What do you think is happening around STO?

[Eco_111]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

[1714644440]

1714644440

[1714644440]

1714644440

[Kotone]

Probably investors dont like a closed attached investment. Yes STO are legit, but some cant find it more profitable due to very strict and sensitive approach on investing. I never heard such STO that successfully achieved what non STO token had become. No offense but I just based it on observation. More investors are interested on high profit platform like IEO, defi and all those hype now.

[Rowenta]

I've never see a STO project doing well either, not even on top 20 list on coinmarketcap, it's a shame, maybe investors don't like strict rules that STO projects are giving people? I sense that might be the real reason

[qazgroup]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

May be due to complications and regulators interference in the past like dozens of cases in SEC investors are cautious at the moment but situation will get better with time, US congress is also working on comprehensive crypto policy once that comes up we will see market booming and i think that will be time when STOs will start getting attention.

[Ceyflix-Rez]

When it comes to STO there are things to be worried about if you are a investor.

1. Full SEC involvement
2. Strict restrictions
3. Strict verifications
4. Complications

Not all investors like hard ways when investing on new projects, another example of non easy fundraising ways is bonding curve, make things easier for investors and they will patronize your project

[shadowduck]

because no one will give legal status to some new cryptocurrency startup. nobody needs it. governments do not want this and will not permit such projects. they have no chance of success.

[Inkdull]

STO is a complete failure crowdfunding, I think it's not needed in crypto space and on blockchain startups, ICO is even more better, government getting involved in a new start up projects and give legal backups is something they don't want, crypto should be decentralized and fully freedom space, whatever STO wants to achieve they should drop it for Central bank cryptocurrencies

[Ucy]

I guess the requirements are difficult or not compatible with crypto ideals?
In my opinion, true crypto-based "crowdfunding/fund-raising means" should be very decentralized... And a more general name for such funding means should probably be adopted to reduce the confusion in names. In my opinion, ICO is more suitable as general name compare to others, but it isn't the most suitable general name that can be used. Maybe Intial Public Cryptocurrency Offering(IPCO)?

Anyway, a true Intial Public Crypto Offering should be:
— Decentralized
— Transparent
— Anonymous/Private (kyc can still apply here without violating this principle
— Permissionless/trustless
— Immutable
— Secure
—Consensus driven
etc

These ^ and other important principles will make crypto-based crowdfunding good, more attractive for true crypto people and safe/secure.

[Wingsbtc]

The reason why STO remains a bad idea is lack of decentralization, every thing about STO is exposure, this Crowdfunding is more like a centralized strategy, every investors are exposed to some things that makes it clear that STO is far from decentralization

[SyndicateLabs]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

I think it is too troublesome for investors to participate in the STO, as far as I remember, the STO will have a lot of rules and investors need to follow those rules. IEO will be a lot easier and the profits it will bring are huge at the moment

[Jackl87]

I invested in 2 STO's myself because i like the idea of owning a share with all the rights that are attached to it.
I also know from my investents, that it's hard for them to find a good exchange, because apparently exchanges must comply to strict rules if they want to trade security tokens.

[Skinny48]

STO main problem is strict rules either listing on centralized exchanges or on those investors trying to invest in a STO project, it's not straight and easy like ICO and IEO, I'd rather invest on Facebook, Twitter etc shares than STO projects

[cryptomaniac_xxx]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Simply it's a security token, and everyone doesn't want anything to do about securities because it's going to be very hot on the eyes of who else, SEC. That's why it is very slow to be adopted or it is even close to 0 at this point. And you don't want your investments to go to nothing if you investment on STO and then suddenly government are suing that project.

[disconnectme]

The reason STO failed to gain traction is because they want to play the WallStreet card here, if you want that, take your shit coins to WallStreet people. ICO/IEO is flexible and people do not want to touch securities reason being that the legal waters to swim through is just to long to sail through. I would rather ICO and pay some fines just like most ICOs of 2017/2018 did than go for STO

[Westfiled]

because no one will give legal status to some new cryptocurrency startup. nobody needs it. governments do not want this and will not permit such projects. they have no chance of success.

A bunch of STO have been going to the hell and it looks like there was no chance for STO to recover. STO is dead right now and people have known it so well. So many times people call it the future but in fact that's only a scam money-grabber only

[Akiko]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

They called their crowdsale as security sale as if there is a security measure we do as investors to check how our investment will be secures by them  , and I don't find any successful  STO that have good market price after the crowdsale is finish . that's another factor since more of the investors is not always looking for security but gain they have in participating in it. If they know that they can't earn with even how secure they promise it will not work for investors that only looking for profit.

[mersal]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

STO trend doesn't last long, before that IEO took over the place of fund raising that is why STO projects are not successful compared to IEO.If the project is legit then they can find investors but it will take time so they had to launch the project at the right time not in the long bearish trend which time is really for a new project to sustain even the project has got potential.

[CrowdforAngels]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

With direct experience in the field, there are many reasons that they have not taken off in the same way. But if we put aside the price of crypto it boils down to a few things.

Firstly, STOs require a level of KYC/AML which puts off many investors and makes it difficult. For instance, many individuals in Asian countries do not have passports, thus you need to rely of document authentitication that is thrawt with problems.

Secondly, there is no large trading venue because securities require certain regulatory permissions such as a Multilateral Trading Facility License (MTF).

Finally, the relationship between the company, trading venue and companies house (in the uk) is still not established and therefore, its easier for now to utilise nominee structures to hide investors underneath.

I hope this helps

[Bossfidelity]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

In my opinion, investors in this space are more concerned about profitability than security. Most investors would prefer risking their funds to get much more reward. This is likely the plight of STO's, and that explains why we've barely had a very successful security token.

[carlisle1]

Seriously STO ( Security Token Offering ) has every legal evidence you could ever hoped for from new ICO and IEO projects, I'm just curious and surprised at the same time why STO projects aren't doing so well, they always failed to raise fund successfully even when they are more legit than others, what do you think it's happening with STO? Why so much failures?

Most of the replies are concerning to legalities, there are many investors from this space who doesn't like to expose their real identities

They ain't feel comfortable and knowing that legal aspects are possible to interfere with their investment, they choose to deal with old process which gave them comfort to deal with initial offerings.

In my opinion, investors in this space are more concerned about profitability than security. Most investors would prefer risking their funds to get much more reward. This is likely the plight of STO's, and that explains why we've barely had a very successful security token.

Yes, most of the investors from here are risk takers and willing to take the gamble, when they've got the right project
The outcome of their participating would give them instant benefits, They can easily cash it out and enjoy without any fear of legal interventions.