Without a doubt, the initial coin offering (ICO) sector had its best year in 2018. ICOs raised more money in the first quarter of 2018 alone than they did in the entire year of 2017. The overall amount raised through ICOs in 2017 was $5.6 billion, with the average ICO raising $12.7 million. That information is relatively little when compared to the IPO (which raised $188.8 billion). There is definitely still a long way to go.

The success rate of ICOs is also not that high. Only 48% of these were sufficiently successful in 2017. STOs, or security token offerings, are the new actor in this change that is now taking place. Since obtaining funds from unconventional sources has become simpler, numerous questionable ICOs have emerged and damaged the sector’s reputation. The Securities and Exchange Commission (SEC) intervened at this point.

STOs sometimes referred to as security token offerings, are regarded as one of the finest ICO alternatives that comply more with security standards. STOs are readily approved by the US Securities and Exchanges Commission (SEC) when many ICOs are not.

How ICO is different from STO?

Regulations and the intended audience are the primary distinctions between ICO and STO. ICOs are often funded by retail investors through crowdsourcing. Almost anybody may be a retail investor. They often consist of low-income people who don’t care about rules or a company strategy, don’t have much financial understanding or both.

Retail investors are not always involved in STOs. The primary reason for this is regulatory restrictions. For instance, only accredited investors are permitted to join your STO if you are launching it in the US. This basically modifies the ICO’s complete security token concept. The STO marketing plan would target more knowledgeable investors.

STO Marketing Plan: How to Market Your STO?

You must specify your marketing goals in detail, just as with any marketing or PR strategy. This starts months before the STO is published and genuine marketing tactics are used. Without an established, evidence-based plan from the beginning, you risk spending money on STO marketing without ever realizing your intended outcome.

After legal formalities and questions resolution, the actual creation of the marketing strategy may begin. You should have four to five specific objectives that encompass all you hope to accomplish with the security token offering.

Who exactly you want to target is a crucial topic. It shouldn’t be too difficult to see yourself as the type of investor who is purchasing security tokens in the case of an STO. From this point forward, everything you do must center around their identity. One area on which you might want to concentrate is location. Investor attitudes might vary depending on where they are.

Crafting The Best Website 

The website is the cornerstone of your security token marketing plan. No matter where the typical security token investor is from, their initial contact with them will be through the website. If you mess up the initial impression, your security token approach won’t succeed even if you make further changes later.

The homepage is of utmost significance. It acts as the STO’s public face. Consider it the business plan’s executive summary. The first step in earning the trust of your potential investors is to create a very professional and educational homepage and website. The following rules apply to the website:

• The website must provide straightforward answers to any inquiries from potential investors.
• It should have a lot of material (infographics, movies, etc.) if it’s pertinent.
• It ought to be orderly and organized.
• An approachable, thorough, technical, and transparent whitepaper
• To demonstrate that media outlets and the general public are interested in the project, include a Press Release section.
• A lot of details on the STO participants should be available on the website, including contact information.

Accomplish Whole Legal Compliance 

This is crucial from a marketing perspective in addition to being vital for the STO itself. As previously stated, this feature sets an STO apart from an ICO. You must ensure that you meet all regulatory standards before launching the STO. You are observing investors who are institutionalized. They will analyze each and every legal aspect of the STO in great depth and are well-versed in finance. These investors would be curious to know if you are in compliance with all the laws established in your area, unlike retail investors who lack such expertise.

What Is The Method to Launch All Legal Compliances?

For two reasons, content marketing will act as a core of your whole approach.

It first allows you to introduce yourself and discuss your background, experiences, and knowledge. Second, the audience you are aiming for is interested in learning more about you, your professional experience, and the STO’s road map. They accomplish this through the material you post.

• Write a blog 

There must be a blog on the website. In-depth essays that frequently include infographics and data are necessary to demonstrate the value of purchasing your security token. It is among the best STO marketing services advice. People could require persuading, and your blog is your finest chance by far to do so.

By writing in-depth, top-notch blog entries on pertinent topics, blogging also enables you to establish yourself as an authority in your field.

