Cryptostone Decentralized Worldwide Security Token Stock Marketplace
on fast, secure and compliant P2P Cryptostone STO platform, Decentralized Worldwide Security Token Stock Marketplace, any kind of shares can be listed. In addition, compared to existing platforms, we offer no KYC option, thereby giving access to users without having to risk their documents and identities.
What is a Security Token?
Security tokens are essentially digital, liquid contracts for fractions of any asset that already has value, like real estate, a car, or corporate stock. Using security tokens means investors can expect that their ownership stake is preserved on the blockchain ledger. They, therefore, have a monetary value and represent the right to ownership of assets of a corporation aiming at distributing shares to investors. As a result, they offer the same benefits one would expect from traditional securities like shares, voting rights, and dividends. Because they can be traded on cryptocurrency exchanges, or security token exchanges where information is recorded on public blockchains, the advantages are numerous.
Security Token Offering
The importance of Security Token Offering (STO) is increasingly recognized in the financial world. it utilizes a combination of the blockchain technology and the requirements of regulated securities markets to enhance liquidity of assets and wider availability of finance. STOs are the issuance of digital tokens in a blockchain environment in the form of regulated securities. The blockchain environment improves securities regulatory objectives of disclosure, fairness and market integrity and supports innovation and efficiency through automation and smart contracts.
Why do we need STOs?
Entering a stock exchange through a traditional IPO is a time-consuming and complex process. the process usually necessitates the presence of many middlemen, such as brokers, exchange fees, due diligence, etc., which is costly. Moreover, IPOs cannot be easily bought and traded by investors across the globe. However, an STO attracts global investors and is a viable alternative to traditional methods.
Cryptostone Decentralized Worldwide Security Token Stock Marketplace
These days some companies are eager to offer their shares on a blockchain-based network to fundraise due to its great benefits discussed in the following section. So, we want to provide a p2p STO platform to help them to get easier funds by bringing a p2p network. on Our fast, secure and compliant P2P STO platform any kind of shares can be listed. In addition, compared to existing platforms, we offer no KYC option, thereby giving access to users without having to risk their documents and identities.
Here are three levels for each project/security token to get listed on:
➢ Basic Level Market (BLM), For those who wish to not pay, there is no need to pay to apply, but it might be highly risky to get rejected while there is no control over the admission process, this plan is proper for small size projects/businesses.
➢ Rapid Entry Market (REM), For those who want to lower the risk by paying which is between $10000 to $50000, although there is still no control on the admission process, this plan is useful for medium-sized projects/businesses.
➢ Premium Enterprise Market (PEM), For those who want to lower the risk and increase the chance of success. This plan is proper to medium-large size projects/businesses, the admission process will be held on the blockchain.
STO major benefits
There are numerous stakeholders involved with a security token, including the issuer, buyer, regulator and exchanges. Having access to public markets as a funding source was only possible for the biggest companies in the traditional methods. However, STO has also paved the way for smaller companies to target the public market for funding. It provides investors with a tool beyond speculation, and offers transparency to regulators. With an STO, exchanges can utilize a new business model. Generally, there are seven main benefits of an STO compared to traditional securities:
Security Tokens are Programmable
The major benefit of security tokens over traditional financial securities is that they are programmable, meaning that certain rules can be incorporated within the security token that automatically apply. These rules could be related to dividend release (the longer you hold a token, the more dividend you will get), voting rights (the longer and the more tokens you have, the more voting rights you will get) or other privileges. These rules can effectively be used for incentivizing ownership and ensuring price stability.
Existing securities can only be traded from 9-5 on weekdays. moreover, securities usually require a few days before they are settled. By means of blockchain technology, tokens can be settled instantly or within a few minutes. So, investors can enjoy full liquidity on their assets.
organizations wishing to create an Initial Public Offering have to decide where they want to do their IPO. depending on regulations, market demand or other reasons, it can be done in the country in which the companies’ headquarter are located. with an IPO, an organization can never offer their shares across the world, but security tokens have solved this problem.
Using blockchain technology does not care about borders and startups do not worry about borders and can easily raise funds from everywhere in the world. So an organization can get a higher chance of success due to having an opportunity to offer their security to the global market. In addition, generally large fees must be paid to banks and advisors in different markets when an IPO is launched. However, with an STO, are much lower for raising funds.
Fully Traceable and Embedded Compliance
Regulatory compliance is a key feature of security tokens. However, regulations can vary, which are determined by investor type, asset type or jurisdictions. And incorporating all these regulations can normally cause serious troubles. To avoid this happening, security tokens, programmable tokens, can be used as an effective way to have embedded regulations in the code, meaning that they become exponentially easier and automatic once the system is set up.
furthermore, like utility tokens, security tokens are fully traceable. This will bring transparency to the markets and all stakeholders who are involved.
the fractionalization of digital assets is a major factor for bringing in more investors to take part in the security token market. Asset tokenization allows investors to own a small fraction of a stock, piece of art or real estate. Without STO development services, access to these assets was usually limited to investors with large capital and ability to make long-term investments. a security token enables investors to own a small part of a building in one side of town and another part of a building in a different area Instead of spending all funds on one building. Therefore, to reduce the risk, they are able to distribute their capital across multiple properties.
STOs are available for trading on a 24/7 basis, delivering additional flexibility.
STOs cost less than IPOs because they are carried out in digital form on a decentralized blockchain network. Smart Contracts ensure regulatory compliance offering more effective sales and exits by eliminating intermediary fees.
Our Security token platform makes the fundraising process inclusive and accessible, fair and flexible, innovative and easy, and open to anyone, anywhere. We create a digital global investment marketplace with a P2P network that makes process more streamlined for investors and provides a built-in exchange to allow global trade of securities. By our p2p network price is not controlled by anyone and it will be fully decentralized. because it is a no-KYC platform, nobody has to reveal their identity and because of that, we don’t have any geographical limitation.