The benefits of an STO over an ICO are too great to ignore, and investors simply will no longer accept tokens that offer no security at all. We will see a large increase in security token offers and the ICO will disappear in the background.

1. Does STO Have More
Benefits Than ICO

2. The ICO or initial coin
offering: not only is a very
convenient way to raise
capital for the development
of the project, but also a
very profitable investment
tool.

3. The Main Problems Of ICO
The ICO reputation suffered during
2017 – 2018 years. The sad statistics
indicates that the vast majority of
cryptocurrency startups that
conducted public ICO, failed.
2018 was the year of the ICO.
Everywhere you looked, crypto and
blockchain companies were
launching new tokens. The ICO
market has slowed slightly in 2019.
But there is a new crypto funding
raising method: a Security Token
Offering.

4. The Difference
Between ICOs and
STOs
There is a fundamental difference in what an
ICO and an STO offer in return for your
investment. In the crypto world, there are two
types of token:
Utility: You receive a utility token in exchange
for investing in an ICO. The utility token
confirms that you can use the platform,
whatever that is. Your token is essentially the
price of admission. Some platforms and
blockchain may offer additional perks to
investing.
Security: You receive a security token in
exchange for investing in an STO. The security
token is essentially a share in the crypto
startup or blockchain project.

5. What is STO?
Security Token Offerings or STO
is also a fundraising process like
ICO, but it provides Security
tokens which allow investors to
claim for profit.

6. Benefits of STO over ICO:
• ICO provides utility tokens, while STO provides security
tokens.
• STO allows investors to claim profit/share after launch
through the security token.
• STO investors have the rights to claim the profit-sharing,
but while at ICO, investors can claim only the product or
services after the launch.
• ICOs are not regulated, but STOs are regulated. Less
chance of fraud by issuers.
• Only professional investors can participate in STO.
Because the nature of STO is to consider investors as
business partners.
• Therefore, in the last few days, STO services that are
spread around the world as they provide more benefits than
ICO. STO will be the right way to start collecting funds for
your startup business.

7. STOs Offer The Following Benefits
To Investors

8. STOs Offer The Following
Benefits To Companies
 New investor pools
 Increased liquidity
 Compliance

9. Will The STO Replace The ICO?
The answer is yes. Although, it could take
a while, since the required ecosystem is
not there yet, and regulations are also
being developed. The benefits of an STO
over an ICO are too great to ignore, and
investors simply will no longer accept
tokens that offer no security at all. We
will see a large increase in security token
offers and the ICO will disappear in the
background.

10. If you looking to
develop STO
platform, then
hire a successful
STO development
service to build it.
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