What are STO & ICO ?

What is a security token offering STO ?

In 2009 Bitcoins made Blockchain mainstream. While cryptos & other blockchain-related financing garnered the value of blockchain technology and other forms of distributed ledger technology in finance.

Banking & Technology institutions such as JP Morgan & Facebook, have already entered the blockchain technology on forward in payments systems, incl. CBDCs & stable coins, and the terms of liquidity, via token assets offering through security.

Tokens are concerning ICOs, a method for raising capital for crypto projects & trended in 2017 since then.

What is an initial coin offering ICO ?

ICO, is similar to initial public offering IPO, as both allow startup companies and entrepreneurs to raise funds while ICO is in a term of crypto, coins & tokens get issued in ROI and an IPO, securities are offered to investors for ROI.

The ICO craze in 2017 blockchain’s utility as a transformative technology remained strong. The confluence brought together innovative tokens in the form of a “security token.”

What is a security token?

A security token is a unique token issued on a permissioned or permissionless blockchain, representing a stake in an external asset or enterprise. Entities like government and businesses can issue security tokens that serve the same purpose as stocks, bonds, and other equities.

What are the uses for a security token?

A company wishing to distribute shares to investors can use a security token that offers the same benefits one would expect from traditional securities like shares, voting rights, and dividends. Since the technology that underpins security tokens is blockchain, the advantages are numerous.