Topic: STO's are not cryptocurrency's (Read 298 times)

To be honest, I do not see any big differences between STO and ICO. STOs are just a more secured way of holding a token sale, where every participant must undergo a full KYC process and this is it.

Yeah STOs are more like IPOs.

On the cryptocurrency aspect, I am still not sure. Maybe we can call it a "hybrid cryptocuurency" 
I guess the best people to define what a STO really is are the people at SEC.

I don't think because those who conduct STO have to go through a verification process before operation make their coin less of cryptocurrency, STO companies issues security tokens to its investors which is still a part of a cryptocurrency. I think STO is better than ICO because it is regulated, this would prevent scam that we always see by many ICO projects because we don't have anybody regulating ICO projects, STOs gives investors more confidence.

STOs are not completely crypto but also operate on blockchain Technology which is the main purpose of crypto currency, the most important thing here is the crypto currency irrespective of the vessel its using, ICO is just a vessel that has been corrupted by people’s greed.

At least STO's own form of investment is quite secured and protect investors other than the ICOs that are just coming up to scam and the ones that are not scams end up failing without returning money back to investors since there are no regulations or anyone to hold them responsible.

I do not even know whether STO will be able to fully replace the ICO, but this direction looks quite interesting. But while I do not see that it enjoyed the same popularity as the ICO.

Why not?

They are security tokens similar but different than utility tokens. I don't agree with you, they are a cryptocurrency too.

You know STO is actually not planning to defeat the object of cryptocurrency but to add a form of security to its investment which ICO lacks, before the existence of ICO, there were IPOs and because  it was being regulated, you hardly hear the case of scam because its difficult to hijack the idea, though ICO came with a plain purpose.

But unfortunately, scammers and bad projects already hijacked the idea and this is what gave birth to STO which will just be a form of security to already built system and that is why STO is gaining more investors trust now and probably many ICOs too will shift to this.

I also thought on this topic and it also seems to me that the STO as a whole has nothing to do with cryptocurrency, if there is a need to undergo serious verification procedures that today pass a very large number of people.

Cryptocurrencies have different functions and can have many different applications. Therefore, I think that STO is a cryptocurrency. Tokenized assets are also cryptocurrency.

STO seems to be a security offer so that it does not look crypto, but this becomes one currency that might shift the existence of ICO, but don't know, the problem is not as easy as we imagine, just like bitcoin is still difficult to be accepted by all countries in the world.

This is also what I've read from other opinion and articles if they are not cryptocurrency then what this kind of crowdfunding is doing here, I believe that STO will eventually replace ICO because of it being more regulated than ICO.

STOs are just a more secured way of how to hold an ICO. This is a great solution to protect investors and the team members from fraud participants that want to exceed their personal caps. STOs will replace the ICO model in the nearest future.

Yes, we have heard a lot about STO but in fact no project can execute STO and so it cannot be applied in this market. IEO is an excellent ICO alternative at this time

Which is why stos are not existent anywhere and have low volume of projects participating in it
Most project prefer an ieo and also an ico

But worthless, I’m more worried about the profit
Someone else might prefer the security

That's true up to this moment, and people prefer this over ico since STO is backed by company's share, likewise people are more secured with that. Little did they know the possibilities of what might happen. What we need now is strong regulation that will punish those people who are trying to use coin offering in their fraudulent act.

To the best of my understanding, STO is another form of token or cryptocurrency offering that is regulated. It is still a cryptocurrency and I'd maim difference from what we used to know as cryptocurrency offering ICO, is the security.

I think that STO is aimed at control in contrast to the ICO. On the one hand it is good, but sometimes it seems to me that it is even too much.

If that is the case then we can easily track if the STO is a work of scammers they need to show proof that they are security token and they are approved from the regulatory board, I'm sure some of these will fake their accreditation.

STO will be classified as a stock and it's not crypto. Those dumb ico never understand about that, there are some dumb scammers are using STO to create a new scam.
We must understand about the real definition of that.

STOs will be a great addition to the crypto ecosystems when eventually there are better framework for the implementation.They will offer a huge doorway for companies to tokenize their assets and make it much more accessible to the general public, that will improve the image of cryptos (as well as market capitalization)in general.Some platforms like Tezos hold a lot of promise in this regard. The down side may be that there may be too much legislations regarding STOs.

STOs don't have any advantage over ICOs for small investors(under 100k$). ICOs can compete with STOs without any regulation and actually regulation lead to more delay for projects. If the project already reserved the unique patent then the way team choose for crowdfunding is absurd. Real value is all about working product and how team stated on a whitepaper for applying these ideas to the mentioned problem.

