What is the difference between an ICO and a STO?
We are in the age of change and innovation, so there are several companies of different sectors that constantly implement the latest technological developments. Cryptocurrencies and the blockchain technology have represented a before and an after when it comes to understanding capital raising for companies.
ICO, BTC or STO. Concepts that have transformed the financial sector, spreading it towards new horizons and have democratized the investments, which, until a few years ago, only used the most outdated traditional systems.
You are probably wondering: Are all the mechanisms the same? What is the difference between them? If you know these acronyms but there are still certain aspects that you don’t understand, keep reading this post.
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What is an ICO?
The ICOs (Initial Coin Offering) were the first to appear and marked a before and an after in the market because of their usefulness in the sector. Currencies like Ethereum, NEO or IOTA began as an ICO and thanks to this, they managed to get enough funds to develop the projects we know nowadays.
This market, in spite of the efforts of the different entities of the sector, isn’t regulated by the governments. The developers of these projects shouldn’t comply with any type of regulatory framework or follow a protocol, they should only prepare a White Paper that gathers all the important details about the project: financial aspects, advertising, technological development or the roadmap of the ICO.
When investors decide to enter this world, they acquire a token. This currency will have a specific utility that is detailed by those who control that ICO. The success of the ICOs in the market is really complicated since the lack of regulation and the ghosts of the past have caused a distrust on the part of the investors besides the fear towards this sector.
To make a winning investment in the market is very complicated. This environment is very voracious and the lack of regulation has made many investors to lose money. In addition, not many investors fully understand how to invest in an asset that doesn’t offer a fixed profit.
What is a STO?
In response to the situation of uncertainty and mistrust over which we discussed earlier, the idea of making the STOs (Security Token Offering) a new way of financing that tries to absorb the best of the ICOs and IPODs comes into the market.
This type of investment aims to demonstrate the usefulness of the blockchain technology, which is capable of offering a transparent, scalable and more efficient system than the current stock system. Unlike ICOs, the STO must follow a series of legal regulations such as public records, control by financial authorities and many other processes of listed companies.
The STOs are on the same stage as the ICOs. The power that the token owners can have will depend solely on whether a DAO is formed or not on the project.
OneUP stands for progress
Our project is a STO (Security Token Offering) that allows you to participate through 211.6 million OneUP Tokens in successive issuances of up to 5,000,000 euros. To participate in this business opportunity is closer than ever.
Go with your gut and invest in OneUP! Help us to bring our device to every corner of the world.
Don’t forget to give us your 👏 !
