Topic: What Is An STO? (Read 440 times)

Mostly STO was used ERC721

in additional if STO was getting failed caused by the majority of people are not interesting to get the security token. Even if icos can be considered as security tokens and these are still able to provide the utility usecase.

IEO was also the same like ICO but it was getting launched in IEO platform.

i don't really need to go read your write up as lot of people commented bad about it and how you are just looking for traffic. However, i don't think a particular methode of fundraising can really change how people will invest in start up projects. Virtually everyone thought ico was the problem untill the introduction IEO came and help projects raised substantial amount of money and i can tell you that IEO is nothing more than the conventional ICO  now as lots of projects that conduct IEO ends up failing

That's what im thinking too, people now a days were very easy taken away by wrong information and false accusations without doing a research first.

Damn, ICO, IEO and now this STO like they invent new trending buzz word to cash on the latest craze. For whatever new buzz word out there, people need to do research for a huge amount of time before investing in a project. No such thing that guaranteed a successful profit.

Indeed true,these are some projects that uses an STO way to raised funds and now they're all successfull and soaring. STO is just not a popular like ICO and IEO but it is the most secured way to invest your money.

To me, STO is like an ICO. They have the same form of fundraising but only differ in platform. And they certainly will not succeed in the same way. IEO is still the best option for people to get involved and make a profit with new projects

Depends on the definitions of the STO. I mean, to be honest most ICOs in the early days were actually STOs (securities) and we know a lot of them have made a lot of value gains over the past few years.

But yes, people who think STOs equals regulated and thus equals profit? Do not be fooled. They are ICOs disguised in better clothing.

Sorry but I have to disagree with you. On what bases the IEO is better than STO?
Just because the IEOs have the hype of a big exchange? And that said exchange has gotten Thousands/Millions USD to list that particular token?

I agree with you, they weren't very successful and not very popular, but I believe that's why we still need to keep an eye on. I mean, the ICO and IEO were very popular and there was a lot of hype around them and look at all those projects now. They are all dead, and most of them were a scam, just to grab the money from the communities. At least with the STO, you have some regulation and some real value behind the companies where you want to invest.

One thing I've learned from crypto is, that you shouldn't follow the masses and the hype. 99% of the time it's the wrong decision. IPOs have been around for ages and I don't see the same hype there was for ICOs/IEOs, but that doesn't mean that IPOs are not successful because they are not popular. The IPOs rule as of now, and I believe that in a few years, the STOs will have a spot with the big players.

Popularity and success have not much to do in this stage. It will come later

good thread, lol.

STO  could be a venture for institutional clients

Hehe  , yes STO is a new method that fails because not many people respond or like it, so there is no point in arguing at length because STO has been proven to fail during its development.

Everyone has their own thoughts and everyone will never think of the same thing as you think, because some people may have lost money with a project that uses the STO method, thus making other people or investors stay away from projects that use STO to fundraising.

Yes, the exact statement you gave, because everything you say has been proven to be true and very accurate, STO is a new bidding method that appears suddenly and then disappears suddenly because investors do not trust the STO method.

I think this will be a waste of time if debated, because the STO also has advantages and disadvantages, as well as ICO which was once very popular and then just disappear because investors who no longer rely on ICO, but prefer other new methods namely IEO .

Well, that could be argued, but I believe that the cumbersome legal requirements are what make STOs a safer option than other fundraising methods? I mean, we cannot forget in a hurry what happened with ICOs

There are some projects of STO that has succeeded in the past that probably is not documented due to strict regulations. You definitely not heard some of them because maybe they were not listed on popular sites such as coinmarketcap.

Here are some of them:

Blockchain Capital
Nexo
The Art Token
Lottery.com
Hack fund
Spyce Vc
Mt. Pelerin
Neluns
Aspen Coin
Polymath
Provenance

And many more.

I got your point here but i believe if the project is good and the reason for fund raising is to scale the on-going company then STO is the best way to raise for funds, just my thoughts

Instead of you to have highlighted your point on this forum you want to get traffic to your blog that is bad way of advertising your blog post. STO is a huge failure and continues to fail. I don't think any good investors will ever invest a dime on failed model code name STO.

I think I will vote for this for the definition of STO.  Developers of this kind project just change the name of how they want to raise money but the fate is almost the same with ICO or IEO projects. If they want to abandon their project, they can. I will believe in STO if there is an option that they can refund their investors if in case they can't deliver their product as promised.

