Bitcoin Forum

Hi,

I've compared a few ICOs and STOs.

In my opinion, they are nothing different when it comes to security.

What do you think?

STOs are ICOs that promises share in the project company.
As for your concern of security, STO are also of two types. One is legally registered which needs to follow legal procedure and investors can sue the company if they aren't treated like a stake holders and another is just a scam STO.

Thank's for the response.

How I should check STOs to choose the right one?
They should have a prospectus on securities like standard IPOs?

Are you serious?

They're not different when it comes to technical security, they are different in the fact that one is a security and the other isn't. And that "security" is not related to being secure or not.

See this https://www.thestreet.com/topic/47042/securities.html

STO or ICO are not in the current investment trend, although STO seems better than ICO when you can participate in the operation of the company mobilizing STO. But that's not enough, the ICO market is almost dead, now IEO is probably the better choice you should consult. Binance's current IEO is probably worth the investment.

Wow, ICO market is almost dead?
I see a lot of issuers on the internet.

STO, ICO, IEO, IPO, ITO who cares?
If the coin doesn´t have any use, it doesn´t have any value. We really do not need million of tokens. Few coins like coins from top 10 is enough to cover 99% of the market needs.  :)

I agree but even BTC or ETH had some type of ICO.

I disagree with this, even if it's not the market trend STO can offer much more security compared to ICO's and IEO's, to be honest i would invest in much safer investment type like STO even IEO is not that secured even if the funding was held in a top exchange, it doesn't guarantee the development of the project unlike STO.

Investor lost trust in the inability of the process to get new token listed early and some other scam that ICOs indulge

Ok so, where are the investors now? They moved to STO?

in terms of security is the same but for STO it's similar to ICO but it's more regulated than ICO
maybe this picture can make you know better

https://101blockchains.com/wp-content/uploads/2018/05/STO_vs_ICO.png (https://101blockchains.com/sto-vs-ico-the-difference)
source: https://101blockchains.com/sto-vs-ico-the-difference/

Thank you  :)

We have this information: "STO offers legal right such a voting".
So, if I have this legal right I should be the shares owner also. Right?

Yes I agree with you. We can say that in terms of security all of coin here in crypto industry are all the same not secured and we can say that security featues is not enough to protect and to secured the coin of every holders or investors. Until regularizayion and legalization we are not secured about security features that crypto industry give.

Ok, thanks.

So, we have:
1. ICO
2. STO
3. IEO

What else?

STOs are offering more security to investors that are taking part in their token sale, because they are officially regulated and are following a bunch of rules while holding their sales. There are no official rules of how you can hold an ICO.

STO is not regulated generally (only in few country). STO tries use law like IPO.

There's not much difference between ICO, STO and IEO.
There were many ICOs fulfilling the criteria of STO even before the term was coined. IEO are just exchange promoted ICOs.
The reason for people getting interested towards STO is a large number of legit STO are legally registered in their local authorities as securities.

Agree. The team and track record is more important than raising capital type.

the one i knew is TGE (Token Generation Event) (https://solarex.io/blog/cryptocurrency-and-ico/what-is-the-difference-between-an-ico-and-a-token-generation-event/) and based on article created by binance there is IEO, (https://medium.com/binanceexchange/ieo-ifo-iao-ico-token-issuing-considerations-2b556055f199) IFO, (https://medium.com/binanceexchange/ieo-ifo-iao-ico-token-issuing-considerations-2b556055f199) IAO, (https://medium.com/binanceexchange/ieo-ifo-iao-ico-token-issuing-considerations-2b556055f199)  ICO (https://medium.com/binanceexchange/ieo-ifo-iao-ico-token-issuing-considerations-2b556055f199) and 2 of them like a free tokens for everyone.

On the basis of the concept there is no difference but the way to do it is different even though the goal is the same, now is the time to compare the current trend, such as the IEO, while the STO and ICO are past programs whose trust is slightly reduced.

Well there is no big difference between STO and ICO, just that STO is more regulated than ICO, the main reason we have a lot of investors leaving the ICO market is because they have experience a lot of loss, not because the people behind the project made away with the fund raised, but because the price in the exchange was low even below ICO price after waiting for months, there is nothing as painful as that, I have experience such twice this week which made me give up on ICO totally and won't invest again.

