With a possible
increase in distrust and fraud in the ICO space, security token offerings (STO)
are now rising in popularity. It has appeared as a regulated, profitable, and
more reliable alternative to ICO. However, if you think that ICOs have had some
sort of backlash, imagine STO. STO is still a new concept in the market and
therefore it is a bit challenging to attract potential customers.
There are some
things that need to be done before you start implementing token marketing to
sell tokens to your target audience. You definitely need to build a solid
marketing plan if you have created your own STO and want to make it reach
In this article,
we will look at:
- STOs vs ICOs
- The Planning Process
- STO Marketing Strategies
- What happens after
STOs vs ICOs
The differences between ICOs and STOs
|Require registration with a government agency||✔||✔|
|Backed by a tangible asset||✔||✔|
|A barrier to entry for investors||✗||✔|
|Value is determined through business operations||✗||✔|
|Value is based on token value and speculation||✗||✔|
|Protections in place for investors||✗||✔|
The Planning Process
You need to be
prepared for everything before you start your initial security token offering
sale. This can include: initial marketing, security integration, website
building, and white paper creation.
Having a website
is a very important part of any project and your STO will definitely be highly
benefited by having a website. Much like creating a website for any type of
business, it should consist of: an overview of the project, details like
project timeline, the team behind the project, and other STO detials that will
give potential investors an insight into the project and giving them a sense of
White paper is
also an important part of any project because it is a good way to attract
investors by giving them a clear image of what your projects is about and its
benefits. You must mention everything regarding your STO project and can also
include the revenue mechanism, technology used, legal regulations, etc.
Before you start
marketing your STO, you need to understand the concept and idea properly.
STO Marketing Strategies
During the initial
stage of marketing, content is an important way to spread the word about your
project. It is all about letting potential investors know what your project is
about and how it can change the cryptocurrency exchange market.
1) If you have a
website, it definitely needs an active blog because it is an essential part of
marketing because it helps gain organic traffic to your website, offers value
to your project, and enhances branding. It is definitely one of the most
effective ways to market your security token. It is also important to remember
that it is not just about having articles and a blog, the quality of content
2) Press releases and
media are some of the best platforms to help you crate and start a buzz about
your project. You need to do your research and find a credible press release
site that will publish news articles about your STO. You can also do paid
promotions with reputed PR sites in the form of press releases. If you are not
capable or writing or have other things to handle, you can also pay an
established crypto news platform to write and publish articles.
3) Guest writing is
another way that you can build relationships, authority, and exposure in your
field. It is definitely an effective marketing technique when you contribute an
article on someone’s website or blog. You are essentially securing a link from
another website that allows you to establish a strong relationship with the
website owner and secure strong audience with your target audience as well as
4) It is important
to understand that it is not just about creating content in bulk and positing
it on websites. SEOs are also a very important part of it and it is a technique
that improves the quantity and quality of your website by reaching the right
audience. You need SEO to rank your website, blogs, and articles higher on
search engines. It helps link building where you can build high-quality links
to your website from high domain authority sites.
5) STO listing
requires you to add crucial information about your STO including; dates,
regulation details, token information, white paper links, etc. So, research and
look for listing websites so that you can add your project to it because it
helps spread the word and attract potential investors to your platform.
6) Social media has
definitely taken the world by storm and it is great way to reach millions. You
can place ads, post news, and other aspects of you STO on social networking
sites like Facebook, Instagram, Reddit, and Twitter. You can tell users how
they will benefit with investing in your STO by engaging them through
questionnaires, creating surveys, and pisting interesting facts about the
7) Your STO
project can also benefit greatly from video marketing. Creating videos that are
based on project demos, project introductions, how it works, problem-solving
and others can attract potential investors and give them a better idea of your
new project because they can go viral online. So, with that, make sure that
your video is high-quality and informative.
8) You need to
build a community of people that knows and understands the importance of
investing in STOs. You can post of discussion forums because majority of the
time people take forums quite seriously. If you post on them quite regularly,
it will give you a better chance to engage with your target audience and
potential investors. They will most likely ask you questions about your STO and
you can answer their question and present them with facts, features, and
benefits to convince them to invest in your STO.
What happens after?
Now that your STO
has started gaining exposure, getting inquiries, and has developed a
reputation, you can take several steps further to convert users into customers
and take your marketing plan further.
1) Help the Investors
People that are
interested and intrigued by your project will definitely come to you with
questions that they have in mind and you will need to provide answers to all
their questions to close the deal. Present your authority and the answers that
you provide them must include a sense of expertise and assurity. You also need
to include all of your contact information so that it makes it easier for
potential investors to reach you.
2) Start networking
Not ony should you
look at attracting people to invest in your STO, but you should also work on
building credibility by instilly trust and respect in the investors through
3) Get listed on exchanges
You need to
research and find popular exchanges where STO token-holders can trade your STO
for other cryptocurrencies.
Joel Woodley is a freelance journalist, bringing you interesting health fiction, tales of discovery and critical story at everything from deadly diseases.Joel earned BA in English from texas college and she is currently based in USA. she are contributing to the newsletter for newsheadline.us.