Why Security Token Offerings (STOs) Will Replace ICOs
By Steven Krohn on ALTCOIN MAGAZINE
In June 2018, the SEC declared that most ICO projects were similar to securities and they will be subject to SEC regulations. Enter Security Token Offerings (STOs).
The crypto markets had a strong, even if a mixed reaction to the decision.
Many investors and crypto developers welcomed the change because crypto projects gain instant credibility when approved by the SEC.
However, many new and existing platform developers were concerned that they would be subject to strict SEC guidelines.
It might be easier for them to just abandon a project altogether.
Problems With New And Existing Projects
ICOs were considered an simple way to raise finances through crowdfunding. Developers did not need to have advanced financial and legal knowledge. They could create platforms offering tokens for specific causes.
Many new tokens were created on platforms such as Ethereum or Stellar and could be freely traded by investors. The new SEC rulings…
