LimeChain’s Security Token Offering services include token creation and integration, as well as the creation of an investment platform development for token offerings.
A token is a representation of а digital asset or access rights which can be traded. Tokens are usually managed by one or several smart contracts and are based on a blockchain platform (distributed ledger). The tokenization of digital assets has enabled a host of new and various funding and exchange opportunities. These include industries such as real estate, equities and investment funding, intellectual property but also luxury goods, art, and even sports.
Our security token offering services include token creation and integration, as well as the creation of an investment platform development for token offerings.
If you are considering launching a Security Token Offering (STO), LimeChain can build your platform for tokenized asset offerings, based on your fundraising or investment requirements. We can also help you launch your Initial Exchange Offering (IEO) and provide consulting services regarding its management.
Thanks to our strong partnership network, we can also assist you in the legal and marketing-related aspects of your project. This includes KYC verification, AML procedures, accreditation, whitepaper and pitch deck creation, advertisement, marketing, and end-to-end development and support – starting with company incorporation to platform in production and product scale and support.
Are you considering launching a token offering for your business? Here’s how you can benefit from it!
Benefits of Token Offering
for Your Business
Developing tokens for your business can offer a number of benefits that are otherwise not available through standard means of financing. These include:
Due to the decentralized nature of blockchain, you are guaranteed that there is no single point of failure that can take down the whole network. This increases security, and enables 24/7 trading of assets.
Decentralization also allows for greater power distribution among users thereby increasing participation in your IEO or STO.
Blockchain technology allows all transactions to be tracked and accounted for at all times. Together with the ledger’s immutability, this provides a high degree of security and reliability of the platform, making it ideal for the storage of securities and other assets.
It also enables and significantly simplifies reporting and auditing, thus preventing fraud and other forms of manipulation.
When securities or assets are tokenized, their compliance becomes programmable thanks to smart contracts. These enable all regulatory and compliance requirements to be fully automated.
In this way, smart contracts can regulate a token such as to approve or reject its sale, depending on the eligibility of the party.
Security tokens can provide liquidity to a project because they serve as financial instruments with real value. Moreover, due to their availability, tokens tend to increase the valuation of assets and to attract greater numbers of investors. Tokens can further also be sold and bought on bulletin boards, providing investors with yet more access.
For example, tokens used in real estate are ideal to provide liquidity to illiquid assets. This liquidity is then used in the development and management of the real estate, whereas investors receive fractional property rights.
Tokens serve as an innovative way to fundraise that can lower the bar on participation. Token offerings also allow companies to market their project in a variety of non-traditional ways, making them more attractive and engaging. This significantly increases the likelihood of a project’s funding and success.
Unlike with buying shares, participating through tokens automates all interactions between the third-parties and middlemen which are usually involved in the process. This makes the process fast and cost effective. The only party to which the token holder relates is the issuer (through their platform).
This decreases the complexity of the processes as well as the possibility for fraud or corruption.
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The Token Offering Development Process
LimeChain’s token development process goes through the following phases to guarantee that a project’s requirements are fully met.
1. Analysis and design
Prior to any development, the business and technical requirements of the token offering must be understood. This includes studying the project concept and clarifying a client’s requirements. If necessary, we also consult our clients, in order to create new requirements that would help achieve the project’s goals in the best way possible. We then proceed with the architectural design and fidelity design.
Altogether, this stage encompasses the following steps:
• Workshops to finalize the requirements and scope of the project
• Designing the technical architecture of the platform / application (incl. smart contracts architecture, integrations, and full platform architecture)
• Documenting the technical architecture into the technical part of the whitepaper
• Wireframes and designs creation
2. Development of smart contracts / wallets
Smart contracts and dedicated wallets are developed to ensure the management, storage and access to the tokens. Contracts are also used to define the rights that are granted to token holders and to secure their enforcement.
LimeChain is specialized in developing smart wallets with exceptional UX and security characteristics.
3. Backend / frontend development
The frontend and backend code of the STO is put down. At this stage, the project comes alive, and all of its parts are put together.
4. KYC/AML and Payment provider integrations
“Know your customer” (KYC) and Anti-money laundering (AML) procedures are integrated into the platform using a third party provider. These ensure that the identity of customers can be verified, and tokens cannot be used to generate income in illegal ways. And protecting both investor and issuer.
Integrations with payment providers, or directly with the issuing bank, are implemented, ensuring that tokens can be bought and sold with Fiat currency.
5. Internal audit
Prior to any testing, an internal audit is conducted by a separate team within the company. The purpose of the audit is to ensure that the previous steps have fully complied with the technical and business requirements and specifications. The audit goes through several stages which examine the different parts of the project and their execution.
Any faults or inconsistencies that are found are sent back for further development. Finally, an audit report is issued that details the whole process.
6. Testnet deployment
The project is deployed on one of Ethereum’s test networks. to examine its operations in a simulated environment. The properties of the tokens, smart contracts, and wallets are tested to seek out any possible bugs.
7. Mainnet deployment
Upon successfully passing the test net deployment, tokens can be fully deployed to the main net, and the STO or IEO can begin.
Token Offering by LimeChain
LimeChain has been providing security token offering services and been developing utility, payment, and security tokens since 2017. We also have experience with the tokenization of traditional assets such as real estate, financial assets, premium bonds, and others.
Our expertise in the fields further includes:
• Creating fully customized token sale platforms with options for additional features such as secondary market, voting, and more
• Building solutions that are in compliance with KYC/AML standards, and other legal requirements. Check LimeLegal for legal support.
• Developing easy-to-use smart wallets that effectively abstract the complexity of blockchain and are accessible to investors.
Are you considering launching a token offering for your business? Get in touch with us to learn more about our security token offering services and how we can help you with your project!