STOs vs ICOs
Funding blockchain innovation
In just the first half of 2018, a little over 2000 projects raised a total of $12.8b.
But, as a wise man from New York once said:
“More money, more problems.”
There’s a lot to talk about regarding ICO-fundraising. A few examples being the outrageous out-of-proportion amounts of money involved, the extremely low success rate and of course, the scamming and scheming issues that surround ICO crowd-funding. The U.S. Securities and Exchange Commission (SEC) is still hovering around quietly and we hear a lot of discussions about whether specific tokens are ‘truly’ utility tokens. If there’s an expectation of profit there, you’re likely at risk.
However, there’s an alternative to this. If you’ve been active in the blockchain space lately, you’ve probably heard this term discussed quite frequently.
STOs
STO stands for Security Token Offering, and it’s a new and legitimate way of funding blockchain innovation.
STOs require licensing by regulatory bodies like the SEC, and in layman’s terms, it comes down to tokenizing all kinds of traditional assets into security tokens.
Security tokens give the buyer ownership over whatever the token represents (e.g. equity, derivatives or real estate) in digital form. STOs create more liquidity, accessibility and traceability. Being fully compliant with regulatory frameworks (licensed), they also hold protection against fraud.
Besides, there’s much more accountability when a company fails; from not reporting according to the rules, or just failure in general. All of this would make it more plausible that institutional investors — and thus money — will flow in.
ICOs
ICO stands for Initial Coin Offering. When doing an ICO, a company doesn’t have to sell equity, and users can buy tokens for use, which — the latter — is great for both parties. Utility tokens represent access to a company’s products or services; they are not an investment in the company itself and users aren’t entitled to anything. Actually, there’s no value until the company delivers what they promise, which they might never do.
Zero accountability, zero value, zero protection — you’re basically buying hope.
Most ICOs are either behind schedule or have already failed, and if these projects want to run away with your money, there is not much anyone can do to stop them.
So, the question we must ask is: Is this the right moment for a new alternative?
Read the full article on our blog
https://beyondblocks.com/stos-vs-icos-funding-blockchain-innovation/
We’ll talk more about this subject at Beyond Blocks Summit Bangkok in the STOs vs ICOs panel!
Beyond Blocks will be hosting the next major blockchain conference in the heart of Bangkok, at the InterContinental hotel. After this sold-out, record-breaking event in Seoul, the momentum continues it’s way to Bangkok, where the world will witness exactly why Southeast Asia is the region on the rise for blockchain innovation.
Beyond Blocks Summit Bangkok 2018
- Dates: November 26–27, 2018 (2 days)
- Venue: The InterContinental Bangkok
- Tickets: Visit the official Beyond Blocks Summit Bangkok website now to book your ticket.
- Sponsor or Media? Reach out to us at contact@beyondblocks.com