Cosbycoin you are right but I think most investors were making fast trade.
They bought tokens in first round and sold after first stock quotes. So, when most of the people sell, the price will go down.

I would disagree a little. That is if we are talking here of real and vetted STOs and not the fake ones because anybody can just claim that his/her project is STO but in fact is just another ICO. When we talk of STO, we are talking here of a project which is legally recognized and under the regulations and laws of the land. Now, of course, there is no guarantee here that the project can succeed. But what are the main advantages here? One, the people behind the STO are all real and has legal personalities which means cases can easily be filed against them if ever they run with the money they generated with the crowdfunding -- with the ICO platform running after fake names can be so difficult. STO should be registered within the country it is headquartered...something that ICO may not do. STO is putting more responsibility on the hands of the projects' proponents and making things more transparent.

You see I already lose my hope on Icos they never work out base on my experience its just waste of time you know. STO on the other hand need to have a possitive review for me to try on it. because if it end up like some of the ICOs then most people will also turned off with it. I guess the only good way to unvist our money with is on the IEOS.

They were doing exactly that, just no different from ICOs at all, no different from IEOS, and to be fair also no different from normal IPOs in the stock market,,, a lot of people speculating on the popularity of these tokens, especially the ones that sell out in minutes.

Of course when there is so much selling, people rush to get the price right, resulting in dumping. Normal market mechanics.

When we join in STO, its like we having stocks in that company. Its different between STO and ICO because most token we hold beside STO is not a security and most of it are utility token. I think its more safe invest in STO because its regulated

They both follow the same process but I don't think they are really the same thing. The similarity is that you buy a token as an investment but as for the difference between the both of them is that ICOs are not being regulated by any government body and they just issue out coins, just like that.. But as for STO, They don't just start issuing out coins, they will have to register with the required government bodies that makes they are 100% lawful. ICO is easy to launch and anyone can just do that, but STO is not like that, you will have to go through a lot of process. So it's not easy in any way.

That's right. One big speculation :) We will see how the IEO will develop but at the end the quotation course will be similar to ICO.

I believe STO investors have more security than ICO or IEO, as stated on one of the reply :


The risk of being scammed in an STO is very slim unlike in ICO since it is not regulated.  If ever an STO project became fraud, authority can trace all the people behind that project so there is a factor of "fear" on the side of the project developer and that factor can drive them to do better.  While the unregulated ICO project developer will just do whatever they wanted to even run away with your money  the instance the crowdfunding is done.  So in terms of security.. STO is way more secure than ICO and even the IEO.

Check this to learn more about STO (https://cryptonews.com/guides/what-is-a-security-token-offering-sto.htm?fbclid=IwAR1O1-JRkV6dsXDlsMlLnRI44ATkanBgRWNA1wpbQlpV4zKgyvlQX_JPdiw)

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Can you elaborate why do you think IEO is good balance of those two and how secure IEO is?

Most ICO and STO are really nothing different when it comes to security. However, there are exceptions in the form of legally registered STO.

I am agree, there is no different between ICO and IEO, the different thing is on IEOs administered by exchanger. For developers team, its more easy doing IEO because they can focus on the project and developing it.

Agree. What about other risk with IEO?
Founders sell tokens to investors but first investors can sell it also with discount during IEO.

You are a newbie and your level of understanding is at most average and you can't conclude that initial coin offering ico is the same as security token offering sto.
Like the name implies security token offering it has a more security conscious approach as to the of initial coin offering icos which has failed many investors and bounty hunters because of the high level of scam

Please, stop it and you have created a misleading post about STO. Did you know what meant of STO and that's "Security token offering and that means the company was offering the security token to be bought by investors and it's not a utility token. You should go to the Investopedia and learn more about what it is.
That's much better for you to know the difference between utility and security.

I think not all coin offers that have STO platforms are not all scam, there are some platforms that can be successfully developed, I admit it is difficult to be able to see the project scam or not because they are sometimes good at the beginning but when they are at the end they start addressing not good and has a scam.

