT Financial
Fiat Exchange
Published in
3 min readMar 23, 2020

If you can recall, the very first security token offering was actually held by the Blockchain Capital nearly three years ago, on April 10, 2017. The said STO then miraculously managed to raise around $10,000,000 in one day! Imagine that. This was one of the main reasons why STOs have garnered so much traction for the past two years following the first’s huge success.

With the drastic growth of STOs, it has overall managed to raise a whopping $562,000,000 by safe and simple issuance of shares through tokens. Tokens which actually have many sets of merits and advantages. Process Management for example, is very efficient with STOs due to its real-time ledger of asset ownership available to provide investors the ability to easily manage and automate dividends, profit-sharing, and other related factors. Initial Issuance Credibility is also the deciding factor with most investors as a lot of people have already been scammed with Initial Coin Offerings. Since most projects on their end failed to deliver, investors eventually lost interest in the promises of ICOs. This is the biggest difference between the two as all STOs strictly abide by and follow the regulations set forth by the SEC and all other crypto regulators in the world, thereby bringing much needed credibility.

Lower Administrative costs is also a great boon for STOs due to its share creation and distribution processes made easier by developing tokens directly to the appropriate account its meant to be at and distribution to investors via the blockchain system. It’s not only process-efficient but cost-efficient as well. Secondary Trading is also welcome and supported for more liquidity. Security tokens are traded only on uniquely specialized security token exchange platforms so investors are assured a safe and convenient way to liquidate these assets. These platforms also offer a 24/7 trading uptime so security tokens can be traded without any interference even in the middle of the night or so.

A major benefit we’ve yet to tackle which puts it on another level as compared to other traditional forms of investment is its ability to attracts high-value investors. Mainly due to lifecycle process being more simplified, STOs tend to attract a huge set of investors for every offering.

In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.

At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.

While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.

If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com

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