Initial Coin Offerings came at a time when there was a strong urge for economic freedom. Many companies that needed investment capital were turned down by banks. Through ICOs, all types of investors had access without intermediaries to a new investment market. But the lack of regulation caused quick-rick ICOs to arise. Self-enrichment was their only goal. They did not solve any problems, but misled investors with unrealistic whitepapers. Of all the ICOs that took place in 2017, more than 80% turned out to be a scam.
The answer to ICOs are Security Token Offerings. They are designed to comply with international securities regulations.
As a professional investor you can invest in security tokens. You can purchase your security tokens through a Security Token Offering (STO) or regulated Security Token Exchange. Always follow the following step-by-step plan:
- ✓ Understand what a STO is and how it differs from an ICO, IPO and other forms of investment.
- ✓ Select a STO in which you are considering investing.
- ✓ Do a thorough STO research, including reading the whitepaper.
- ✓ Check all involved team members, including their past performance.
- ✓ Invest in the STO.
- ✓ Track your investment closely.
The STO specialists from Autradety spend a lot of time analyzing security token offerings. Our goal is to offer you the most interesting STOs and to provide you with all the necessary information. We go through a selection process that involves five pillars:
A whitepaper is an important aspect of a Security Token Offering. This provides a reader with detailed information about the STO. A whitepaper is our starting point to investigate whether a STO is interesting for you. We study which problems the STO issuer wants to solve and whether feasible objectives have been formulated. We also assess the reward plan and conduct a due diligence investigation on each team member.
We expect more from a STO provider than just a safe and secure token sale. Realizing trade volume is equally important. We want to know on which security token exchanges the tokens will be offered and with which marketing activities the brand awareness will be increased.
You must be able to contact your security token provider at any time with questions. We examine how the help desk of a STO is set up and how the handling of support tickets takes place. We expect a customer service that supports you on the most popular service channels both before and after the STO 24/7. These are e-mail, chat and social media.
Our developers screen the technology empowering the STO. One of the characteristics of security token offerings is that transactions cannot be mutated retrospectively. To ensure that your security tokens only reach you, Autradety checks whether the STO’s smart contract is set up correctly. The possible security token exchange and the wallet in which the tokens are managed are also inspected. It is an absolute requirement that the publisher uses a professional STO custodian. This is a regulated financial party that monitors security tokens. An IT security expert examines whether the publisher takes sufficient measures to protect your user data.