Effective Marketing Strategy for (STO) Security Token Offerings
The year 2018 was a momentous time for the ICO market. In the first three months, the Initial Coin Offering raised more money than they raised in 2017. There is a shift occurring now, and the new player in the industry is STO or Security Token Offering. Now that it is easy for users to get funding from non-traditional sources, many dubious ICOs are entering the market. These ICOs forever tarnished the industry and left a sour taste in investors’ mouths. That was when the SEC came in.
Presently, STOs are said to be the best alternatives to ICOs available online. The biggest draw STOs have is that they are compliant with existing security regulations. STOs have the potential to be the next big thing in the crypto world. Also, some investors even predict the STO industry to reach ten trillion dollars. Whether you want to develop an ICO or STO, you need a solid marketing place to ensure success. This article will describe the foolproof STO marketing strategies for success. We will cover how to market the STO immediately and launch an STO without requiring assistance from an STO Promotion service.
Also, security token offering (STO) is based on a Bitcoin (BTC) sidechain authorized by German financial regulators.
STO and ICO – What’s the Difference?
The most significant differences between the two revolve around their regulations and their target audience. A typical ICO is crowd-funded through retail investors. Anyone can become a retail investor, but this group usually comprises people with little financial knowledge or care about business regulations.STOs, however, do not always work with retail investors. The reason first is due to the regulatory limits. For example, accredited investors can search for and invest in an STO in the United States. These limitations change the security strategy used by ICOs; Hence, the STO marketing strategy should be focused on accomplished and discerning investors. People who invest in STOs usually have a high income or have enough capital to spare. These investors are financially savvy and shrewd in their investments. It would help if you created a creative STO strategy that appeals to their interests.
Sound STO Marketing Strategies
A clear marketing plan requires you to define the marketing goals. This step begins well before you implement the marketing strategies. A lack of a clear goal means that you will continue spending money at the STO without achieving any purpose. The biggest question you must first answer is the STO’s target audience. You should put yourself in the investor’s shoes and understand their mindset when choosing an STO for any STO. Also, everything you do revolves around this persona or audience. For example, geographic location is one aspect you should focus on. Different places mean the investor’s attitudes can change too.
Invest in Developing a Classy Website
The fundamental part of any STO marketing strategy is the website. The site is the first thing a customer or investor will interact with. Make an excellent first impression on the investor, and you can always come back later and make changes to the strategy. A website’s homepage is crucially important here. It is the STO’s face and acts as an extensive summary of the business plan. Try to develop a professional and insightful homepage, and you take the first step to establish trust between investors. However, a good website is merely the foundation. If the base is strong, the rest of the structure has a better chance of surviving any obstacles.
Follow Every Legal Compliance Protocol
This step is vital to the STO and helps your marketing efforts. Legal compliance is what separates an STO from an ICO. Before the STO launch, you should meet all the compliance requirements. STO investors will get into every legal detail about the STO and have the sound financial knowledge to make an informed decision. Compared to retail investors, these investors will want to know if your offering complies with the rules set in your jurisdiction. Ensure to provide all legal documents to potential investors. This step requires you to contact and consult with attorneys who are experienced in the security token business. They also can guide you through the requirements. It would be best if you remained open about the compliance and legal structures around the STO.
Create a Blog
The website should have an active blog. These blogs should have in-depth articles with infographics and statistics showcasing the benefits of investing in your STO. A blog is always an effective method to market the STO. Setting up a blog requires only a few minutes. Though you might encounter some difficulty initially, you need to keep at it and eventually gain enough traffic. Also, remember that your blog will run alongside other marketing platforms. It would be beneficial to publish two or three articles on different topics as a good way to get attention. Also, you can guest post on other blogs and increase awareness.
Hire or Contact an STO Marketing Agency
An experienced STO marketing service can help you overcome, and obstacles encountered down the line. The biggest problem with ICOs was that there were too many in the market. STO marketing requires you to get advice from three expert verticals: marketing, legal and technical. A good marketing agency can bring new ideas to the table you may not have considered at the start. These individuals can provide the right connections in the industry.
These connections will prove crucial to establishing the network. Of course, networking will also help you in marketing the STO. STO experts can be influencers, editors, and agencies. It would be best to use Twitter and LinkedIn to reach out to these experts and get them on board. Also, consider attending token security events. These events help you make in-person connections with the experts and network with them. This STO marketing guide is for people who know the importance of marketing their STO. It will be a long road with bumps in the middle. But, a solid marketing strategy can help you lower any needless risks.