STO?
S: Security
T: Token
O: Offering.
STO method of  cryptocurrency fundraising was created owing to the failure of ICO, it was created to curb the fraudulent activities within the ICO method but it failed to see the light of the day maybe due to the legalities surrounding it. Its failure lead to IEO which has been working ever since, therefore, with IEO still in operation suppressed STO the more and till today there have never been any successful STO. Therefore to answer the question asked, I don't think STO will present any solution whatsoever.

Agree, IEO is better than all. So we don't need to waste time with ICOs and STO. The market in 2020 is not for new projects, so be very careful when deciding to invest. Even IEO can make us lose if investment is not careful

STO or (Security Token Offering) is the same system as ICO, only the difference is the background,
it's better to avoid ICO and STO because IEO is better, with notes launch in a good exchange, but it's all up to you, I hope you're lucky if you do it  

First, STO stands for Security Token Offering in which investors owns shares in the project. Secondly, till date I have not seen any successful STO (I stand to be corrected), they come with the hype but ends up falling could be that investors are not interested or they find the other type of token offering to be better, that is IEO. Also, since STO has not be successful till date, I doubt if ever it will as even the IEO model is gradually lossing it's hype, if at all there is any (hype) remaining.

There have been a lot of posts about STO, so you don't have to try to do a similar job to promote your website. Also STO is not possible in this market, I have not seen any successful STO projects since 2019, all of them are fake and are just taking advantage of it to collect money from investors.

for the entire existence of STO, I have not seen a single project that was successfully launched. This is an invented abbreviation that causes interest among stupid investors. Money is not insured here and smart people already realized that this is a simple scam scheme.

The STO can be called the most unSuccessful Token Offering method ever. It was used for a very short time and very few projects, and was not very popular. It was not very likely to be successful anyway.
Moreover, they were very cumbersome due to legal requirements.

Real STO must have registered in the local authorities. There was a lot of requirement to run an STO. Dude, financial report has already become the main thing that must have gotten by investors.
In crypto STO has different meant caused by it has been used as a re-brand to get the demand caused by the decrease in the popularity of ICO.

STO means Security Token Offering and it's not good for Investing because they always fail, STO have been a game changer after ICO failed in 2018 but every single one of the STO project I knew failed

No need to apologize if what you say is true, because we have seen and felt how the STO project and the ICO project are working, so the basic conclusion is proven, so there is no need to apologize to anyone if it is true.

STO are tokens that promises dividends.The rate of dividend maybe fix or depends on the net profit of the project. Some of these STO are actually regulated and audited. But many projects has started to misuses the term and call every of ICOs as STOs. So, there's no difference at all unless you find a project is actually regulated by any entity.

I think this is the problem, 'the market' shouldnt be the cryptocurrency market, for STOs 'the market' should be the regular equities investors. Talking about a real STO, this would entail that investors invest in equity (in other words stocks) that are tokenized, so it would be similar to investing in any other start-up or company that has an equity offering. The problem with the crypto market is that there have been too many companies that tried to get rich quick and abused the system which means there is a general distrust at the moment.

Thank you for your support on this matter! I used to think myself (1-2 years ago when I first found out about STOs) that any project offering a part of their profit to be distributed to token holders was immediately a security, problem is, it legally should have been a security but a lot of those projects didnt follow proper protocol. To be fair there wasnt a lot of regulations around crypto at the time so it was a bit of a grey area and as long as the company actually did what they promised there wasnt much harm but still especially now its important that companies that are an STO follow proper protocol so investors are at least a bit more protected.

I see STO as an ICO. A tiny bit different legal status, but the idea behind it is the same and also the risks.
It is most probably an over simplified view and may be also only partly correct, but it's good enough imho and easy to understand for those who were here in 2017 and 2018.

No STO project is doing well, as far as I can tell ICO is like 70% better than STO, sorry to say STO is a big failure and no single STO project came forward to prove this wrong yet, maybe it will be possible on future but not now

Yes, I have also never seen a fully successful STO project and gave everything to the participants who promoted them, now STO is no longer in demand by investors, because investors now only believe in IEO projects that are in large exchanges.

