Step by Step Process of STO Development by DCI Ecosystem
DCI is first-of-its-kind cross-asset investment ecosystem that aims to unify the classic assets with digital ones by allowing the investors to create a hybrid portfolio comprising of ‘real and digital assets’, further enhanced by advanced technologies like AI, robo-advisory with the conjunction of human advisor model, machine learning, and so on.
DCI also offers a complete 360-degree view of the private and institutional portfolio to the investors.
DCI Ecosystem will offer security tokens to the investors so that tokens can also be exchanged between the qualified buyers and sellers. This will also help DCI to gain institutional investors trust, ensure automated compliance as well as brings liquidity to many illiquid assets.
You must be wondering what is a security token and how does it bring more transparency in the entire fundraising process in Investment space?
Here is the answer.
Firstly, you must know that at the most basic level, tokens are divided into two types-utility tokens and security tokens, A utility token or ‘coin’ is generally backed by a project and is a type of investment allowing investors to get access to its underlying project, e.g., access to project cloud storage etc.
Such kind of tokens was offered in the past by companies during the initial token offerings (ICOs), which were mostly fraud and unregulated.
On the other hand, if we talk about security tokens, then it offers a tangible benefit to the investor. A security token is a blockchain-based tradable financial asset, which meets the strict regulations, specific to the country where it gets issued.
In case of fundraising by startups, a security token generally represents a share or profit in the company. Security tokens are also much more heavily regulated by the government in many countries, which makes them a safer investment option for the investors, particularly institutional ones.
The tokens offered in security token offerings (STOs) are actual financial securities, which are backed by something tangible like assets, profits or revenue of the company, and can also offer legal rights such as voting or revenue distribution to the investors.
Apart from these, security tokens also offer numerous other benefits to both the investors and token issuing companies. These benefits include global trading capability, 24/7 trading, asset interoperability, automated compliance, fractional ownership, and high liquidity.
Seeing such benefits and long-term utility of security tokens, DCI has decided to conduct STO for fundraising from the investors so that it can build a highly reliable and trustworthy investment ecosystem with all the necessary functionalities.
Here is the detailed Step by Step Process of STO Development made by DCI
DCI Ecosystem has first identified the kind of securities that it will tokenize and offer to investors during the STO phase.
2. Risk Assessment for ICO
To ensure transparency and accountability, DCI has also availed legal advice to understand the risks involved in the STO process.
DCI has appointed a highly skilled marketing team along with third-party agencies who will promote and build STO pitching to the investors.
At this particular stage, DCI will create the security token that will be used during STO phase. The tokens will be built on the Stellar blockchain platform/network.
5. STO Launch
DCI will offer the security tokens to both the private and institutional investors at this particular stage as per the pre-decided token distribution criteria.
6. Listing on Exchanges
At this step, the investors holding the security tokens offered by DCI ecosystem can trade them on multiple exchanges.