• Utilise other platforms for publishing content, such as Medium

The Medium is the best option available in the Bitcoin market for that. It has a wide range of supporters and is quite professional. Another that is particularly well-known in the blockchain communities is Steemit. Even this choice is based, once again, on your target audience.

Although we have talked extensively about articles, which format receives the greatest interaction? The most interesting and rapidly expanding kind of online media today is video.

Contact STO Professionals or Employ STO Marketing Services

There are so many challenges you are destined to confront, even if you regard yourself and your STO as trailblazers. Experts in STO may be quite helpful in avoiding such challenges. Competition is another important consideration. You should have learned that from the old ICOs. There just were too many. Who is to say that the security token industry would not be the case in such a scenario?

The three areas you want expert assistance with are legal, technical, and marketing. Any counsel who has a thorough understanding of the industry and its difficulties can bring a lot of fresh perspectives to the table that you would not otherwise be able to receive.

However, the connections are the finest part. These people can connect you with the appropriate people in the business to start your network. The promotion of the STO, its final introduction, and, of course, its success depend on this.

Start a Newsletter

You are now aware of the foundation for your STO marketing approach. In the context of STO, most individuals just pay attention to marketing as a means of attracting investors. However, keeping those potential investors interested is part of the marketing phase, which is ongoing. You must make sure that the investors who have expressed interest continue to be interested.

Email marketing is regarded as a powerful tool for keeping customers, both present and potential. To keep potential investors informed, you must establish a weekly or monthly newsletter. It will be crucial for keeping investors on board and expanding your network.

Use Social Media to Your Full Advantage

Any business nowadays needs a social media presence, and STO is no exception. We have observed ICOs making the most of social media. However, because an STO differs from a traditional ICO, social media usage would also be somewhat different.

You must first have a presence on every professional social media platform. These mostly consist of Twitter and LinkedIn. Additionally, you would want to profit from the main social media websites, such as Facebook and YouTube. Naturally, the latter is saved for all of your video footage, including any interviews you conduct.

Tips For STO Marketing 

The rules governing an STO prohibit it from directly marketing the securities through certain channels. It is still feasible to advertise it directly despite this. In reality, you should focus your security token marketing strategy on channels that are still permitted to employ.

Below are a few helpful STO marketing tips – 

• Utilize Proxy Marketing: You must think of many platforms to employ for proxy marketing because you cannot directly advertise the tokens. There are blogs, periodicals, and online media that can help you do that. Finding them is just a question of doing.
• Competitor Analysis: This ought to be helpful throughout the STO. In a short time, STO will replace ICO, according to the data. There will be a great deal of competitiveness as a result. A thorough examination of your competitors can also help your marketing strategy and keep you ready for any curveballs.
• Create a Library of Potential Investors: The secret to success with the STO is choosing the correct audience to target. Every possible investor and buyer must be considered. Having access to this information may be quite helpful when sending emails, newsletters, etc.
• Keep Regulation D in Mind: The rules for STO marketing are quite ambiguous. Advertising on television, newspapers, magazines, radio, public seminars, and online is prohibited in the US under Regulation D Sec. 506(c). At this early stage, you do not want to get into a lot of legal difficulties.
• Attend Blockchain and Cryptocurrency Conferences: You may be able to meet other owners of blockchain businesses and cryptocurrency enthusiasts at such gatherings. Consider it a platform for networking and marketing your STO. Perform some study on these people before attending the conference or convention.

STO Marketing Services

You must have realized by this point that STO marketing is not a career for the weak of heart. It will consume a significant amount of your time and energy. The finest individuals must be hired for the position. Not everyone, though, may be able to manage everything. You could require the assistance of seasoned STO marketing services at this point.

The Bottom Line

This STO marketing guide is intended for people who see the significance of marketing to the success of security tokens. There will be many bumps during the lengthy journey. The advantage of having a strong marketing strategy and plan, though, is that you can reduce any unanticipated risks.

Your ultimate objective is to draw in the appropriate audience, gain their confidence, and then convert them. If you make sure that these objectives are taken into account in all of the security token marketing activities you carry out, you may join this next significant and lucrative trend in the blockchain and cryptocurrency industries.