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Topic: STO or ICO? - page 3. (Read 23664 times)

member
Activity: 220
Merit: 10
August 04, 2018, 05:45:20 PM
#19
Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
I was hearing many thought about that ICO needs to be regulated in order to become more secure and less opportunities to scam people using it, so possibly it is a way to perform that, and it is mandatory...
legendary
Activity: 3038
Merit: 1169
August 04, 2018, 05:25:59 PM
#18
Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
No, it's not the same thing. ICO is a type of decentralized crowdfunding system that can offer either security or utility tokens, so basically STO is a type if ICOs. Security tokens are prohibited by the US SEC (because most of them don't comply with the laws of security), these are the kind of tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders (examples: tZERO, Polymath). Utility tokens, on the other hand, aren't prohibited by the SEC, but you have to follow their regulations (that's the kind of tokens you are most likely familiar with, like Ether).

Well either way they have the same concept of using decentralized tokens, That you can earn from an investing through the companies itself, Well the only thing STO might be secure because of the need of compliance to the law of its security, But then again as you have said most of them don't really comply to that term and ending up a fraud, Well I am not quite familiar with STO, I am just elaborating what you have just explain here and would keep track if there is a need for security tokens, But I might say I still like ICO even though there are some of them ending up running with the investors money or ending up creating shit tokens instead.
newbie
Activity: 116
Merit: 0
August 04, 2018, 05:09:34 PM
#17
STO is like holding stocks of a company and are more secure than holding ICO tokens. Launching an ICO is comparatively easier than launching STO since it has to follow some legal constraints. If ICO companies goes bankrupt then it doesn't have to compensate the investors but STOs that declare bankruptcy must liquidate the remaining assets to pay back the investors.
newbie
Activity: 181
Merit: 0
August 04, 2018, 12:08:22 PM
#16
I think the Security Token offer is like ICO. But STO works like stock shares. I think that there is no such difference as these two are near. Both are very promising and safe.
full member
Activity: 350
Merit: 100
HiveNet - Distributed Cloud Computing
August 04, 2018, 11:52:28 AM
#15
ICO (Initial coin offering), TGE (Token generation event), STO (Security token offering), etc. All this definitions are non official and mean Token Sale. Change of title it is marketing.

absolutely agree with you mate
this is just a kind of marketing strategy, just a different words but has the same meaning
newbie
Activity: 322
Merit: 0
August 04, 2018, 11:43:27 AM
#14
In the crypto market, as far as I know, Security Token Offering or STO is just a hotcake for now which is not ever swallowed as this concept has launched but there is not any STO in crypto space. If there is I would like to know, please! And ICOs are very known in the market and come up with legitimate, fake, scam and famous tokens. STO may be possible when a govt. launches any.
newbie
Activity: 83
Merit: 0
August 04, 2018, 11:28:57 AM
#13
these both are different thing I guess ICO has better position in the market so will most of the users will suggest you to invest on it but I will say first analyzed the market then decided where you want to invest. taking suggestions from others is not always a wise move
newbie
Activity: 308
Merit: 0
August 04, 2018, 11:21:06 AM
#12
The difference between STO and ICO is the token they are offering. STO allows customers to buy tokens as a public offering, just like an ICO. But, STO tokens are backed by a tangible elements, such as assets, gold, shares of an organization.
newbie
Activity: 67
Merit: 0
August 03, 2018, 12:53:25 PM
#11
Difference is between their token I thin one’s provide utility token and another is security token.
jr. member
Activity: 224
Merit: 1
August 03, 2018, 11:26:11 AM
#10
STO  or ICO  both of them are capital mobilization from the investors. STO allow customer to create token value from and eternal trad-able asset and also buy tokens as part of a public offering, ICO is also mobilizing capital through the sale of utility token.
hero member
Activity: 1274
Merit: 622
August 03, 2018, 11:20:12 AM
#9
Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
No, it's not the same thing. ICO is a type of decentralized crowdfunding system that can offer either security or utility tokens, so basically STO is a type if ICOs. Security tokens are prohibited by the US SEC (because most of them don't comply with the laws of security), these are the kind of tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders (examples: tZERO, Polymath). Utility tokens, on the other hand, aren't prohibited by the SEC, but you have to follow their regulations (that's the kind of tokens you are most likely familiar with, like Ether).
hero member
Activity: 896
Merit: 504
August 03, 2018, 10:59:58 AM
#8
ICO (Initial coin offering), TGE (Token generation event), STO (Security token offering), etc. All this definitions are non official and mean Token Sale. Change of title it is marketing.
newbie
Activity: 89
Merit: 0
August 03, 2018, 10:56:52 AM
#7
In feel way out of the loop as I have never even heard of a STO!
newbie
Activity: 182
Merit: 0
August 03, 2018, 10:55:19 AM
#6
The main difference between STO and ICO is the type of token they are offering. STO allows customers to buy tokens as part of a public offering, similar to what a ICO does. But, these STO tokens are backed by a tangible element, such as assets, profits or even revenue in a company. It is more like holding shares of a company just in a different way
sr. member
Activity: 1932
Merit: 300
August 03, 2018, 02:09:01 AM
#5
STO comes with legal accordance and hence the team/project/company seems to be more dedicated and the project has larger chances of success which brings larger profit to the investors. People can easily sue STO's for fraud in worst case scenario.
member
Activity: 140
Merit: 10
CRYPTASSIST.io
August 03, 2018, 01:55:46 AM
#4
STO is actually a new, improved version of the ICO. It has been made due to the large number of ICO scams in recent times. The main difference is that STO investors become a full co-owner of the project that will allow you to save your money in any case.
newbie
Activity: 350
Merit: 0
August 03, 2018, 01:37:00 AM
#3
Security token offering (STO) enables company to create token value from an external trad-able asset. ICO's has recently used to raise funds by offering virtual coins / tokens to investors. ICOs are similar in nature of crowdfunding. Crowdfunding are usually considered donations where as investor of ICOs gets returns on investments.
member
Activity: 364
Merit: 34
Fast, Smart, Trustworthy
July 31, 2018, 08:12:04 AM
#2
Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
Hi there. In essence, both STO and ICO are capital mobilization from the investors. But when it comes to "token", "ICO" is mobilizing capital through the sale of "utility token", while the STO is mobilizing capital through the sale of "security token".

The nature of 2 "token" is different:

Utility tokens can be created by anyone and are not subject to legal constraints. When the issuer of the token goes bankrupt or scam, the biggest loss is to the investor.

In contrast, the security token is bound to the publisher's assets and is governed by the law. When the issuer declares bankruptcy or commits fraud, they must liquidate all assets associated with the security token and return it to the investor as a percentage of the token they hold (like stock). At the same time, they are subject to legal action if they abuse their tokens. So investors will be protected when investing in security token.

That's all my opion.
newbie
Activity: 34
Merit: 0
July 31, 2018, 05:32:46 AM
#1
Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
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