It is difficult to judge,since 17 and the beginning of 18 years of ISO in General on the wave of HYIP and growth was,and all ran who are not lazy,but of course there were many scammers,so here we can say one thing, that ISO of course now in stagnation and gone in the past,and STO more reliably in this regard,there are no scrotal,as more checked

Agreed with you. Really nobody care STO,IEO,ICO......  If they don't have any use. So first need any legit project then people will invest into the project it can be ICO, can be IEO or others.

My side is on IEO, coins are going for this crowdfunding, but if I have to pick between the two I'll definitely go for STO because they are more regulated than ICO, there's a lot of scams in ICO and it keeps growing every day, and they keep scamming people

in my opinion STO is superior and the security level is better than ICO. its name is also security token offering, so it is certain from its name and also the characteristics of STO offering guaranteed security.

Security more preferrend as long term investment. For raising funds, i think there is no different between ICO or STO in crypto but right now many STO offered on IEO. If i should to choose to invest, i think i will invest in STO because it should be regulated by financial authority

well, now ICO is the last choice after IEO and STO. STO is also the newest form of ICO, and people now also prefer STO to ICO. well, for now, only a very good project will make ICO successful.

So far, only in the information space we hear about the advantages of ico over IEO companies.  As soon as we get real results, then it will be possible to say with accuracy which concept of promoting new projects is not only profitable, but also safe.

Well i do think STO is more like stock and also they do need legal from their country. I do think STO will come out pretty much in 2019 which i think ICO are already dead and if institutions want to enter crypto world STO is the best to fund money and the best way offer to investors. I do hear that coin from STO is only act as stock and cant be act as token.

security for what ? if we talk about return i think an ICO or STO even for IEO project, will not ggive us a guarantee for return mate
because after hit the market, the price will always depends on supply and demands from the project itself,
so, we must know all things about the project before investing, always DYOR buddy
regards

for me STO security is more guaranteed than ICO. because STO itself is a security token offering that shows that security is more important for the convenience of users.

i think that is have a long distance bitween ICO and STO.
if you mean is initial coin yeah that is same, but for security i think that is so much different.
ICO is not have security system they just make a smart contract with based other blockchain like erc20 and they can play ICO, so simple.
STO is have more and more security system to lauch they own STO.

I see no difference to it STO and ICO seem the same.

STO offer security tokens which represent a share of company holdings while ICO do not offer such. STO is regulated to an extent with legal backings and this is not the case for ICO. In terms of investor security, STO is better than ICO.  Both gear towards token sale anyway. 

STO and ICO are very different, so saying they are same isn't true. ICO is just a crowdfunding means to raise funds for a crypto startup with no legal backings most times. STO on the other hand represent a means to issue security tokens which represent company shares and has legal backings.  Also, not all exchanges can list security tokens.

We have seen it clearly, now a new project mostly use STO. Even for low budget project, they do STO except for scamming project with low life will still use ICO, because the goal is indeed to scam investor.

WI want to knoq IEO better than ICO or STO or they are just the same with only difference in system?

I think  STO is a secure and good option for investors compare to any ICO that usually became scam later.

Yes.I agreed with you but what is the different between in system?

Advantages of ICO:
::Decentralization,
::Low state regulation (advantage for small independent investors),
::Ease of investment (there is no minimum investment value).

Advantages of STO:
::Rights over company profits as well as dividends,
::Increased security,
::Regulated by the SEC (advantage only for large investors in the traditional market).

So in my opinion STO is more secure then ICO.

Where i can see most of the project use STo rather than IEO, are you saying bullshit about that? STO dead and you can see now some STO didn't even raise the funds. Crypto investors are still interested in IEO that listed instantly after the crowdsale rather than STO without a lot of guarantees.

I haven't invested into IEOs or STOs yet, as I see them as just another rebranding of ICOs.I think all are same like ICO.

STO is actually a new, improved version of the ICO. It has been made due to the large number of ICO scams in recent times.That;s why

I think STO is still running. There are several STOs that can reach up to millions of dollars in sales. For many investors, the IEO is profitable for the short term and some investors choose long-term investments by buying STO because of STO is like bonds or company shares

Thank you for your reply.

I think STO is more reliable than ICO, because the STO security concept can be our foundation in investing, ICO has been a lot of failures, I think STO can be a solution.

I have heard about STO but don't really understand them. Can you explain it to me?

Not sure but I think STO will be safer