After so much action from the new entrants in the fundraising market like ICO and STO, they are no more new.
One of the best STO development company at Alwintechnologies being in this segment working continuously on blockchain and related products knows the heights these two have achieved, especially STO. So today, let’s talk about how long is the journey of STO launch and in what ways it differs from the old-school journey of IPO.
There are some crucial stages in the STO launch. First, let’s look at those.
1. Planning
2. Development & Marketing Phase
3. Private Placement
4. Pre-STO
5. STO
6. Post-STO
Now we will have a detailed look at each and find how much time each consumes.
Planning Phase [3-4 Months]
This stage is not only the primary stage but the demanding as well. It requires intensive efforts. At this stage, the idea starts taking shape and wrongdoings at this stage is surety of STO failure. In this particular stage, we have to sort out all the legal matters like AML/KYC and regulation requirements, in which factors like the country of launch, accessibility to foreign investors and many more things like this play an important role.
Apart from the legal framework, deciding the team for STO is to be done at this stage only. A team should have all the key elements like a legal & technical consultant, blockchain expert, token economy expert, develop personal and people from sales and marketing industry. And we need only the best ones. If you are with Alwin technologies then don’t worry. We have people with years of experience in development, legal and blockchain industry, and will help you in marketing as well. So with us, you can cut short this time.
If everything is set then we need to decide upon the valuation and exchange mechanism of the token. In addition to this, we will have to ensure that the investors stay invested for a longer duration and that requires planning beforehand. All other things like an exchange, token, standard, token building platform and stack selection needs to be done.
TAT to complete this phase : Minimum 3 months - Maximum 4 months
Development & Marketing Phase [2-3 Months]
After all the discussion about the project and carving a blueprint of STO, we need to actualize it by building tokens and let people know about it.
i) Token Creation & Dashboard [1 Week]
If things are clear regarding the development phase, it doesn’t demand much time.
At Alwintechnologies as well we have supported many clients with our pre-built and custom tailored development products. Development of smart contracts and ERC based tokens demand for less than a week. All bounty programs and air drops which were taken into consideration at the planning stage are implemented with ease at this stage.
To ensure that all AML & KYC guidelines are followed, a smart dashboard is developed which checks and ensures fulfilment of all the requirements for each request made.
ii) White Paper [2-3 Weeks]
For STO, White Paper is like fuel and without which moving ahead is impossible. Even if the white paper is written in a cluttered and unprofessional manner then it can turn STO into a flop show. So writing this document and that too correctly is of prime importance. So it needs time that should be given as well.
iii) Campaigning [1-2 Months]
Promotional part for STO is different. It needs to be done in the light of regulations as not all investments can be promoted in similar manners. So, selecting the right channels is essential. For STO, a website is must and developers at Alwin Technologies take care of it well. The website is not only needed for campaigning but it acts as a point of communication and information; connecting the world to the STO project.
Apart from website, there are numerous options like social media to professional community engagement. Even outreaching, PR and using events for network building can be part of it. This is why time may vary as per the needs and the selected channel.
TAT to complete this phase : Minimum 2 months - Maximum 3 months
Private Placement Phase [Varies a Lot]
While designing token economy if private placement was given a place then it can be done after while promoting or after that. Time required for this stage varies a lot because if the issuer is well versed in professional networking and knows high-net-worth investors then it’s easy and doesn’t take much time. However, if that is not the case then seeking the help of professionals is the best idea and that requires time.
First finding those skilled networking consultants and then working on targeting it can consume a lot of time. If private placement is part of the roadmap then planning way ahead is the only thing that can shorten the time.
Pre-STO Phase [1-2 Month]
It’s a tool that satisfies multiple needs at once. It like early bird offer and along with bounty programs can be launched as well. In this way both the initial investors as well the issuer gets the benefit.
Lets’ check how. In this way, a company can pre-check the demand of their token and make tweaks in case feels necessary, before the actual public sale. While investors at this stage get discounts on tokens thus ensuring higher profits on successful STO.
A bounty program, on the other hand, allows users to get free tokens by performing special tasks. All this can be done at Pre-STO stage with ease using smart contracts build by Alwin Technologies ensuring that only whitelisted investors get tokens and no one else.
STO Phase [1 month]
At this point, security tokens are live for sale. It can be for a small period or greater duration, all depends on the size of sale and efforts put by team till now. But things don’t stop here. The last one and important step is still left and must be taken care of right after STO.
Post-STO
As STO is launched there is a need to put in place product building and helping investors through support services. The latter one is an ongoing process as issuers need to lend support to investors as and when required.
The Deep Comparison :
As we saw it takes almost 6-9 months to launch STO and therefore is much different from the IPO. It's compulsory to become the company to bring IPO while there are exemptions available in the case of STO. Therefore if your business model is suitable for STO then it’s better to go with it and remain safe from the time-consuming process of company registration. Or you have the option for ICO as well, which takes even lesser time due to its utility token offering. If you are finding it difficult to select right option to come up with, then contact us at Alwintechnologies and we will help you in that.
A Gentle Reminder from best STO development company !
This illustration is a general and presented by Alwintechnologies through its past experiences of launching STO. To be honest it varies and many a times a lot. On the above basis, it takes anywhere between 6-9 months to launch STO. But it can be lesser or can take a bit longer.
There are no general guidelines for timing as every case and requirements are different. So, it’s better to
WeAlwin as a top STO development company provides all STO-related services and token development services. consult with one of our experts to launch your own STO.