More than 80% of ICO's launched in 2017/8 Were Scams, STO's are the next step.

[hoaryal1]

In the last two years more then half of ICO's was shut down or tagged at scams

There is currently an intense debate raging within the crypto community. This debate is centered around the emergence of a new method of raising money for blockchain projects, this method is called a Security Token Offering (STO).

Some people believe that STOs, will eventually completely replace the original Initial Coin Offerings (ICOs). Others believe that STOs in their current form actually take away from a lot of the original positives that crowdfunding through an ICO provided.



Here in thisSTO guide, I explained everything about STO's the differences and regulations regarding it and why it so good to the crypto world

What would you think will happen in the next few years, STO is just another faze or it will be the final form? 

[D3m1r4wanti]

if indeed STO is a better method than ICO.
and if the STO method is the best way to prevent some fraud from happening, I strongly agree with this step.

[el kaka22]

STO is definitely the next logical step but will it be enough to stop the scams are a question. First of all like I always say not all "scams" are actually scams, ICO is a thing that requires a lot of luck and expertise and some of the people who started coins actually bankrupted the funds and failed to create a good coin but because they failed and went away people called them "scams" where as they were just incompetent people. STO will at least have a higher entry barrier where scammers and incompetent people will be eliminated a bit, not all of them but a lot of them.

Right now, ANYONE can start a new coin and create a new ICO with the STO thankfully that number will decrease and if a person wants to scam people it will take a big more time and effort, and if you are incompetent and a failure it will take a while to be even a STO which still elaminates the "everyone can start a new coin" level to "some can start a new coin" levels.

[thefoex]

STO is not a good solution, investors still want anonymous investments. I think instead of switching to STO it's better to make regulations to tighten the ICO project launch

[bolshojkush]

The idea is good, but can small companies, with the help of STO, raise funds for development?? Steve jobs built his first computer in the garage and nobody sponsored it. ICO is good because anyone can turn their idea into a successful project, without any outside interference and raise money with the help of people who believe in it. I think that the ICO will not die, but simply change.

[CryptoAlphaStar]

Don't think that there will not be scams in the STO space, too. There will be, and there will be a lot. Not blatant scams, though, because more regulation is forced upon. Think of more sophisticated and veiled scams. ICO examples - EOS, Steemit.

[kindbtc]

Yeah i agree with you on that i think fully registered and licensed stos are the need of the hour that not only will provide you real ownership to investors in the comoany but also share the profits and last but not the least due to regulations chances of scam are also very low.

[Ozero]

if indeed STO is a better method than ICO.
and if the STO method is the best way to prevent some fraud from happening, I strongly agree with this step.

In this case, I am interested in the question of how the role of bounty hunters will change with STO. If it does not change, then you can try with STO.
However, I believe that the ICO is still early to bury. They also have a right to exist, especially after states regulate it and frauds in these ICO projects are also significantly reduced.

[hoaryal1]

Don't think that there will not be scams in the STO space, too. There will be, and there will be a lot. Not blatant scams, though, because more regulation is forced upon. Think of more sophisticated and veiled scams. ICO examples - EOS, Steemit.

I never say it, but you must admit that is indeed an improvement of the current system

[aoluain]

I am skeptical.

Im sure there will be proper viable projects funded by STO's but I think
there will be plenty of scammers out there who will use it as another
weapon to relieve people of their funds.

I got a bit burned with some ICO's but i feel relieved and privileged that
bitcoin and some established alts have remained strong for me so I
wi continue to believe in those.

[BartS]

The method of gathering funds seems irrelevant to me, I do not care how new projects get their funding the great problem are the scammers and the developers that have no idea what they are doing and since I do not see that changing at all the same that is happening to icos now will happen to this new model, but many people like me have learned their lesson and I will never invest in an ico or any project that is asking for free money just to develop something that in the long run may not work.

[Olayinka225]

Yes 2017/18 isn't a very good year for ICO's  as many scam ICO occupied the world crypto market. But we see that STI is just coming by to relegate ICO, but to me, I don't think it's STO's that can stop this scamming thing but plainly that crypto needs regulations.

[Saint1990]

Cryptomarket is very volatile, easy to manipulate & easy to make scams by fake ICOs because of lack of proper regulation. Security Token offering will help surely to tackle the scam problems as they will have to go through the security laws & the market manipulation will also be reduced significantly as there will be separate exchange platform to trade specially security tokens.

[thunderbitz2717]

STO is not a good solution, investors still want anonymous investments. I think instead of switching to STO it's better to make regulations to tighten the ICO project launch

I agree with you that ICO regulations is one of the solutions to at least filter and tighten the list of ICOs in the market. With rules and regulations layed out on the floor, somehow weak developer team and nonsense projects will not be allowed to do crowdfunding. The regulations is focus on the team and project, not on the investors.

[Saisher]

If it will become the new trend and investors embrace they have to pass the Howey test of SEC and I doubt if all ICO can do that, only the best project can pass the test, but my real concern is the future of bounty hunting if STO become popular in cryptocurrency investing.

[BQ]

One thing I can't really understand nowdays is why people never are left to their own decisions? why does someone have to protect everyone?
in a sense, it's a bit like stupid people (not just in crypto) who fall for scams, causes regulations and therefore problems for the normal people.
kinda like how every single service nowadays forces using phone authentication etc..

[bob3772]

Everything is constantly evolving. I'm not fully convinced STOs are even a step forward. One thing I am sure is that a lot of people think they are so we'll see a lot more of them. There is still always room for improvement. Nothing should ever be the final form. STOs will come and then they'll go and something will supersede them.

[taguig]

That's possible we cannot continue with this current trend investors are losing money and losing their trust to ICO soon all ICO however good is the project will get no funding, because of investors losing trust and market not moving at all, we need a big action now something that could change everything.

[HandsomePeople]

the risk is still the same, just like ICO's, if you don't know when to buy and when to rid of them, you will lose your money. Those who are advertising STO's are the same who was behind ICO's, replacing a name that has bad reputation with new face, it's the same old game and old players.

[goolesby]

We cannot ignore that there are many scams in ICO projects that make every investor or participant get the big risks. However, so far, this is the only way to come up with the new project promoted. If the STO is much better and can decrease the scams, why not? But, give us the proof and solution.