4 Benefits of Security Token Offering for Security Token Investors.
While investing in traditional token offerings only come with eligibility, there have been a series of scams due to the fact that the current market is not regulated. There are hundreds if not thousands of benefits for investors investing in security token offerings. These include but not limited to security, profitability, equity, and eligibility.
Securities laws might be different by jurisdictions. However, their concept of formation is to protect investors, maintain market integrity, facilitate capital formation, and so on. Investing in a security token offering means obtaining the legal rights to complain about an issuer to the securities regulators in question. This is where the Private Placement Memorandum [ PPM ] protects both issuers and investors.
Investing in a traditional token offering returns nothing to investors other than trading. But in security token offerings, this basically means investors are entitled to receiving dividend payments, sharing profits, receiving interests, and so much more. Fine, if unregistered securities a.k.a. utility tokens issue dividends, etc. that doesn’t mean they are security tokens. The dividends being issued are being done illegally.
When an investor invests or participates in a traditional token offering, they become a tokenholder, but investing in regulated security token offering qualifies investors as shareholders in the issuing company and not an ordinary tokenholder as in traditional token offerings. Being a shareholder in an issuing company of a security token offering means an investor owns a part of such company.
Traditionally, investors cannot buy or sell securities such as stocks in some countries if they are not a citizen or resident of those countries. In the case of security token offerings, regardless of where an investor comes from or lives, yes, THEY CAN!
Whitelist0x is what it is :: a Whitelisting Firm. That says it all. However, there’s more beyond the name. Whitelist0x focuses on helping small businesses go public to raise funds via the security token offering mechanism. Unlike similar security token platforms that only offer technical solutions, Whitelist0x enables private companies to launch extensive public relations, integrated marketing, and investor relations campaigns, draft various offering documents such as prospectus, file with securities regulators in the U.S. and various other jurisdictions, and then issue security tokens that represent shares and allow shareholders a stake in their company’s equity as well as a share in their profits in form of dividends, interests, and so on.