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Security Token Offerings (STOs): ICOs Getting Mature
April 3, 2019

Security Token Offerings (STOs): ICOs Getting Mature

STO stands for ‘security token offering’. It is a type of ICO but in STO the coin issued is actually security, meaning that the process of offering and the issuer itself shall be subjected to the securities regulation of the country in which they conduct the STO.

STO stands for ‘security token offering’. It is a type of ICO but in STO the coin issued is actually security, meaning that the process of offering and the issuer itself shall be subjected to the securities regulation of the country in which they conduct the STO.

The first thing to mention is that STOs are regulated and regulation comes with additional costs. Additionally, STOs’ regulatory complexity limits global accessibility as well. On the other hand, regulation polishes the image of ICOs as risky and manipulative investments. By doing so, it makes ICOs more attractive to a broader group of investors from reluctant individual investors to big regulated ones. In the end, STOs provide us with something in the middle of ICOs on the one hand and traditional securities on the other.

By Osman Gazi Güçlütürk

Read the full article on Medium. 


 

Pacio is interested in the funding vehicle called STO. As every other company, Pacio does financing rounds for their Tender Economy. Security Tokens are an interesting option to sell Tokens with rights, such as dividends or equity.

* The incredible artwork comes from the mind of Taiwanese artist TYKCartoon

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