Seasoned Startup Advisor, Marvin Steinberg, discusses the Future of Security Tokens and STOs

Oct 03, 2019 at 12:21 // PR
Guest Author

Blockchain technology is fairly new as even Bitcoin has been around for less than 11 years. However, it wasn’t until years later that people became interested in the technology behind Bitcoin. Developers are still coming up with different use-cases for the blockchain technology.

Startups usually struggle because this market is new and no one fully understands it yet. What first seemed like a simple digital currency, has become so much more.

Startups that delve with blockchain can also have a hard time incorporating their idea into the real world, either because they don’t know how to achieve efficient marketing or because they lack knowledge about regulations regarding cryptocurrencies.

Scaling can also be quite hard and it is an essential factor in any company. The blockchain itself has to be created in a way that allows enough scalability when the company grows enough. The business model here is crucial but it can be really hard for beginners to choose the right one. Funding might seem easy but it’s not as a startup will need to carefully consider how much they want to raise, and how they want to fundraise.

The fall of ICOs

One might think, just launch an ICO; they clearly work. However, that might not be the case anymore. 

It’s true that throughout 2017 and 2018, ICOs were a great way to raise funds. ICOs are easily accessible for anyone and allow people to invest small amounts of money without having to pass any procedure at all. 

This was great at first as the cryptocurrency market was also booming quite strongly. The bull run drove in even more investors. Though, the market was simply not sustainable and crashed. Similarly, ICO success began to decline as most ICOs ended up failing or scamming people. The lack of regulations and laws was great to raise funds but also posted great risk for investors which eventually started looking for better and safer options. 

ICOs still exist today but they are certainly far less successful. The need for other methods of fundraising is increasing, leading to the creation of IEOs ( Initial Exchange Offerings) and STOs (Security Token Offerings). 

The difference between IEOs, ICOs and STOs

According to Marvin Steinberg, a German serial entrepreneur who sold his energy venture in a multi-million dollar deal to gather funds in pursuit of developing white label solutions in the blockchain sector, the projects blattered across IEO lists are similar to an ICOs. 

However, Marvin Steinberg continues, an IEO is conducted on a cryptocurrency exchange. The exchange takes care of most of the marketing as well as the sales procedure. There are many benefits to this method,; for instance, exchanges themselves are responsible for making sure a project is legitimate. 

Exchanges will not tarnish their reputation by holding coin offerings from fraudulent or bad projects. “Or at least that’s what people would assume,” Marvin Steinberg explains. 

Marvin Steinberg clarifies that most exchanges are fake and utilize wash trading to give the visage of an active user base. Thus, these hollow operations couldn’t care less if they offered an IEO for a scam. 

Marvin Steinberg explains that while IEOs could have given investors a layer of protection, however, the offerings are still not regulated and even after the exchange screening procedures, projects can still turn out to be scams. 

”An additional key risk that IEOs hold is that guarantee a secondary market to a token, thereby pulling the project closer to being an unregulated security,” Marvin concludes. 

Based off his entrepreneurial experience, Marvin Steinberg asserts that STOs (Security Token Offerings) are the safest and most reliable means of fundraising through a token sale. STOs are subject to all the regulations applied in a specific jurisdiction; this gives the investors real protection backed by law enforcement.  

The security tokens also offer additional benefits that ICOs or IEOs do not. Marvin Steinberg explains that security tokens can give investors right to equity shares as well as dividends, and the security tokens themselves are backed by real assets.

Technical Aspects of STOs

Clearly, STOs are the better option, but how does one launch an STO? 

According to Marvin Steinberg, an expert in STOs, launching one without any help can be a difficult and time-consuming task. STOs are a powerful fundraising mechanism when done correctly but they can also be quite complex due to the legal framework behind them, and other technical aspects necessary to operate them.

Getting help from a professional and certified STO advisor or platform is crucial to avoid making legal or technical mistakes. CPI Technologies is perhaps the first platform to offer STO white label solutions and it’s certainly one of the few platforms with a proven record. 

CPI Technologies is currently working on a project to tokenize a part of Times Square itself, giving anyone the ability to invest in real estate easily. This huge $700 million project is getting its guidance from CPI Tech and Marvin Steinberg himself. 

CPI Tech has been able to secure this huge partnership thanks to its proven record. CPI Tech delivers strong results in a short period of time. For starters, a 124% increase in the average yearly sales thanks to innovative marketing campaigns tailored for every single project. 

Other fantastic statistics include more than 40 successfully completed projects and a 420% increase in the average visitors for traffic campaigns for products operating on their white label solutions.

Are STOs What you Need?

If you are a startup or even an established company, you might still not know whether you need to launch an STO or not. 

Marvin Steinberg and CPI Technologies have developed a short quiz specifically for that reason. With this 2-minute STO quiz, businesses can get a good idea of whether an STO would be beneficial or not.

Marvin Steinberg firmly believes that STO’s are the future of fundraising for all businesses, including traditional businesses looking to tokenize their assets. The STO expert also asserts that tokenized assets will simply dominate the whole financial sector in the near future.

Disclaimer. This press release is for informational purposes only and should not be viewed as an endorsement by CoinIdol. We take no responsibility and give no guarantees, warranties or representations, implied or otherwise, for the content or accuracy. Readers should do their own research before investing funds in any company.

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