Security Token Offerings — STOs are the new ICOs

Michael K. Spencer
May 10, 2018 · 4 min read
PolymathNetwork
Cointelegraph, it’s pretty obvious Ethereum is not a security folks.

Security token offerings, STOs, are therefore the new kid on the crypto block.

If ICOs inspite of a lack of regulation still fueled startups with a massive $5.6 billion, what’s next? Many believe it’s STOs.

What are STOs?

In the latter half of 2018 and in 2019 we are therefore going to see a huge rise in STOs, and they may eventually out-duel ICOs. The reason is there’s more security for potential investors, and thereby less chance of fraud.

Indeed the PolyMath team proposes a brand-new business model known as the security token offering, or STO. This is important because it makes ICOs more legit in the real-world of investing.

If blockchain startups can have more credible ICOs, it doesn’t really matter what they are called. This also opens up the floodgates for companies and new projects in virtually any field to tap into how ICOs work, backed by tangible assets.

The Blockchain Universe is Starting to Move

In a world where ICOs are becoming increasingly necessary, according to the founder of Binance, it may be justifiable that some of those be implemented as STOs. Cryptocurrencies and ICOs must compromise with the existing framework of how securities work, thus STOs could be the new ICOs in the years to come.

Frotune

The Ugly Truth of Early Startups Funding

With IPOs declining and early funding for startups becoming a major pain point and bottleneck for innovation, startups around the world are starting to realize ICOs could be the path to redemption and viability for that difficult to get early-round funding. In a world that’s becoming more decentralized, STOs are a logical conclusion of how this could work as a fundamentally new business model.

“Securities Token Offering aka STO is the next step towards legitimizing investor offering schemes for digital asset initiatives..”

The story of token crowdfunding is diverse as there are ICOs, however the future of ICOs, will likely be STOs in many sectors. As CNBC reports, with ICOs having been linked to fraud, how the entire fundraising process works that helped launch new cryptocurrencies known as an initial coin offering, or ICO, is fundamentally being rebranded.

FutureSin

Futurism articles bent on cultivating an awareness of exponential technologies while exploring the 4th industrial revolution.

Michael K. Spencer

Written by

Blockchain Mark Consultant, tech Futurist, prolific writer. LinkedIn: michaelkspencer

FutureSin

FutureSin

Futurism articles bent on cultivating an awareness of exponential technologies while exploring the 4th industrial revolution.