Topic: What's the fuzz all about? are ICO's/STO's any different? (Read 262 times)

Both are the same, both are still not yet regulated and whatever people will try to shill for STO and the result will be the same of ico. Is this a joke if they can try to avoid legal problems through change its name into the ICO.

When ICOs first came to be, the community surrounding it turned a blind eye to security regulations that where currently set in place, thinking they would be able to bypass such laws. After regulations came knocking on the doors of such ICOs a "new" wave of collecting funds started to appear late of 2018 known as STO's, which promises to provide a more secure way of raising funds while minimizing the risk of investors.

Are STO's all they are set out to be?
The answer you will find is no, through all the hype around STO's one has to be reminded that both a STO and ICO are completely the same.
To gain a better understanding you will have to ask yourself the following questions.

1. What are Securities?
In most countries around the world you will come to find that securities are tradable financial assets.

2.What are the regulations for securities?
Each country has different regulations set in place, some have strict regulations set in place from KYC to the restriction of only wealthy investors being able to trade financial assets.
On the other hand there are just some countries who simply do not care to have regulations set in place.

After having obtained the answer of these two questions one can come to the conclusion that both an ICO/STO are to be considered a security dependent on the country in which the project is established in.
Just because a project claims to be a STO does not mean that you can safely invest in it.

So here comes the third question to be asked.

3. Is there protection against fraud in the country in which the project is established in?

Some investors may prefer to invest in projects in which are established in a country with minor security regulations, if so one must be aware of any laws against consumer fraud. Are you as a investor able to hold the project responsible in the case of which they decide to simply run of with your money?
You better make sure there is, an example being St Kitts and Nevis in which there are minor security laws but still enforcement set in place against consumer fraud.

Conclusion
When considering to invest in a STO make sure to inform yourself on current security regulations in the country in which it is established in as not all countries have well established security laws and for those that do most do not allow common folks to invest in such security offerings such as the U.S. On top of being informed of security regulations in such country make sure that there are laws in place that have consumer fraud enforcement set in place to protect your investment in the case of any wrong doing.

STO's and ICO's are the same, do not be fooled just because a project states to be a STO.

they may not be technically the same but they are practically different. and in practice and reality is the only thing that matters.
basically STO is the alteration of ICO because ICO failed and many people (read newbies) thought they failed because they weren't regulated so the "fake" regulations with KYC (which ended up stealing their personal information) were introduced and that eventually turned into new scams called STO.

When ICOs first came to be, the community surrounding it turned a blind eye to security regulations that where currently set in place, thinking they would be able to bypass such laws. After regulations came knocking on the doors of such ICOs a "new" wave of collecting funds started to appear late of 2018 known as STO's, which promises to provide a more secure way of raising funds while minimizing the risk of investors.

Are STO's all they are set out to be?
The answer you will find is no, through all the hype around STO's one has to be reminded that both a STO and ICO are completely the same.
To gain a better understanding you will have to ask yourself the following questions.

1. What are Securities?
In most countries around the world you will come to find that securities are tradable financial assets.

2.What are the regulations for securities?
Each country has different regulations set in place, some have strict regulations set in place from KYC to the restriction of only wealthy investors being able to trade financial assets.
On the other hand there are just some countries who simply do not care to have regulations set in place.

After having obtained the answer of these two questions one can come to the conclusion that both an ICO/STO are to be considered a security dependent on the country in which the project is established in.
Just because a project claims to be a STO does not mean that you can safely invest in it.

So here comes the third question to be asked.

3. Is there protection against fraud in the country in which the project is established in?

Some investors may prefer to invest in projects in which are established in a country with minor security regulations, if so one must be aware of any laws against consumer fraud. Are you as a investor able to hold the project responsible in the case of which they decide to simply run of with your money?
You better make sure there is, an example being St Kitts and Nevis in which there are minor security laws but still enforcement set in place against consumer fraud.

Conclusion
When considering to invest in a STO make sure to inform yourself on current security regulations in the country in which it is established in as not all countries have well established security laws and for those that do most do not allow common folks to invest in such security offerings such as the U.S. On top of being informed of security regulations in such country make sure that there are laws in place that have consumer fraud enforcement set in place to protect your investment in the case of any wrong doing.

STO's and ICO's are the same, do not be fooled just because a project states to be a STO.

They are almost same thing because they are carried out in the same way, the only difference I know between ICO and STOs is that STO is more regulated than ICOs because the SEC has provide a law guiding how STOs will be carried out and controlled, why in the case of ICOs, there is no body controlling it so it's totally based upon investment at your own risk bases. STO is more saver to participate in than ICOs.

there is no regulations and in 90% of the world if you raise funds like this without an actual business or company or anything like that then you would be doing something illegal and some countries have even explicitly announced that ICOs are illegal and that also covers STOs or anything new name that they come up with.

Well, actually ICO and STO are different. It is about the function of the token you will get.
In ICO, most of them are offering utility tokens so it can be used in their products or platforms.
But in STO, they offer security tokens, you don't need to use it to earn incomes, just hold it in your wallet.

STOs are trying to give people hope to keep investing in cryptocurrencies. In reality they collect people's money there's no guarantee there will be returns on the money collected.

Both are not the same. The STO is the more regulated type of the ICO and the more compressed type to confront the scam.
https://101blockchains.com/sto-vs-ico-the-difference/

I do like your conclusion, the most important thing here is the protection of the investors, this is what we missed in the ICO rally, alot of people got burnt and left the space dejected, I personally do not have issue with ICOs but for these developers not to want to be responsible for the money collected from people is the main issue I have, after collecting funds they stopped asking questions from people

I am thinking the same thing. I think ICO words has used badly. And market needs a new method. But STO built on old ways named ICO. I don't think there is a different between ICO&STO. New and cool words only.

I read about Bolton coin and Desico both claimed an STO project but looked at them many scam accusations are being made, they are both scam to me because they are trying to fool their investors by changing rules everytime.

STO's and ICO's are the same, do not be fooled just because a project states to be a STO.

Both are not the same. The STO is the more regulated type of the ICO and the more compressed type to confront the scam.
https://101blockchains.com/sto-vs-ico-the-difference/