In the NFT space, we saw pre-product and pre-revenue startups raise funds by selling NFTs, but security tokens seem to be the real deal as they can provide founders and business owners with an online community and an alternative means to raise funds to expand their business.
Rather than going the traditional way of seeking VC funds for which they give up equity, businesses can turn to the followers they already have and make them participants in the business by offering them security tokens.
Security tokens don’t always have to be linked to the equity of a company. They can be linked to profits, so holders will only own a part of the profit you make.
By working with entities that offer tokenization as a service, these tokens can be issued and listed on accredited security tokens exchanges and traded based on how these founders meet the goal for which the token was issued.
While we might extol the benefits security tokens promises, there is still a need for a method by which to push it to gain general acceptance.
By applying some of the elements that have contributed to NFT's success, founders and business owners can increase the adoption of security tokens.
NFTs Demonstrate the Power of Community; Security Tokens Can Tow the Same Path
Follower count on social media is more than a vanity metric. Followers can become active participants in your growth and profit-making. Businesses that can build a community of people, who believe in their product, stand to gain any benefits.
As we have seen with NFTs, creating a community is an excellent starting point. Healthy communities were a vital part of each project. And these communities were really the true forces behind the success of projects.
Prioritizing Community Building and Finding an Audience for Your Work
Regardless of whatever stage you are in developing your product, you can start building a community.
Though NFTs may be seen as a bubble, they have demonstrated that by being able to effectively market your vision, you can raise a community of enthusiasts even without launching any product or having any revenue.
Building a Sense of Community Ownership
Your community is your customers who have a vested interest in your growth and success.
One factor that has contributed to the success enjoyed by startups in the NFT space is building projects that appeal to their buyers, who feel committed to the same goal as founders.
That is how they could raise communities of enthusiasts dedicated to the success of said projects. Therefore, one way to get more investors to trade digital securities is to offer them the opportunity to invest in projects or businesses that interest them.
Turning to the people who most believe in what you are doing or plan to do have proven to be an effective means to raise capital.
Sports teams, movie studios, and entities in different industries who have managed to garner some amount of influence can leverage the trust of their community to raise funds. This time, however, in compliance with necessary securities laws, unlike what currently exists in the NFT space.