To be more clear, Securities Token Offering a.k.a STO is security token the traditional turned into a token. It maps all of the actual securities-type assets into the chain, which is the process of transferring assets into token offerings. A security token is compliant with the securities world & on the other hand, it has the ideals of future blockchain.
STO is the next step towards legitimizing investor offering schemes for digital asset initiatives.
So..Looking into 2019, the future for security tokens is looking extremely bright, with companies already lining up to launch their token offerings.
Topic: What is STO ? (Read 237 times)
it could be a new way to make a project run more smoothly, because through ico there are a lot of scams even though the project concept is very good but there are many obstacles experienced by the team, hopefully the STO can be more specific.
Well, it’s too early to talk about cheating investors, but with STO, by investing in it you become an investor with your share in the company.
Currently, it seems that STO will secure investors' rights more than ICO, because investors will have the right to hold the real assets of a company through token. But the problem is that there is no standard for STO to be issued, so the STOs are now just calling themselves.
I don't know much. As far as I know, STO is an upgrade of ICO and belongs to the securitization of ICO, but I don't know if it is correct. In theory, this is a way for ICO to be supervised, so I think STO may become the future.
This is just that ICO developers are coming to realisation that what they are selling are securities, as we have seen most of the investors have started asking themselves the question of what do I get investing in this project apart from the useless tokens I am being offered. For the STO concept is a welcome idea, I just hope this will not be abuse like the ICO
You can find helpful articles on online through search engines.
https://selfkey.org/stos-vs-icos-a-comprehensive-introduction-for-2018/
https://beyondblocks.com/stos-vs-icos-funding-blockchain-innovation/
https://www.bluemountcapital.com/services/initial-coin-offerings-icos-and-securities-token-offerings-stos/
https://selfkey.org/stos-vs-icos-a-comprehensive-introduction-for-2018/
https://beyondblocks.com/stos-vs-icos-funding-blockchain-innovation/
https://www.bluemountcapital.com/services/initial-coin-offerings-icos-and-securities-token-offerings-stos/
I think ICO and STO are the same which only have a slight difference, STO is a new version of ICO, the old version is more risky. because the STO is regulated this might lead to a safer investment than the ICO, but STO is also not 99% successful
I am hearing a lot of new crypto startups are using STO than ICO , what's the major differences between two and if through STO we will get ownership in company ,does that mean it's better than ICO or it's just new way to scam investors ?
STO is definitely a good way to develop the market but i'm doubting that a common people will have an opportunity to enter such projects without any problems faced. I think that these projects will be available only for accredited investors and organizations and it will be strongly regulated.
this is not a way to cheat investors, it was an attempt to cheat regulators and to create more confidence from the investors. security tokens were supposedly regulated, but this is certainly not a true
Hi friends, that I’ve to know
* With ICOs (initial coin offerings) you most likely, invest in a product non-existing blockchain like (scam exit) that is about to said woww everybody in the near future. ICOs is similar to crowdfunding, a company’s cryptocurrency is sold to investors in form of tokens in exchange for other cryptocurrencies or fiat currencies. These tokens aren’t traded on traditional stock exchanges, ICOs aren’t bound by regulatory compliance or require intermediaries.
* With STOs (security token offerings), you put your money in an existing product that had been tokenized and legalized. STOs are tokens that are backed by real-time, tangible assets directly. These tokens are traded on traditional stock exchanges, STOs are completely adherent to regulatory framework set by SEC.
Security tokens & utility tokens represent the two main categories of ICO tokens. It is important to delineate the difference between the two categories, namely coz security tokens should be issued in compliance with federal legislation regulating conventional securities.
* With ICOs (initial coin offerings) you most likely, invest in a product non-existing blockchain like (scam exit) that is about to said woww everybody in the near future. ICOs is similar to crowdfunding, a company’s cryptocurrency is sold to investors in form of tokens in exchange for other cryptocurrencies or fiat currencies. These tokens aren’t traded on traditional stock exchanges, ICOs aren’t bound by regulatory compliance or require intermediaries.
* With STOs (security token offerings), you put your money in an existing product that had been tokenized and legalized. STOs are tokens that are backed by real-time, tangible assets directly. These tokens are traded on traditional stock exchanges, STOs are completely adherent to regulatory framework set by SEC.
Security tokens & utility tokens represent the two main categories of ICO tokens. It is important to delineate the difference between the two categories, namely coz security tokens should be issued in compliance with federal legislation regulating conventional securities.
The work system of ICO and STO is almost the same and what distinguishes the most prominent STO is that the STO is regulated while the ICO is not regulated so that investors are at risk. I think STO is more promising because it only serves legitimate projects and is really serious in their pursuit. STO also promises more security to investors by registering with the SEC, because registering with regulators does not encourage individuals to cheat.
I am hearing a lot of new crypto startups are using STO than ICO , what's the major differences between two and if through STO we will get ownership in company ,does that mean it's better than ICO or it's just new way to scam investors ?
A lot of people would say that ICO and STO are different, but there is not much difference between the two.If you know ICO, then it will be easy for you to know what STO is.
Just as the first letter implies, Initial, it is the first token issued by an organization, company or industrial, in order to raise capital for a project, by issuing digital tokens to investors., but it is not regulated by any law or government.
Whereas, STO, which is Security Token Offering, bears the name Security, because it is regulated.
Therefore, investors feel more protected investing in STO, because it is regulated. Although, that does not imply there are no genuine ICO.
I am hearing a lot of new crypto startups are using STO than ICO , what's the major differences between two and if through STO we will get ownership in company ,does that mean it's better than ICO or it's just new way to scam investors ?
ICOs generally offers utility tokens which can be utilised by the users when the projects protocol or product is ready or can be traded on exchange when launched. A 95% of the ICOs doesn't have the working product most of them have prototypes which they plan to achieve as per their roadmap some ICOs achieve this and some leave it as it as empty promises.
STO are security token offering which are also same but STO offers the security not the utility tokens as STO participants are not users who purchase token and share revenue, equity and debt etc.
You can find more information here “ICO or STO: Who Wins?” by Howard Marks https://link.medium.com/NOFHlSy9SS
I am hearing a lot of new crypto startups are using STO than ICO , what's the major differences between two and if through STO we will get ownership in company ,does that mean it's better than ICO or it's just new way to scam investors ?
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