What do you think is happening around STO?

Arkann

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Quote from: Bossfidelity on August 06, 2020, 08:28:03 AM

Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

In my opinion, investors in this space are more concerned about profitability than security. Most investors would prefer risking their funds to get much more reward. This is likely the plight of STO's, and that explains why we've barely had a very successful security token.

One way or another, a security token gives an investor higher confidence in the prospects of their investments than an ico. But apparently, not only the high profitability of the project interests the investor first of all, but also the possibility of remaining an anonymous investor, although under the current conditions it is becoming more and more difficult to do this.

nicecrypto

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Most investors don't trust sto base on the previous performance of the previous sto project, besides crypto is more about privacy and sto are the total opposite of that, crypto community don't like kyc so much so they won't pick interest on sto projects, there is hardly any successful sto projects so far.

el kaka22

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Well, back in the day when ICO was big, people were using that and were investing in that, over time people started to see that ICO is not making them as much money as they hoped and most of the coins that got funding never really became that big except a rare few and that is why they went down and lost investors money which caused investors to stop investing into ICO.

After that STO started for a while and it was quite famous as well, it got a ton of investment too and all the ICO were moving towards STO for a long time as well and by all accounts was the future of coin offering world, but just as it was getting more famous, IEO started out and that was important because people care about their coins getting listed, since it was difficult to get it listed otherwise. So, STO just started at a very wrong time.

Nellayar

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

There are different things that an investor considered before he will enter in an investment.

Many of us wanted a project that is fully legalized in order for us to look a genuine project. It may also add our confidence to invest since we all know that when they are scammers, they will easily tracked by the government.

But why STO, which is fully legalized type of tokensale does not want by some of investors? I think the main problem with STO is the KYC method. A lot of crypto investors don`t want to reveal their names and pictures online because online is a dangerous place wherein we can`t hide anything once our identity reveals.

RabbiTANK

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STO KYC verifications are very strict and also it's more centralized in a way that makes it look like it's not needed on the blockchain technology, even the few STO projects that managed to raise few funds still end up not doing too well and investors quit trusting any STO till date

r32godzilla

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I thought that STO died because it was really hard to meet the requirements of regulators and legally distribute tokens as security among investors. So it was a nice idea, but the implementation process is very demanding. What a pitty because we could finally have tokens with a real value. Cry

masterrex

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Thats because STO has many requirements that quite hassle for investors. I think thats the reason why most STO fundraising are failed, But that was only my assumption and I'm not an expert about it. or maybe the investors are simply don't like the STO method of investing and prefered ICO or IEO for that purpose.

carlisle1

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Most of the replies are concerning to legalities, there are many investors from this space who doesn't like to expose their real identities

They ain't feel comfortable and knowing that legal aspects are possible to interfere with their investment, they choose to deal with old process which gave them comfort to deal with initial offerings.

Quote

In my opinion, investors in this space are more concerned about profitability than security. Most investors would prefer risking their funds to get much more reward. This is likely the plight of STO's, and that explains why we've barely had a very successful security token.

Yes, most of the investors from here are risk takers and willing to take the gamble, when they've got the right project
The outcome of their participating would give them instant benefits, They can easily cash it out and enjoy without any fear of legal interventions.

Bossfidelity

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

In my opinion, investors in this space are more concerned about profitability than security. Most investors would prefer risking their funds to get much more reward. This is likely the plight of STO's, and that explains why we've barely had a very successful security token.

CrowdforAngels

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

With direct experience in the field, there are many reasons that they have not taken off in the same way. But if we put aside the price of crypto it boils down to a few things.

Firstly, STOs require a level of KYC/AML which puts off many investors and makes it difficult. For instance, many individuals in Asian countries do not have passports, thus you need to rely of document authentitication that is thrawt with problems.

Secondly, there is no large trading venue because securities require certain regulatory permissions such as a Multilateral Trading Facility License (MTF).

Finally, the relationship between the company, trading venue and companies house (in the uk) is still not established and therefore, its easier for now to utilise nominee structures to hide investors underneath.

I hope this helps

mersal

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

STO trend doesn't last long, before that IEO took over the place of fund raising that is why STO projects are not successful compared to IEO.If the project is legit then they can find investors but it will take time so they had to launch the project at the right time not in the long bearish trend which time is really for a new project to sustain even the project has got potential.

Akiko

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

They called their crowdsale as security sale as if there is a security measure we do as investors to check how our investment will be secures by them , and I don't find any successful STO that have good market price after the crowdsale is finish . that's another factor since more of the investors is not always looking for security but gain they have in participating in it. If they know that they can't earn with even how secure they promise it will not work for investors that only looking for profit.

Westfiled

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Quote from: shadowduck on August 06, 2020, 03:07:16 AM

because no one will give legal status to some new cryptocurrency startup. nobody needs it. governments do not want this and will not permit such projects. they have no chance of success.

A bunch of STO have been going to the hell and it looks like there was no chance for STO to recover. STO is dead right now and people have known it so well. So many times people call it the future but in fact that's only a scam money-grabber only

disconnectme

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The reason STO failed to gain traction is because they want to play the WallStreet card here, if you want that, take your shit coins to WallStreet people. ICO/IEO is flexible and people do not want to touch securities reason being that the legal waters to swim through is just to long to sail through. I would rather ICO and pay some fines just like most ICOs of 2017/2018 did than go for STO

cryptomaniac_xxx

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Simply it's a security token, and everyone doesn't want anything to do about securities because it's going to be very hot on the eyes of who else, SEC. That's why it is very slow to be adopted or it is even close to 0 at this point. And you don't want your investments to go to nothing if you investment on STO and then suddenly government are suing that project.

Skinny48

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STO main problem is strict rules either listing on centralized exchanges or on those investors trying to invest in a STO project, it's not straight and easy like ICO and IEO, I'd rather invest on Facebook, Twitter etc shares than STO projects

Jackl87

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I invested in 2 STO's myself because i like the idea of owning a share with all the rights that are attached to it.
I also know from my investents, that it's hard for them to find a good exchange, because apparently exchanges must comply to strict rules if they want to trade security tokens.

SyndicateLabs

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Quote from: Eco_111 on August 06, 2020, 02:39:32 AM

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

I think it is too troublesome for investors to participate in the STO, as far as I remember, the STO will have a lot of rules and investors need to follow those rules. IEO will be a lot easier and the profits it will bring are huge at the moment

Wingsbtc

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The reason why STO remains a bad idea is lack of decentralization, every thing about STO is exposure, this Crowdfunding is more like a centralized strategy, every investors are exposed to some things that makes it clear that STO is far from decentralization

Ucy

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I guess the requirements are difficult or not compatible with crypto ideals?
In my opinion, true crypto-based "crowdfunding/fund-raising means" should be very decentralized... And a more general name for such funding means should probably be adopted to reduce the confusion in names. In my opinion, ICO is more suitable as general name compare to others, but it isn't the most suitable general name that can be used. Maybe Intial Public Cryptocurrency Offering(IPCO)?

Anyway, a true Intial Public Crypto Offering should be:
— Decentralized
— Transparent
— Anonymous/Private (kyc can still apply here without violating this principle
— Permissionless/trustless
— Immutable
— Secure
—Consensus driven
etc

These ^ and other important principles will make crypto-based crowdfunding good, more attractive for true crypto people and safe/secure.

Topic: What do you think is happening around STO? (Read 235 times)