A security token is a financial asset which is "tokenized" on a blockchain and available on the crypto market. These tokens allow the fractions of ownership which is like securities and allow people to own a part of the company like it exists in the stock exchange. It allows the execution of quasi-instantaneous transactions also. This process is called "security token offering" (STO).
Companies do STOs to raise funds in order to extend their businesses. Since the security tokens already exist in the real financial world, they are like a bridge between legacy finance and the blockchain ecosystem.
The STO brings the credibility back about this kind of fundraising. The ICO system had some problems because of the lack of regulation. The STO offers the advantages of an ICO while securing the investors with the regulation of legacy finance.
Moreover, a STO is cheaper in fees than a traditional fundraising in legacy finance. Because there are less middlemen, a transaction in a STO remains cheaper than the traditional finance transactions. Theses fees are lower thanks to the smarts contracts also. Indeed, the smarts contracts are reducing the lawyers service costs in the future. The fact that there are less middlemen, securities allow for faster execution, which is making this kind of investment really attractive for investors.
Finally, when a project conduces a STO, it can aim at a bigger market because they are not limited by borders. This bigger market will make the liquidation easier on the secondary trading market and investors will have the capacity to sell their security token easily on trading platforms.
Flix Snip aims to be present worldwide with its application and its service. The STO, as we saw above, is the best way to conduce a fundraising without manipulations at a worldwide level. Moreover, it is a system which guarantees the integrity of the investors funds. Finally, a STO is easier for everyone !