The Only Bad Thing About STOs

FIAT Financial
Fiat Exchange
Published in
3 min readFeb 10, 2020

All of us in the cryptocurrency industry can still clearly remember the end of 2018, when the wild wild west so-called the ICO rage was over and done with. Companies who were actually real and credible, and as such their coins that had promise, began to slowly establish themselves while the fakes went scurrying and scattering like roaches.

Unfortunately, the whole charade left companies and investors with a huge hole where a problem is: “How then would new and innovative companies be launched if no one trusted ICOs anymore?”. It wasn’t until such time that an answer arised as if a phoenix from the ashes. It was a concept called an STO (Security Token Offering). Similar but with very striking differences when compared with ICOs, such that investors exchange money for coins or tokens representing their investment yet the tokens it issues are securities and are linked to an underlying investment asset. This makes them much more safe and similar to stocks, bonds or other investment vehicle funds.

It was then that STOs seemed to have become a miracle drug, the answer to weed out all the scammers and give assurance to investors that they would get a real and tangible product or result for their hard-earned money. However, tight regulations meant that many of those who invested in an ICO wouldn’t even be able to go near investing in a STO as only accredited investors with huge net worth are allowed. This led to entrepreneurs not liking STOs as it has turned into the most stringent regulatory requirement with a very lengthy and time consuming process of launching.

But please take note that this is all for the safety and security of both the investor and the investee, so considering that this is the only downside to an STO, it’s really not that bad now, is it?

In the world of Crypto, finding the right people to do the job can be troublesome and difficult at best. This is why at FIAT Exchange, we offer an all-in-one service encompassing everything there is to launching a token offering, as well as ensuring that everything is safe and transparent with all of the legalities done first. As a pioneer in the consensus industry, we offer the tools to democratize access to finance and through our platform, investors, start-ups and established companies are able to find opportunities they otherwise never would have.

At FIAT Exchange, we have consultants to help innovative start-ups, promising businesses and even well-established corporations launch their own Initial Exchange Offering, Initial Coin Offering, Security Token Offering or Reverse Token Offering effectively, efficiently and successfully. As a constituting body, we act as partners and assist each and every project from compliance, fundraising, and to final listing in our Digital Marketplace.

While there already are other operating equity crowdfunding platforms in the European Union, we are the first to expand to become a broker-dealer and introduce to our investors an alternative Smart Securities layer, offering a secondary market where investors can trade their startup securities.

If you are an Investor looking to unlock access in the FIAT Exchange ecosystem and discover new investment opportunities or if you are an Entrepreneur looking to raise capital, we can definitely help! Please feel free to contact us: support@fiatxs.com

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