ICO vs. STO: What's the Difference and Which is Right for You?
Introduction ICO is a fundraising method where new projects or companies issue a new cryptocurrency or token in exchange for funding from investors. The token is often offered at a discounted rate during the ICO and is expected to increase in value as the project develops. ICOs are generally unregulated and often marketed to cryptocurrency enthusiasts. STO, on the other hand, is a fundraising method that involves issuing tokens backed by a financial asset or security, such as stocks or bonds. STOs are subject to securities regulations and provide investors with more protection than ICOs. STOs are often marketed to traditional investors who are familiar with securities regulations and investment practices. How is STO different from ICO? STO (Security Token Offering) and ICO (Initial Coin Offering) are both fundraising methods companies and startups use to raise capital for their projects or businesses. However, there are significant differences between the two: 1. Security vs. Uti