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An innovative crypto crowdfunding model has replaced the need for so-called fund-raising concept ICO, and are regulated as it sells selling security tokens to the accredited investors across the globe.  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 . Launching Process of STO : Step 1 : Tokenize the securities and assets  Step 2 : Create White Paper  Step 3 : Ensure the legal licensing of securities Step 4 : Creation of Token  Step 5 : Embedding tokens into smart contracts  Step  6 : Creation of Token Issuance Portal Step 7 : Launching the STO  Step ...

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...

Before a year , ICO is the way used for fundrasing . After the introduction of security tokens , the ICO is being replaced by STO in recent days . STO plays as a secured way for both issuers and investors which ICO fails to provide. This makes STO enlarges in crypto world hiding back ICOs. STO  - Secured Crowdfunding : Security Token Offering is the process of fundrasing , which involves the crowd sale of security tokens by the issuer to investors. The security token is one which helps investors to claim for share or profit after the launch of STO . STO Marketing Services : The process of STO is so long which starts from planning and token creation , white paper writting till the launch of STO . STO process is divided into two as Pre -STO and Post - STO . Pre- STO :  The steps that are done before the launch of STO are termed as Pre - STO, which involves tokenization , legalization , white paper writing , token marketing , and preparation of token crowdsale plat...

Security Token, is one which says YES to Howey's test. In short, the tokens which allow investors to claim for profit/share after the launch of ICO are known as security tokens. Hence, the process is termed as a new form of ICO, called Security Token Offerings (STO). If you want to know about Howey's test and as well as about security token in details, just refer at Crypto Tokens and its Classifications  Security Token Blockchain : As security tokens function different from utility tokens, they require a different or a new blockchain. Blockchain of security token will be in different infrastructure from utility token blockchain. The building blocks that make security token blockchain are listed in detail below Building Blocks Of Seurity Tokens Blockchain The blockchain building blocks can be imagined into two tires for easy understanding. Tier 1 Infrastructure Components Assets Owners Validator Nodes Experts Delegate Nodes Protocols Tokenization Ident...