The cryptocurrency market hit rock bottom and the whole business world Web3, but still didn’t make it stop. The financial market failure caused inevitable complications and made us change business models built over the years or recently launched but the ones that are already working. Anyway, business models are going to face substantial transformations, and the main thing here is to apply them correctly and preferably with a slight bias in technology. The current situation can be either destructive or beneficial, so let’s see how to make a benefit out of it.
What do numbers say?
What we face today is a global financial crisis, during which all types of assets are falling. According to Euromonitor’s global inflation tracking report, average annual global inflation from the beginning of the Millennium and up to 2019 constituted 3.8%. In Q2 2022, due to Russia’s invasion of Ukraine, it hiked 7.9%. A little scary. Isn’t it?
Watch what investors do. The answer is in their actions.
However, investors don’t give up and that’s not because they just desperately believe in a miracle. Not at all. Investors know exactly what they are doing and despite this fall, they have withdrawn a lot of cash. What next? They are currently looking for tools to invest so as not to lose their money on record-high inflation. Do you feel this fresh opportunity here? Isn’t it a new wave for the business world?
There is a solution. Will it work for you?
Imagine there is a ready-to-use solution you can apply not just to save your business during the crisis, but to change its basics and expand the boundaries. You’ve probably heard about security tokens, but let’s have a closer look at them in order to understand how your business can benefit in case you apply these technologies.
Tokenization is a disruptive technology that can fundamentally transform any traditional business which provides an opportunity to represent any value and rights in digital form so they can be transferred through a blockchain with reduced involvement of intermediaries.
Security token offering or STO is a promising fundraising method in which a company sells asset-backed tokens to investors. Almost all existing forms of fundraising can be done in the form of an STO to increase liquidity and efficiency.
Benefits of STO:
- More efficient management. The transfer of assets to the blockchain provides full transparency for both company owners and investors.
- Opening new markets. A token is easier and cheaper to trade than a traditional asset. You can also save on traditional advertising tools.
- Increased liquidity. Ownership of valuable properties such as real estate and luxury goods can be divided for easier trading and availability to investors (fractional ownership). The asset itself is not divided in this case.
- Ownership protection. Once entered into the blockchain, data cannot be edited without the owner’s permission or the execution of a smart contract.
- Investments without borders. STO allows you to attract investors from all over the world with almost any budget, on average from $1000. This opens up many more opportunities for investors and allows companies to raise more funds.
The opportunities that are already changing the business world and revolutionizing the business processes
Since its dawn in 2017, the security token market has initiated a vast myriad of various thriving STOs in completely different areas. For example, the World Bank issued Bond-i (blockchain-operated new debt instrument), the world’s first bond to be formed, allocated, transferred, and handled using distributed ledger technology during its life cycle. The two-year bond raised A$110 million, making it the first time investors have contributed to the World Bank’s growth efforts in a deal entirely controlled by blockchain technology.
Expensive doesn’t mean better
If you want to increase the liquidity or raise funds for your business then Security Token Offering is just what you are looking for. While a decentralized finance doppelganger of an initial public offering requires unaffordable expenses (up to several million), STO offers more available conditions (the budget starts from $100K). Well, don’t think that if you pay more, you will avoid bankruptcy and face immediate success. It’s a myth. Despite the fact the Security token offering is substantially cheaper, it offers wider opportunities and modern highly technological solutions. For example, imagine you don’t even have to go public.
Not as simple as it may seem. Tokenize wisely.
Our goal here is not to scare but to warn. Professional advice and support during the whole process are integral units of this revolutionary process. However, once professionally applied, it will deliver a wide range of new opportunities. New features will open a whole new world of possibilities. Accept assistance because one single mistake may cost a lot. Stobox is an award-winning tokenization company that provides technology and consulting to help clients leverage digital assets and tokenized securities. With our team, you can get a comprehensive advisory on tokenization, and apply it wisely.
What exactly to do?
Now you are probably wondering how to apply tokenization and to make it in a correct, cost-saving, and fast way. We have answers.
Stobox takes clients through all the process stages and stays with them until the offering is over. Stobox is not a crypto firm, it is a tokenization provider that helps businesses transfer their assets to blockchain and make security tokens. Our unique products such as DS Dashboard, a solution to manage tokenized securities, or DS Swap, which is basically Uniswap for tokenized securities are already used by multiple companies.
Why is tokenization a future?
Being a relatively new technology, tokenization will leave competitors far behind. Today wins the one who is ahead, the one who applies new technologies and grabs new opportunities. However sooner or later this technological solution will cease to be a rarity and become the new standard, just like now having a website. That’s why it is so important to start using it now and to be in the first line.
The World Economic Forum (WEF) stated that the world is fastly moving from isolated token assets to an absolute token economy. Tokenization will start a new epoch in the business world! However, there are still several challenges to be considered until wider adoption is achieved. Overcoming these challenges requires partnerships with expert companies devoted to developing the market. Stobox guides clients all around the world through the process of issuing and managing digital assets and provides professional consulting services to help different businesses apply tokenization.
Tokenize wisely and enjoy new business opportunities with Stobox.
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Source: https://www.thecoinrepublic.com/2022/07/22/disrupted-but-not-devastated-how-to-save-your-business-after-rock-bottom-via-sto/