If you follow blockchain technology closely, then you know that Security Token Offering has drawn attention of crypto enthusiasts and analysts across the globe. The first that arises in mind is what exactly is security token and the answer is simple. Security tokens are those tokens which are backed by financial assets and are recognized by Securities and Exchange Commission (SEC). Now, the tricky question is, how do we get hold of it or what is the cost of development for STO?
Many new entrepreneurs who have been deflected from ICO are looking to this alternative but there are many questions that fill their minds with doubt. The biggest question that bothers them is the cost of getting security tokens developed. Many of them have also assumed that there is a great cost involved the token are directly associated with financial assets. But that is not true, you might have even browsed through some websites and probably talked to a few companies about it.
If you have been told that the cost for development of security tokens is huge, then you have not talked to an experienced developer. It is true that these tokens have greater value as compared to the utility tokens released in ICO, but that doesn’t make the development price higher. Apart from the regulatory and legal aspect, the process of developing the tokens remains the same. You can expect a little hike in the price, but a big difference is definitely a hoax.
Factors that determine the price of STO Development Services:
Whitepaper
Just like it happens in ICO, you need to prepare your STO project the same way. Whitepaper is an indispensable part of the project and you need to ensure that drafted by the most talented writer or team. While creating a whitepaper, it is must that represent your project in a way that it is convincing for everyone. Most importantly, the writer must be able to understand the business idea and must be able to portray it with all its advantages to the investors.
The cost is increased in composing whitepaper when you hire a more experienced or skilled writer. And that is must for the good of your project, but there are ways to lower down the price. It is impossible to draft a whitepaper without involving the project owner or someone from the core team. You need to balance the involvement of writer and make the document convincing and affordable both.
Type of Token Standard
You need to choose a token standard which makes your project more feasible when it comes to crowdsale. In the beginning of ICO, ERC20 became a default standard and it is still the most preferred token standard. However, there are many other protocols which have been introduced lately and are now being preferred by many project owners. If you compare the prices of token standards you might the new ones a little cheaper than the ERC protocols.
But you need to check the feasibility of the standards with your project first. Also, when it comes to security tokens, then you also need to check which one of them would be legally compliant according to the region where you are launching your project. Before choosing any particular token you need to consult it with a legal analyst. Even this consultation could cost you dearly, but for STO, it is essential.
Smart Contract Development
It is not something which effects the price to a great degree, but something that you cannot do away with. The integration of smart contract is mandatory for proper execution of the transactions. It is something that also lays impact on the business and it has to be bug-free. The best solution that you can find for STO is the development team which involves this service in their package. And you need to hire experts for this job who can make the entire process takes place seamlessly and churns out effective results for every task. If the smart contract mechanism is implemented well in the mechanism, then you can certainly expect better results. The vitality of your business is multiplied and they become more perpetual as the project becomes older.
User Admin Board and Financial Specialist
Having a feature-rich admin board or control panel is always good for business and it makes the overall impact of your business. You can maintain almost everything aspect involved in your business with better security and management. Transferring tokens to the contributors and earning through them becomes easier than ever. It brings many faster results into your business and renders every task involved in the project very easy.
It also lets you incorporate many new programs or applications in the mechanism. And it also makes all the changes adaptable at every stage with proper functionality. You may also also need specialists for certain processes and the requisites would also become more flexible. The need for an expert is more when you handle a multi-pronged application with financial aspects. This board can also be compatible with complex features and makes the STO deployment easier.
Legal Aspect
Particularly for STO, it becomes essential to have legal consultation because it deal directly with financial assets. While taking care of the legality, you also need to ensure that project does well on the marketing front. The legal consultation, in this case, requires a holistic view of market and impact of your project on it. It would definitely bring in reliability into the project for more investors.
You also need to ensure that all the verification procedures such as KYC and AML happen the way they are supposed to. The legal purview gets extended to better consolidation of resources and it also makes consistency more prevalent. For better legal consultation, you need to pay well and you need to ensure that you are working with professionals. This is another indispensable element of STO you cannot ignore.
Security and Testing Review
Any platform needs a review done before it goes online. It applies on Security Token Offering project as well and most of the times, cost is involved in overall package for service. It is a mandatory process as it helps detect glitches and coding issues if there are any. Testing ensures that the platform is entirely bug-free and robust enough to counteract any technical issue.
Testing is mostly done in two different phases, a preliminary review and additional network review. The compatibility of tokens with major exchange platforms must be checked and give access to them. It may add a little more expense to the overall cost, but it will surely make STO venture more robust.
Customized Support
The better customer support your project has, the better chances of growth are there. It includes dedicated channels of support such as email, chat or phone. Alongwith support channels, you will also need support representatives who must be able to provide solution to every issue or answer any query. No matter how carefully you develop your platform, errors develop and they need to be fixed afterwards.
That’s why, you need trained professionals for this job who know the project through and through. Apart from that, they also need to have good soft skills to tackle different types of customers. And you would have also to bear the cost of training of these executives. All in all, it is a costly affair, but the companies who have spent reasonably well on service, got long-term benefits as their customers stayed with them.
Conclusion
Driving an STO campaign is not an easy job, you need to have a really good strategy and you have stick to that till your project is released. And you need to have specialists all around you for different matters. From the preliminary research to the development of tokens, everything has to be handled by an expert. Then only, you can expect your project to be successful across the board. You need to have an efficient STO development service by your side which would be helping you to achieve this feat.