I think they worked like Ripple and they are more regulated than ICO I have encountered Bolton coin who claims to be an STO but there were a lot of scam accusations on this one, although we still not proven if this is a scam project there is still a chance that an STO can scam people.

Yea I see a lot of talk about STOs being the new ICOs when in reality they won't, technically impossible for it to be so and if we had so many ICOs and alot of it was just copy of the other how many of these STOs will be able to come up with their own unique ideas and tech? Just because a project is a STO does not mean it will have real value also or serve a true purpose.

Yes, I think the same. STO coins are like the Ripple! They are totally regulated, but still, I would like to support it. At least Investors are happy to have STO projects this year, it is a way of making profits. After a lot of ICO scams, dead ICO, investors are fed up with it, me too!
Decentralization is the nature of the blockchain. STO projects will be working through blockchain technology but they are licensed. As they are selling tokens/coins, so it's not shares. It is a cryptocurrency kind of Ripple!

yes you are right, because that's why many new projects are still using ICO to collect development funds. STO may be good because investors get guaranteed funds they invest. but we cannot get tokens or coins from the investment.

I agree with you, a project that uses STO is not a crypto project. but it was better than imposing ICO participation but the end of the project was a scam. STO is only an alternative for those who still doubt, if they already know the difference, they will definitely think again.

These are centralized securities designed to stabilize the situation on the market for new projects, but, judging by the latest results, are unsuccessful.

Not all STO's are asset backed, those would be asset-backed token, if one takes into a account in where a ICO is located they should take into account consumer fraud laws put in place in order to protect investors from such cases.

Plus it's not in the from of a cryptocurrency as envisioned by Satoshi Nakamoto as cryptocurrency was created and is to be used to disrupt the U.S dollar and government backed bank notes, Security Tokens do not do this as there is a limit on how many people are to be able to hold Security Tokens and who is able to trade it such as having to be traded on a ATS or through a broker thus removing the simple ease of transfering funds freely to anyone similar to a currency.

STO's can't be compared to cryptocurrencies and not all securities are asset-backed.

Someone can come from a country with no regulation on reporting asset-backed token and completly lie on what they own, it really varies by country and people doing deeper research into the project and where it is incorporated.


Scam project's really do not have to be accepted because even if countries have minor regulations put in place against securities, they still might have consumer fraud protection put in place in which protects investors from fraud.

Either way it's a country by country case, STO's are only really used in the U.S, Canana and E.U it won't ever gain mass adoption just because of the limiting factors in it.

For sure they are. There are some "crypto currencies" on the market like Ripple that do not belong here and STOs are offering a way of how to protect investors and the whole project from scammers and fraud participants.

If we want decentralized system, we should accept scam projects. Because freedom is forcing people to earn money by scamming others. So like a easier way. If we can accept this, the ICO is better. Another system with both features can be indispensable.

You have made the best point here so far. STOs have working products already in place which the tokens will support. ICOs are just filled with lies. You will never be sure what the funds raised are used for. The team just use it to enrich themselves.

Why am I not understand what you guys are saying?  

I see them to be the same though STO is just regulated much as the team has to be registered on SEC. They may not be scam but they can delay the project up to years which later you will still consider a scam. You'd rather just be staying with a project that has been listed already if you are to invest in crypto.

yes,STOs and even ERC20 Tokens are not actually crypto currencies.They can be traded on exchanges,but can not be used for transactions

Yes they are more of like shares in a company but i do not agree that they are not crypto as they are based on blockchain technology so definitely they fall in the domain of cryptocurrencies and are transferable just like cryptos are.

In addition to what you said. STOs can be crypto currency and may not because what determine that is the concept and strategy planned by the team involve in a certain project but STO are usually token, an asset or utility that project owner usually give it away to their investors during sale as a form of asset.

As far as i know STO ( Security Offering ) is a type of investment in form of cryptocurrency but is backed by physical and tangible assets like land, building and machineries unlike ICO that is not so tendecy are developer will just lie that funds are already wasted and nothing to spend and will run afterwards.

Apart from the high security part STO makes no sense to me ,I don't know much about STO though and yes I don't want to learn more about it,the way im seeing things now I think ICO will still kick STO butt someday ,ICO has better chance ,only scam projects is what make ICO looks bad right now but when investors start getting smart at investing then ICO will find its stand again ,STO requires your entire info like KYC and its not safe to me

a STO has to go through regulations exactly as a IPO does, a STO has to be traded on a ATS or through a broker thus not being allowed to freely transact in a currency like manner thus not making it a cryptocurrency.