Part 3
Is STO the New ICO?
To simplify, one could define a formula: “ICO + Legal Compliance = STO”
In a traditional ICO, tokens or coins are offered by companies for purchase as a form of crowdfunding. Purchasers can exchange their cryptocurrency for a specified quantity of the tokens on offer. It’s a little bit like buying shares but when you buy a share in a company.
Voting rights would be a good example here as well as shareholder dividend payouts. When you buy tokens in an ICO, you don’t get any of those rights or obligations. Your new “utility tokens” give you access to a specific network, platform, or service.
Participating in a Security Token Offering is very similar to participating in an ICO. You can purchase tokens during the offering that you can then trade, sell, or hold. However, since security tokens are actual financial securities, your tokens are backed by something tangible like the assets, profits, or revenue of the company.
Read full guide:
https://www.coinspeaker.com/guides/security-token-offering-sto-complete-guide/
And visit our website to check out our ICO/STO services:
👉👉👉 https://flexe.io
