As you my friend probably know, ICO's and crypto, in general, is not in a good spot.
Currently, it seems like the market is changing and heading throw Security Token Offerings (STOs).
From YouTubers, investors, and gurus to reputable news outlets, there is a massive amount of exposure regarding these offerings around the industry.
This guide will seek to give you all of the necessary information you may need if you are contemplating a deal involving an STO.
What is an STO?
To understand what a STO is, firstly, we must look at what a security is.
In terms of finance, a security is a certification or some other financial instrument, that has an intrinsic monetary value. These securities can then either be traded by exchanges, who will broker the transaction or, they can be traded directly from peer-to-peer. These securities are then broken down into two subcategories, equity, and debt securities. This is in effect, owning part of a
company, without actually taking it into your possession.
Companies use these methods so that they can raise capital from investors, to fund other parts of the business, such as expansion plans. In return for their investment, the financiers are normally offered to make their money back, and make a profit through means such as: dividends, interest rates or a share on the company profits.
The full STO guide hope you will find it interesting.
