Show Posts
Seems an interesting project, I'm curious though about a few things.
- Can someone give me the major difference between a ICO and a STO? I have heard a few statements and a few of them seem to contradict.
- How can you state that you are Germany's first STO? Are you backed by an official body / entity? I have only heard of Luxembourg pushing for blockchain laws on a international level.
- Can someone give me the major difference between a ICO and a STO? I have heard a few statements and a few of them seem to contradict.
- How can you state that you are Germany's first STO? Are you backed by an official body / entity? I have only heard of Luxembourg pushing for blockchain laws on a international level.
Hi there,
I don't work for Bitbond but I have been following the STO since the start. They can make the claim that they are "Germany's first regulated STO" because they had to submit a full prospectus to BaFin (which is a bit like the German equivalent of the SEC) before they could launch the fundraising.
And the major difference between ICOs and STOs is that the S in STO stands for Security. So STOs are tokenised securities (such as equity or debt) wherease ICOs are often Utility tokens with no connection to real world assets. For Bitbond the token, BB1 is a bond - which is debt instrument - that will pay out 4% annual to BB1 holders, plus 60% of the profit from lending direct to customers on the Bitbond platform.
