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As initial coin offerings (ICOs) complete their boom-bust cycle, a new form of token offering is superseding them. Security token offerings or STOs are a method of fundraising that bring the issued tokens under regulatory oversight. In other words, STOs follow the rules.
These are instruments that pass the Howey Test, established in the case SEC vs W.J. Howey Co. 1946, and are considered financial securities in the same way bonds, stocks, and exchange traded funds are. This offers the fundraiser a degree of credibility and helps attract more professional investors.
However, marketing STOs is a niche field of the wider digital marketing industry. The most effective STO marketing agencies offer a deeper understanding of blockchain technology, securities law, and compliance.
If you’re launching a STO, here are some of the benefits of hiring a specialized agency:
1. Cost benefits
With the rise of digital marketing, the costs of hiring a marketing manager or content strategist has been rapidly expanding in recent years. Nearly every senior marketing role now demands a compensation package larger than the U.S. household median income ($56,000). And that’s the cost of a regular marketing expert. Adding in blockchain expertise will set the bar a lot higher.
With that in mind, startups with limited resources may find that hiring a STO marketing agency is a lot more efficient and cost-effective.
Another critical advantage of a STO marketing agency is the professionalism these experts bring to the table. Marketing a regulated security to qualified investors, wealthy individuals, and institutional buyers requires a higher degree of professionalism and formal communication. An experienced crypto PR agency can help you position the team to attract these savvy investors.
3. Network effects
Unlike ICOs, STOs are targeted at high networth individuals, family offices, hedge funds, and pension funds. These are not the sort of investors who hang out on Telegram or can be converted via Facebook ads. Reaching this cohort requires private access and networking that experienced and well-connected STO marketing agencies can offer.
4. Access to cutting edge marketing-tech
Marketing technology that can automate content creation and infuse artificial intelligence into investor relations is expensive. However, a legitimate marketing agency may have already invested in the infrastructure needed. This means your STO can access the latest and greatest technology at a fraction of the price.
Don’t underestimate the value of cutting-edge automation tools that can help you multiply the number of people your content reaches or AI-powered analytical tools that can help you make a more informed market strategy decision.
Large-scale marketing agencies can quickly adapt to your project’s success and increase the headcount or deploy new technology to meet your needs as you grow. Well-established STO marketing firms already have the spare manpower and resources you will need when your project grows, so it helps to sign up early.
The scale, private access, and cost benefits of a well-established STO marketing agency should not be overlooked. These professional agencies can serve as a launchpad for your STO or blockchain-powered solution.
EAK Digital is a leading Global Blockchain PR Agency that works with Blockchain start-ups to help them gain mass media coverage across both mainstream and crypto publications alike.