Bitcoin Forum

As we all know, the world of ICO's is riddled with scams and mistakes, but many investors are still putting their money into ICO projects. What needs to happen for there to be a shift from ICO's to the more secure and reliable STO's?

I believe STOs are more regulated than ICOs so I hope for a lesser chance of getting scammed, maybe you'll stick with STOS, but if you want higher rewards, ofcourse that comes with higher risk too, a much much higher risk. You'll stick with the more crowded and well appreciated ICOs.

Do you think the market climate today favors one over the other? High risk, higher reward vs. low risk, lower reward?

True that ICOs are struggling with credibility. Most of them are just scams and naive investors fall for it. One of the reasons why the government is getting strict with their regulations specially on ICOs. So here comes STOs. Though they will be heavily regulated and will go through all legal government procedures, those who are willing to scam will still find their way to rip off people. These are the risks that are not worth taking. Scam projects has never been profitable to anyone. And why would someone actually risk knowing they will get nothing? Why even encourage those scammers by "risking"?

Totally agree with what your are saying and to add it is not just these projects are the one who will scam the investors it can also be the regulators scamming the project themselves so this is just to remind you that scams and fraudulent activities is a behavior which is already hard to remedy.

From what I've seen the STOs are only American based? The regulators are still f*cking snails when it comes to clearly regulating crypto, so in a way I don't think there will be a shift just yet. I personally think the average joe will lean more towards STOs when they are more common.

To be honest, I still don't have too much knowledge regarding STO, in fact, I have heard about STO for the first time here. Now I have googled it and seem it will replace ICO soon as people don't trust ICO anymore because of their shady business. Although all are not the same.

undeniably that there are scam icos around and i think STO is better than icos because it is more secured and STO participants are investors, not users, who pay and receive a security than utility tokens

Initial Coin Offering is basically a way for any crypto project to get money. Security Token Offering is only for those project in which there is some physical reality represented by tokens; when the tokens are backed up by some items. Even though lots of tokens are indeed like this, there are also utility tokens which have the right to be there and become successful. I tend to think that utility tokens are closer to what cryptos are supposed to be, because they can be used as money in the app after the ICO stage. Securities should definitely be regulated and probably taxed. Utility tokens shouldn't be taxed and there should be some different, milder approach to regulating them.

adzino - You absolutely noticed. That scammers will always find a way to steal your savings. To be honest, I see no reason to complain to investors. What is safe now you want to play the game that multiplies your money. And nothing to risk? This unfortunately does not happen. The player who lost at the casino will return to the casino.

The principle of every business is, the higher the risk, the more the profit. Which is why i believe so many people would want to prefer ICO over STO.

I think some people may not know the full meaning of STO. It's called Security Token Offering, which means it is only meant for security tokens. While ICO can accommodate security tokens, utility tokens, equity and so on.

The fact that we are in a system  decentralization in the crypto space, which so many crypto enthusiasts prefer. Whereas STO is centralized. Which means tje lovers of decentralization would prefer ICO.

In order not to fall victim of scam, investors just need to take to precautions.

STO is the corporate version of an ICO which is both good and bad. It moves away from the concept of decentralisation which is the vision of Satoshi and his bitcoin, but it gives investors peace of mind that it is highly unlikely to be a scam

If the intentions is actually to eradicate scamsand fraudulent activities
Then creating a similar methodology to ico is not the way out

As it would also be exposed and used to defraud people

Investors needs to be smart and wisen up
Buy tokens because you are confident about it not cos someone told you

Always dyor ( do your own research )

STO will provide more security because it will be regulated but STO does not fit well in the Crypto space, for example, STO cannot just be traded on the unregulated exchanges like normal coins/tokens which will be a great downside for many Crypto users, but with the current increase number of scams and useless ICOs I think real investors will just move to the safest option sooner or later even if it does not have all the feature they want because after all projecting their capital will be the most important thing.

People are still trying to benefit from investing in ICO. There is likely greed prevails over reason. When this stops happening, then they will look for new ways to raise funds.

I  do not think that small investors will switch to STOs as they are playing with their pocket money and want high reward and taking even the risk of losing their investment. Of course, nobody likes to be scammed this is why we  need  regulations for ICOs as well.

It is.

That's going to be the new craze for investors since ICOs are crowded now and became a home for scammers. For someone that wants to know more about STO's you can search it on google or any other search engines or have a quick preview: STO is the New IPO. (https://blog.icoalert.com/sto-is-the-new-ipo-6b194a9b57cb)

For me, I'm not a huge fan of STOs. I prefer ICOs rather. ICOs gives me much more flexibility among other benefits like higer returns (If the project succeeds that is) But I'm yet to try my first ever STO. I might just try it so as to keep up with the trend coz it seems ICOs would soon be a thing of the past. Either way, I would just wait it out.

Well it seems like an STO would be a lot safer since I doubt they could get away with any kind of scam. As much as I despise regulation, I really don't like having people steal my crypto.

The ICO will always have a lot of interest even though many people have suffered losses in it.
I think it is the habit of investors who cannot change to invest in ICOs, because most people know that if they take a big risk the results will also be large.

it is true that many fraud ICOs have sprung up, but as an investor we have to really research so as not to get caught up in fraudulent ICOs, I think the number of new ICOs is emerging, there are still many investors who believe ICO even though not as busy as last year

It is not a possibility of failure that makes investment in ICO risky. Investing in new businesses is also risky. While Vitalik's statement that 90 percent of the ICO will fail to surprise the cryptocurrency community. However, the fact that the ICO is open to all their subjects is to be closely monitored, and new types of investors expect overnight success. It is very regrettable, but I do not agree if the ICO is shifted to STO, I am sure there will be a better solution for the ICO so that investors do not lose.

From what I've read the infastructure and regulatory framework isnt ready yet for STOs... Think we are still a few years away.

There's a company in Canada who are waiting for regulatory approval to launch their STO - https://corl.io (https://corl.io). It's a slow process, indeed, but also being the first in its kind to get approved takes time.

Security tokens don't actually fall under ICOs. That's part of why a lot of ICOs are facing issues with regulators because their "utility tokens" should actually be labeled as a security.