Crowdfunding is also known as the latest form of funding, where one builds and describes a project or venture and then approaches a large number of people to contribute small amounts of money to raise capital. This form of alternative finance has gained popularity in recent years as an alternative to traditional financing methods such as acquiring a bank loan or venture capital. Crowdfunding can fund anything from the start-up phase to charity purposes and can also be used in raising funds for anything from developing a product to a marketing campaign.
STO: The Future of Crowdfunding with Secure Digital Assets!
An STO is, therefore, one form of crowdfunding whereby digital tokens that represent ownership or an interest in a particular company or project are issued by leveraging blockchain technology. Tokens can be typically pegged with a real-world asset such as equity, debt, or commodities. Such a crowdfunding event is considered subject to various regulations. STOs allow for investment by investors in ventures that might otherwise have been barred from being pursued through traditional finance, and a company gets an opportunity to obtain capital that they may not access through other methods.