Bitcoin Forum

Can someone explain me the differences?
I know, more or less, what an ICO is, but how does the STO protect the investor?

You can compare STOs to Shares. They are registered with the SEC and even rated, so eg scam attempts are not very likely.

So I suppose that in their web page they should mention it somehow.
An other question, is there any list with STO's in this Forum, or a web-page?

What is ICO?

ICO or the initial coin offer is a new way to raise funds, during which startups sell their tokens in exchange for popular cryptocurrencies, for example, BTC and ETH.

What are STO and DSO?
In simple terms, STO and DSO are regulated ICOs, although there is a long way to go before their full regulation. Thus, in the future something may change.

Currently, the defining aspects of STO and DSO are the fact that they are under the control of the SEC and represent a new innovative way of tokenization of traditional securities.

Advantages and disadvantages of STO and DSO
The fact that STO and DSO are regulated implies greater safety than ICO. STO and DSO are protected by SEC regulatory activities. Another advantage is that digital tokens can divide up to 18 decimal places, which makes the asset more “liquid”.
Another big advantage is the fact that STO and DSO offer greater flexibility for business owners. This should help attract more investment and lower the barriers to entry. Following a strict set of standards, rules and regulations, STO and DSO are much more transparent than many ICOs.
STO and DSO have their drawbacks, which is not surprising, because the STO and DSO market is relatively young. One of them is that DSO and STO limit investment opportunities, being available only to accredited investors.
The safety of both instruments is achieved by the fact that investors are required to undergo the KYC and AML procedures. Of course, the process becomes more complex and in this it loses the ICO, which provided any investor with the opportunity to participate, regardless of their origin, financial status or age. However, this made the ICO so risky.
Last but not least, because of their profile, STO and DSO require special platforms for sales management, which can make the process much slower and more expensive.

Can DSO and STO replace ICO?
The answer to this question is not as simple as it may seem. It is unlikely that ICO will completely disappear from the market, but STO and DSO may well be a serious competitor, since they contain solutions to many problems inherent in ICO.

Is there an particular exchange that STO tokens are getting listed or are the Security tokens going to also be listed on known crypto exchanges like bittrex?
I'd like to see list of security tokens :)  Are they're going to be more valuable than the regular Utility tokens?

This is one of the reason why DESICO did not pay their bounty hunters they are registered to the SEC and they only want real investors to their project and they don't dumping of their token, they should at least compensate their bounty hunters, now no one here trust them.

So we can consider it STO's are about more likely centralized cryptocurrencies. What includes it? I mean regulation about what? Do they regulate the project  itself or regulate how it works?

I do not think that they will be more valuable. Just for now investors trust a little more when the project says that it is STO

maybe it is just me but i don't care about the definitions, i care about what they really do. people say the STOs are regulated so they are safer but i say there is no regulation, and SEC doesn't even approve of cryptocurrencies in general let alone regulate anything related to them. even if they were, they still remain useless because they are not doing anything. we have a bunch of tokens that keep being created that do literary nothing and regulation is not going to change that. so in the end there is no difference between STO and ICO apart from the name.

Can you tell me which the document or at least an official statement from SEC if that has already registered on SEC. This company based in lithuania and you should provide an evidence for that. im interesting to see that.

STO is more or less like ICO the difference is that STO is issued under more strict regulations, STO is a security token where investors get shares from the revenue of the company which issued it at a particular set period of time while ico is less regulated which gives room for a lot of company to run away with investors fund.

I just understood the difference between STO and ICO. Indeed ICO is less regulated and makes many ICOs scam. But the STO seems to be very rare for me to see a project that does STO. And most projects do ICO.

the difference is that the sto are regulated by the sec so the investors will be somehow protected and there will be less scam, on the other hand there will be the obligation of kyc for both investors and for the bounty hunters

This is a good definition. Remember that STOs are more restrict than ICOs, but it usually means it can be safer, although not necessarily.

Since you already know what ICO is, it will be easy for you to also know the meaning and intent of STO.
Just as a reminder, ICO is a means through which a startup, body or business organization raise fund to finance a project through blockchain technology. Which is also the same as STO.

The only difference is that STO is supposedly registered under a regulatory body by law.

STO are registered securities similar to stock
There is some noise about STO but still we don't have them
I have been reading that platforms for STO trading will come
I don't think STO will be traded on popular crypto exchanges maybe yes but iw will be possible only for big accredited investors
we will remain with our lovely ico

Of course there is a difference, ICO = Initial coin offering and Security Token Offering (STO). The Security Token Offering (STO) provides a feature of an innovative approach to collect investment capital, especially for individual investors, while also providing transparency needed by investors to be safer and more disciplined. I think it's more convenient to enter STO.

STO's are more like holding the equity of the comapny or the project and becoming a part owner of the project with share in profits and more benefits so i would say that sto type of projects are more previledged and have more real world attraction also they have already got green signal from many countries. Upcoming time will be the boom of security tokens.

STO represent Security Token Offering, meaning one who buys in gets an equity or share in the project. ICO is the traditional Initial Coin Offering which just implies one buys the token of the project, it must not be a security token. I think many people are more eager to know about STO but some ICOs in the past still sold security tokens to the community. Let's see what the future holds for crypto.

Already many blockchain experts, investors and media outlets are calling the new year as the year of stos. Personally i would say that icos will be taken over by stos and the real deal will be security tokens for few years from now on.

I had never seen anything about STO in general. May you should to search some information about it on the highly specialized sites?

Some are already list in exchange like hotbit,GARD token is an example, you can check it out.
It terms of value, I don't think they will be more valuable, but you are rest assured that your funds are not invested in scam when you buy into STOs.
We all know the high scam rate in ICOs.

Yes, that is correct. However, scams and bankruptcy no one canceled. Agreed, still way less risk than with ICO.
I guess Security Token Offering will be a new trend in 2019, as ICO's on the current market is not making much sense.

Maybe there is some serious difference in this. But now it seems to me that there is no strong difference in this. I am sure that there are so many possible differences that will be realized in the future. But still it is only a thought.

You are right,Desico hurts many with zero information before taking any moves ,they just migrated to STO which no one saw it coming and the issue with many bounty hunters not getting paid is alarming ,if I can remember clearly they even forced KYC on participants after bounty end ,they have thrown investors trust out the window

Don't quite understand what STO is different from ISO, but to know there is a significant difference,I can only say that all things that happen are not always so to say are more use,ISO well coped with its task,unless of course would have been less moshenikov,but it is possible that STO could do better

I hear STO is supervised by the SEC, so they can guarantee investor funds safely. different from STO, ICO is too free because that's a lot of fraudsters who make Scam projects.

I also have these questions running in mind for a while now. I still do not understand the whole process with STO and how it works. Throw more light if you have the knowledge please.

Security tokens offering is finally the solution what ICO investors needed. Every investor that hold STOs is qualified for passive income from company´s profit.

The main difference of the 2 is that, ICOs are the sale of coins, purported utilities or even currencies however, STOs are the sale of securities. STO has no regulation afterall, ICO is better and we all knew about its success over the years.

Yeah there are STO projects already but not i guess only few of the team are sincerly would like to get in an STO project because they could not do well in making money for it will be for the good purpose since it is being regulated by the government. The team could also be put in jail so definitely this is why only few are doing STO.

STO is just the same as ICO but STO is mainly used the security thing in the funding system like they are wanted to get the KYC>

STOs are a method that wants to offer investors a set of guarantees. But the basic ICO is not different. Through the STO, the investor becomes a little safer thats it.