Here Is What You Should Note about the Initial Coin Offering And If The Security Token Offering will replace it
Security token offering STO, are the topics that are trending in the crypto-currency community. Some of the things that you should note is that when you look into this, then you should note that this is something that can lead to their being serious bulk between the blockchain startups s and the investors. Most of the investors were not sure if investing in the ICO is an excellent option since many people who use this platform were not legit.
The aim of the STO is to see to it that they have restored the confidence in the crypto-currency community. The reason that most people were using the ICO is that it is something that has freedom from regulation and government verification. ICO is something that is known to have numerous legal and administrative obstacles. The thing that you should note is that this is not something that is easy to prepare and thus, this is the reason that ICO was seen to be ideal. Though this is the case the ICO changed and removed the regulatory actors.
What you should note is that the STO came after the ICO. The thing you should note is that the STO is not an option that offers security but also the digitalization of the blockchain. One thing that you should note is that when it comes to the STO then you should note that they are the right securities. This is despite the fact that they are subjected to the same law and regulation as the traditional securities.
The thing that you should put in mind is the STO are preferred since they are backed by assets. The thing that you should note is that the ICOs do not have unsupported utility tokens without collateral or security law of protection. The thing that you should note is that when you compare it with other options, then you should note that this is most secure one.
The thing that you should note is that the STO is something that continues to reduce the barriers which are encountered with the traditional IPOs. Thus, this is something that has allowed the investors to be able to trade security tickets. The thing you should note is that they democratize the investor pool and built confidence. The one thing that you should note is that this is something that protects those who invest in it against frauds.