In this market, activities that make a lot of money are the trend. I realize that STO is no longer a hope. all are just meaningless safety for investors. provisions protecting investors is there but again showed that they have no right to decide on the project.
I see Binance IEO as one of the trends now. it guarantees profit for investors and at the same time guarantees benefits for them. If you have the money, you should join IEO at Binance, do not invest in any other projects.

Couldn't agree with you more, you made some valuable points there about sto that anyone with less knowledge of it should find useful and research on, it is actually not enough for a project to just call themselves an sto project, they have to follow all required procedures to be consider as one, out of the many project presenting themselves as sto, only a handful (if at all there is any) are actually an sto project.

I've never seen any STO project that doesn't ruin or rekt their investors, they are bad for  business, still I belief in relictum pro because they have what it takes, I just hope t won't be another let down

Beforr the STOs are one of the main funds generator machines but that is only a tale. Some say STO can even surpass the ICO process but to be honest its now dead. Meaning those projects under STOs havent made successful to their investment plan. The profits and the safety of any investment cant really be secure, so these STOs are not really gonna work up. People decides whether they are gonna invest on it, win it or lose it. With its structure, investors will likely go for an IEO instead of it. As results are being shown like thr current IEO of cartesi.

STO stands for security token offering. It is a process similar to an ICO where an investor exchanges money for coins or tokens representing their investment. However, unlike ICOs, STO’s take it a step further and distribute tokens that fall under the status of securities. They are linked to an underlying investment asset in a way like stocks, bonds, real estate investment trusts (REIT) or other funds. As such, security token offerings distribute securities. These are tokens that are fungible, negotiable financial instruments with attached monetary value, like a part of property or company. Security tokens are not traded on regular token exchanges. Exchanges that want to offer security token trading need to fully comply with regulations, including extensive investigations into token listings, data sharing, and investor onboarding procedures. Thus, security tokens trade on specialized exchanges.

Thanks for your overly biased ideas about the STO ,but i don't agree to you at all, you sounds like a " know all things" person but the reality you're isn't. I'd been into STO for almost a year and it goes well i never regret investing through an STO. You know man it's all depend on the project if it fails or not.

Lol, any fund raising today is dead, I think you are like years late in asking STO will be the solution to the growing scams in the crypto industry. The much touted IEO, who was hype earlier was supposedly the solution, but look at current situation right now, it is almost dead.

The only thing that make its afloat is that it is supported by top tier exchanges. However, even those projects was just hype and whales are the one who are raking big money from it. So to answer your question, No, STO will not be the solution, sorry to burst your bubble.

That link is actually a link to a blog post article trying to inform people about STOs and what you mentioned regulations around STOs, its not an advertisement. Exactly for the reason you just mentioned, that STOs and investing in general can be dangerous, it is important to get more information about STOs and regulation, which that article tries to give you.

On your point on what an STO is, I disagree, projects could call themselves an STO but in most cases that would not be true, there is a difference between claiming to be an STO and being an actually STO. Therefore having the information to discern what is all required to be an STO, regulations, company and financial registrations, country specific rules like accreditation is very helpful. A project cant just create a token and be an STO, they will have to follow actual rules like with an IPO or any equity offering. So it would be very helpful for someone who isn't aware of those rules to read an article like that to gain more information what they need to look out for to check whether or not a project claiming to be an STO is actually offering securities and following applicable rules and regulations.

I understand your frustration around all of this, due to the history of ICOs and blockchain projects, that is why information is important!

I beg to disagree to every word you've just said, it sounds you hated token offerings too much that made you sounds more idiot about the matter. You know what ? You doesn't know anything about STO, Lol lol lol

Rather than wasting everybody's time by spreading your trash website, here's a shorter explanation on what an STO is for everybody.

An STO, or security token offering, is the latest way for half-baked blockchain projects to extract money from unwitting idiots that think absolutely every cryptocurrency will pump or appreciate at some point. Most of these are formed by companies or individuals with little to no experience developing products, and few will achieve the heights they aspire to.

Odds are if you invest in an STO you will get rekt, just as the case is with ICO and IEO investments nowadays.

There is a reason only accredited investors can invest in IPOs in most countries!

With all the current knowledge that we have about STO, I think this article gives a clearer and more in depth insight. But the question still remains, will STO really present the final solution to Cryptocurrency fundraising?

https://elitemininginc.com/2020/04/what-is-an-sto