Is Fundraising with STO a Viable Option?
Does the Rising Popularity of STOs Match the Functionality?

For those who are not particularly in the mood for reading a long-ass article that would take them around 20 minutes (don’t worry, this one is around five minutes long — we dare you to start that stopwatch).
We could provide an answer(s) to the questions in the headline right away. The answer to the first question: “Yes” and the second would be “Yes, absolutely”.
There you go.
For those who would want to swipe through a brief elaboration on these answers and questions, get on board and feel free to dive in.
Fundraising with STO a Rising Trend: Why So?
Without any question, the concept of STO fundraising was designed based on the idea of ICOs, to the same extent to which IPOs modeled ICOs.
Each of these fundraising methods naturally comes with its own perks and downfalls, in different ways of course.
ICOs allowed anyone — even the smallest development team or a startup — blockchain-based or not — to skip all the pomp imposed by the rules of issuing IPOs.
Thus, making the process more cost-effective, but also less legislated under what the governments around the globe prescribe when it comes to trading and investing.
ICOs, for better or for worse, are not enough regulated to be able to offer unconditioned trust. While the number of scam projects and hated shitcoins speak in the favor of mild paranoia, you might notice in the circles outside hardcore crypto enthusiasts — many investors see that there is a chance to make a profit with ICOs — that so many startups see their own chance to raise funds for all sorts of projects — some of which don’t even have ways of being conducted and completed.
This case places institutional investors in limbo as few big-scale investors are ready to risk their funds for unregulated assets.
STOs on the other hand, are treated much like securities would be, which makes investing in STOs and raising funds with STO tokens an advantageous situation. Investors may be more attracted to the idea that they are actually investing in something that is legally recognized as viable and legitimate.
Moreover, investors may rely on reliability and trustworthiness that goes hand in hand with the process of STO crowdfunding as Security Token Offerings need to be backed with real value.
Some of blockchain’s finest, indeed. It’s a win-win situation for sure, so a quick reminder: double yes on both headline questions.
