Over the past couple of years, crypto crowdfunding is growing among the startup community. Many new entrepreneurs are approaching various crypto crowdfunding methods for initiating their businesses. The types of crypto crowdfunding are ICO, STO, IEO, IDO, IFO, etc.
Among these methods, STO(security token offering) is more popular because of the various advantages it offers. STO can be launched only by creating security tokens. Security tokens can be created by backing some of the real-world assets. Those assets might be anything like stocks, collectibles, real estate, crude oil, valuables, etc.
Based on the type of assets backed, security tokens are divided into debt tokens, equity tokens, and asset tokens. Among these types, asset-backed tokens are more popular. These tokens have high liquidity, and good transparency and they are regulatory compliant. So, asset-backed crypto tokens are widely preferred by people in the crypto ecosystem.
In this article, we shall discuss asset-backed crypto tokens, the reasons behind creating them, their use cases, etc. Come, let us start with…
What is Meant by an Asset-backed Crypto token?
Asset-backed crypto tokens are digital assets that facilitate the trading of real-world assets in a cost-effective, quick, and secure manner. The asset-backed crypto tokens are created on top of some popular blockchain platforms like ethereum, Tron, BNB chain, waves, and more. It is a type of security token so the value derives from the value of the underlying asset which is backed. The asset-backed crypto tokens can be pegged with any real-time commodities or assets like precious metals, real estate, valuables, etc. These tokens act as an alternative to traditional stocks with some differences on their end. As already said, investors can buy their traditional stocks by means of crypto tokens. Besides, these tokens offer high liquidity and hassle-free trading.
As we already discussed, asset-backed crypto tokens are created and issued using security token offerings. Now, we shall see some of the popular asset-backed tokens in the crypto marketplace.
- Hello gold
- Hi coin
- Digix gold token
- Pax gold
- Gold mint
- Aurum coin
- Karat gold coin
- Jinbi token
- Zen gold
Now, we shall discuss the reasons behind creating an asset-backed crypto token. They are.
- Highly transparent
- Globally accessible
- Great liquidity
- Easy to Invest
- Lower risk
- Asset divisibility
- High-end security
Not only these, but asset token creation offers numerous benefits for the token creators. Now, you might be interested to know the creation process of an asset-backed token.
How to Create an Asset-backed Token?
- Choose a suitable real-time asset for tokenizing
- Perform complete market research
- Pick a blockchain for asset token creation(Ethereum, Tron, etc)
- Audit the chosen asset
- SPV/SPE formation
- Fix a price for your asset token
- Develop an exemplary STO dashboard
- Conduct token sale
- Token marketing and promotion
These are the steps to be followed for creating an Asset-backed Crypto Token Development.
On considering these, you might be interested to create your own asset-backed token. To create your asset token in a well-efficient and successful manner, you can approach a renowned asset-backed crypto token development company in the crypto space for great results.