Security tokens are the next big thing after ICOs as a means of digital fundraising. The term STO stands for the Security Token Offering. Bitexchange Systems is a firm that provides seamless service to market your security token. There are some key principles that are useful for STO Marketing. And in this article we'll be discussing how you can implement these strategies.
Often there is some best cryptocurrency exchange platform that streamlines your needs for STO or ICO. They feature industry standard calendars where your offering is listed and is well circulated in the crypto community.
STOs are financial securities because they are similar to traditional shares. You can purchase tokens during the offering that you can then sell, trade or hold. Your tokens are backed by something physical like the profits, assets or revenue of the company.
Effective STO Marketing strategies:
You should look forward to these features in any Security Token Offering marketing agency.
1. Rely on Proxy marketing
The security tokens cannot be marketed directly and the approach of proxy marketing has to be adopted. The token sellers should be featured in online or offline media on behalf of their organization and idea.
Newspapers, magazines and online media can also be used as a medium to mark the presence of an organization.
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2. Build a comprehensive market study
You have to build a domain understanding of the market to identify parameters like competitor analysis, business categories, market scope and projection of dividends.
Such a strategy will help you understand and design your executive deck along with a whitepaper. You will next analyze the different collaterals(like videos) you would be needing.
3. Target the right audience
It is essential to know the target group you want to offer your security tokens. Targeting the right people and the relevant income group will help you identify or expand your reach.
4. Be an expert in deal marketing
You have to gain expertise from the point of brainstorming new ideas to answering riddled questions. Such skills will boost your ability to sell tokens.
Some vital highlights are:
Keep your Confidential Information Memorandum (CIM) handy and updated. Other important documents would be Pitchbook and articles in the form of a whitepaper.
Prepare a small piece of digestible information that conveys all your essential principles.
You must collect and build a library of potential buyers and investors.
You must develop a keen leadership ability to be able to reach out in spite of certain difficulties. Such an exercise wherein you stretch will empower you to discover any hidden faults and means to solve them.
5. Deal with the right partner exchanges
The technology behind cryptocurrency has simplified the process of selling tokens. The reputation behind the partner exchange you want to collaborate with goes a long way in your outreach.
Sometimes bells of alarm ring in buyers when they realize which exchange they are transacting with. They would most probably have faced unpleasant experiences.
6. Bank on tailored marketing
Since security tokens are Securities and Exchange Commission(SEC) sanctioned products backed by real-world assets, they are definitely more appealing.
Since security tokens have lower administrative costs and higher liquidity, there will be a large number of people who would opt for, the deal is in identifying this group.
7. Build credibility via networking
Networking and trust building is a key action item in token marketing because buyers will look forward to seamless transactions while avoiding an unwanted mess. Potential investors also look if some of their friends or acquaintances have considered investing.
Building a wide circle of professional contacts will go a long way to strike the right deal. For the best outreach, you have to attend the crypto events, seminars and be a part of the crypto stage.
You must promote your products in person. These endeavours will gather social capital and generate consumer trust.
You must strive to convey your vision to your investors. You must work on a proven market analysis where marketing is driven by evidence, high skills and thoughtful planning.
STO marketing is slightly less privileged since token sellers are barred from publishing any advertisements in any media. However, with the right enterprising spirit and the spirit to ‘just do it’ will make your security token offering a grand success.