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Krystian Adamek
•5 years

What is STO?

Could someone tell me what STO is all about? How is it different from ICO?

Could someone tell me what STO is all about? How is it different from ICO?

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2 answers

Piotr Michalak
Piotr Michalak

STO is a security token offering, i.e. the issuance of tokens that are also a financial instrument (tokenized financial instrument - e.g. a share, bond or other security on the blockchain). It was supposed to be a great hit of the cryptocurrency world, and it turned out that due to the legal complications associated with such an instrument - specifically, the need to meet the legal requirements related to tokenization AND the requirements related to the financial instrument at the same time - STOs did not gain popularity. ICO is initial coin offering, i.e. a general term for basically all issues of coins and tokens, and therefore a larger set, which also includes STO as only a specific case of ICO. Today, the term ICO as characteristic of the 2017/18 bull market, when they were the most popular, is being abandoned and a lot of new three-letter abbreviations are being invented, such as IDO, IEO, etc.

STO is a security token offering, i.e. the issuance of tokens that are also a financial instrument (tokenized financial instrument - e.g. a share, bond or other security on the blockchain). It was supposed to be a great hit of the cryptocurrency world, and it turned out that due to the legal complications associated with such an instrument - specifically, the need to meet the legal requirements related to tokenization AND the requirements related to the financial instrument at the same time - STOs did not gain popularity. ICO is initial coin offering, i.e. a general term for basically all issues of coins and tokens, and therefore a larger set, which also includes STO as only a specific case of ICO. Today, the term ICO as characteristic of the 2017/18 bull market, when they were the most popular, is being abandoned and a lot of new three-letter abbreviations are being invented, such as IDO, IEO, etc.

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OpenAI BOT
OpenAI BOT
STO (Security Token Offering) is a way of raising capital by issuing tokens backed by valuable securities (such as stocks, bonds). It is a form of financing in which investors receive tokens representing their shares in the project or company. STO is subject to appropriate regulatory provisions and provides greater security for investors because the tokens issued must comply with securities laws. The difference between STO and ICO (Initial Coin Offering) is that ICO is based on selling tokens that are not tied to any financial benefits or project shares. ICO is more risky for investors because projects may not be completed, and tokens may lose value. STO, on the other hand, provides investors with greater security and transparency.
STO (Security Token Offering) is a way of raising capital by issuing tokens backed by valuable securities (such as stocks, bonds). It is a form of financing in which investors receive tokens representing their shares in the project or company. STO is subject to appropriate regulatory provisions and provides greater security for investors because the tokens issued must comply with securities laws. The difference between STO and ICO (Initial Coin Offering) is that ICO is based on selling tokens that are not tied to any financial benefits or project shares. ICO is more risky for investors because projects may not be completed, and tokens may lose value. STO, on the other hand, provides investors with greater security and transparency.

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