BitOffer English
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BitOffer English

Insight from BitOffer Chief Analyst, The Next Fortune Code-STO

In the initial stage of Blockchain, for lack of regulation, ICO (Initial Coin Offering) became a “Land Beyond Law” to raise funds illegally. To push the market to be compliant and regulated, STO (Security Token Offering) emerged to protect investors’ rights.

However, until now, few investors have figured out what is STO, and what does it do. To solve the hazes from the investors, Lucian, the chief analyst on BitOffer has forwarded an insight about it and held a view that STO would be the next key to wealth.

Then, What is STO?

STO is the abbreviation of “Security Token Offering”. S represents “Security”, it means the aim that issuing digital asset under the regulations legally. Thus, STO has been endowed with numerous imaginations and concepts such as Digital Security, digitalizing and tokenizing assets, etc. As for now, the definition of STO is the issue, sale, and distribution of the security tokens.

As the concept of STO expanded and developed, its actual definition has been given a comprehensive replenishment. For instance, import more different kinds of assets shall be a good path, and even combining the concepts of decentralized finance with STO. As same as DeFi, the combination of STO and DeFi will bring up more opportunities and make the imagination come true. Since then, the combinations like “STO+NFT”, “STO+DeFi”, “STO+DAO” and “STO+Synthetic Assets” have been proposed.

What Does STO Do?

STO has been widely regarded as the next trend of Blockchain, in order to solve the regulation puzzles from ICO. Comparing with IPO and DPO, the threshold of raising funds is much lower. Lucian, the Chief Analyst of BitOffer, indicated that “STO will be widely accepted by nations. It has the potentials to become another ‘trillions market’ as the spot trading and futures trading in cryptocurrency. Moreover, it is also the only way for digital assets compliance which must be passed.”

  1. STO does benefits to the regulations and compliances of the digital assets.

STO is an idea after ICO. However, it is much more different from ICO. Since STO has been proposed, it is destined to come with regulations. STO, an innovative mode to raise funds and invest which is based on blockchain, changes the expressions of traditional security. It broke the old-school processes like bank loan, private placement, etc., made the assets on-chain in a better adaptive way while providing an operating system with a much stronger basis. As an advanced edition of ICO, STO has the effective powers to restraint the chaos of the market due to the lack of regulations. Being filed at supervision department, it does benefits to the digital assets compliance.

2. The rights of Investors are promised, a fair-trading market can be made.

The whole STO ecosystem is formed with the issuer, investors, trading party, and technique providers. Under the regulations of the whole ecosystem, the sales of STO can prevent scam and manipulation to promise the rights of investors and a fair-trading market.

Based on STO, Asymmetric information between issuer and investors will be erased by the direct and effective connections.

3. The efficiency of funds will be improved.

In the traditional finance market, raising funds and investing has a lot of puzzles that are low-efficient and time-wasting that hinder the process. With STO, investors can complete transactions on-chain. In this way, middlemen such as brokers and banks will be removed to low down the time cost and economic cost. As the efficiency of funds has been improved, payment and settlement will be perfected also.

According to the news from Lucian, BitOffer has been licensed with an STO license in Singapore and Hong Kong. On the way of regulations and compliances, one-stop STO service like on-chain liquidation and cross-chain trading will be provided. During those processes, users will be able to participate in trading and assets custody through their own wallets. As STO links up with trillions of real assets, it is also considered as a potential trillions market. BitOffer, as the exchange which has been licensed with STO license, now is holding another fortune key to the wealth.



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