ICO & STO
The use of ICO (initial coin offering) and STO (Security token offering) has dramatically increased over the past few months thanks to the various benefits which they have to offer. ICO and STO both are considered same as they both can be sold, trade, hold and also can be used to advertise or to spread awareness of the cryptocurrency throughout the world and both are offered at the starting of a new cryptocurrency but, there are a few difference between them such as ICO is less secure than STO which demotivates the people from buying/investing into coin which is ICO whereas STO is much more secure than ICO and thus more preferred. There are various features such as blacklisting groups, companies, people, organization and furthermore in STO. ICO is more focused on the uses rather than the actual benefits it holds.
ICO has several benefits such as rapid capital growth, transparency of the use of funds and various other benefits whereas STO is equipped with these and furthermore benefits such as more secure trading method and various other benefits which makes it much better than ICO. The ICO words as some may suggest is tainted because of the scammers’ con-artist who are ruining the ICO for everyone in the world. The STO makes sure these kinds of people are either in a blacklist or don’t have the rights or power to mess it up for other people. This feature has greatly motivated the people from investing or buying tokens/coins, by turning all these tokens/coins into STO from the day 1, the people can rest assured about their investment and the company avoids a lot of regulatory scrutinies which makes them happy.
Unlike ICOs, STOs are backed up by the company assets, profits, and revenue which reassures the people from investing in coins/token. These tangible elements are seen and used more like holding share in a company rather than being tokens to be played, trade or buy things with. The tokens hold company’s assets so, when it raises they can be refunded, which will give the token/coin holder the current market value of the coin/token which will be more than the initial price, for the token/coin it will be represented as profit in their account. This profit can be spent on or used in anything the holder desire. Most of the companies in the world who use ICOs are now turning STOs to satisfy the need and want of the customer.