INTRODUCTION
ICOs: Victims of their Popularity
It is no secret that ICOs were victims of their own success, when cryptocurrencies assaulted the market and innovative companies took advantage of this opportunity to raise hundreds of millions of dollars through ICOs the fraudsters took advantage to have a slice of the cake, the market was flooded with projects that promised blockchain solutions "miraculous" that failed to weaken public confidence in them and this affected the real projects that deserved to develop.
All these projects with incomplete ICOs that got nowhere and only stripped investors of their assets called the attention of the major regulatory authorities around the world who did nothing but "add more fuel to the fire" as they took very strong actions blindly against the ICOs and investors greatly affecting the cryptocurrencies market and everyone in general.
All these problems triggered a downward trend in the market that caused the loss of millions to many companies, all these companies had to recover somehow and regain the confidence of investors, the solution that emerged was the Security Token Offering (STO).
STO: The solution to the crisis?
The STO are in simple words values, this means that investors by obtaining these tokens acquire the stock market rights of the company that issues the token but in a more secure and transparent.
By acquiring a token, investors obtain rights over the entity that issued it, part of the benefits are the right to vote, share in the profits and also the option to exchange their holdings in the different exchanges.
For now the infrastructure to admit STO is still under development, these can offer a much more promising solution for companies seeking to attract new investors, as long as the STOs do not make the same mistake that the ICOs I believe they will create a much stronger commitment between investors and companies.
Conclusion
The STO are gradually demonstrating that they have great potential to go deep into the market and attract large investment funds despite being an alternative that does not have much time since its birth, although there is a high esteem for the STO still to see how it develops in the market, I invite you to leave your opinion in the comments on this subject.