The Shift from ICO's to STO's?

[Chom_]

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

[KKH84]

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.

[andeonnut]

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

[squanhin]

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.

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.

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.

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

[squanhin]

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?

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.

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.