Bitcoin Forum

I am new here and hope I am posting this in the right place.

I heard about ICO (Initial Coin Offering) a lot. But STO (Security Token Offering) is new for me. I need to know following:

- What is STO ?
- Difference between ICO & STO ?
- Advantages of STO over ICO ?
- In what case we can make STO ?
- Steps for proceeding for STO

I know I asked lots of question.
Thanks in advance for support.

This is the first time I 've ever heard about STO, ICO is the raising capital method through selling token, there are 2 type of token : Security token and ultility token

The main difference between ICO's and STO's is the tokens are backed by something tangible

Here's an article explaining this in more detail...

https://medium.com/futuresin/security-token-offerings-sto-are-the-new-icos-d697ece5b6f9

I understand the points in the article but it is not written that there is a project that has successfully run STO, does it currently not exist?

AFAIk there was no any differences between ICO and STO. The only thing that looks different from them because STO has used the different name to avoid the legal problem. So many projects are using the different name just like TGE or token generation even to avoid the legal problem. But basically they are all security.

Thanks for this great explanation and it really open my eyes to the right information.

There is hardly too much difference between ICO and STO. Maybe you can browse by looking for a more detailed explanation. I appreciate your question, and it's interesting to give an answer. Start your career here with lots of reading and keep up the spirit. I am sure you will succeed later.

That´s an invented term, STO. There is no difference between and ICO that launches and utility token and one that launches a security token. The difference comes later, since the security is based on the promise of dividends or other profits, but the utility token is only for a certain use.

There is no such thing as an STO. ICOs sell security based tokens and utility tokens, if it's a security then I guess people have taken to branding at as an STO but there's no difference in terms of the two token sales.

Its not unusual to have some misconception. Security tokens are one of two offerings from ICO. Security token offers ownership in a company which is a a part of ICO.

With STO, you can purchase tokens during the offering that you can then trade, sell, or hold. Same things were noit possible with the ICOs. So, it can be said that the STOs are an upgrade of ICOs.

That's an invented term,STO. ICO is the raising capital method through selling tokens. I think there's no difference between in terms of the two token sales.

Both ICO and STO are similar to one another as STO's are prone to changing their names more often but the common characteristic both of them share is that they security based.

Security is a must for all kinds of exchange and business. So STD is the most effective in this sphere and it reduced the chance of any kind of scam and bluffing, though not completely, but at least at some points.

STO is similar to ICO because offers are made by businesses for many people, where consumers buy crypto tokens made on blockchain, but neither of them shares many similarities beyond that. While the ICO is selling coins, said utilities or even currencies, STO is the sale of securities.

STO are investors, not users, who pay and accept security, namely equity, debt, profit sharing, represented by tokens. While most investors at ICO like instant liquidity with websites that call themselves "exchanges" and are not regulated.

Stos are the icos for security tokens, as coming months will bring a boom to tokenization of projects and stocks, the trend will completely change to stos, i thing more and more businesses will attract to stos and traditional stock business may also move to tokenization in coming years.