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Token is a newer trend that is becoming more competitive to cryptocoins in the cryptocurrency world . Token is nothing but a digital asset whose functions and values can be modified at the time of its development . The process of creating a token , assigning a functions value and making it legal to use is called as tokenization . As per the functions they perform and assets they hold they are divided into various types . Here let us have a look at security token and its development . Security Token : The four main criteria that Howey's Test involves for the security of a token is as follows : It must be an investment of money With an expectation of profit In a common enterprise With the profit to be generated by a third party. Security token is one which fulfills all the above four set of criteria and passes the Howey's Test . Security token is becoming more viral because of its in-build features and benefits for the investors which...

ICO is a process of fundraising similar to IPO . ICO usage dropped down because of the fraudulence activity of some ICO issuers ,which resulted in huge loss on investors side . These unsuccessful ICO and unsecured nature made investors shift from ICO to STO . STO is nothing but a fundraising technique like ICO , but more regulated and secured than ICO . This makes investors to follow STO than ICO . Hence , STO prevailing the recent digital world with uncountable number of investors and issuers . STO and Steps to Launch STO : The technique of selling security token by the issuers to raise funds from investors to launch a business model is known as Security Token Offerings or STO . The steps to launch a STO is not so easy as ICO . STO involves various steps and it takes time to launch a STO successfully . The steps that are involved in launching a STO are deriving strategic plans , knowing about the regulatory laws and issues , reasons for the launch of STO , identifying th...

In recent days , the terms cryptocurrency , bitcoins,ethereum , blockchain , ICO ,STO ,tokens are pronounced in high volume . The improtance of cryptocurrency is well understood by huge amount of people and this makes  new implements and improvements in crypto world . In this blog let us discuss about security token an important aspect for the STO process . STO is a kind of crowdfund technique that pushes down ICO . Security Token : The token that passes the howey's test is considered as Security Token . It allows the investors to claim for a profit /share after the launch of STO process . Token is a key that makes one to launch a ICO or STO . The nature of token decides whether the fundrasing is ICO or STO . If a fundrasing involves the crowdsale of utility token ,then it is termed as ICO . If it involves security token then it is termed as STO . Types of Security Token : There are three types of security token according to the nature of tokens. They are Equity Token...