STO (Security Token Offering)
Sale of asset-backed tokens that meet securities regulations.
Detailed Description
STO (Security Token Offering)
What distinguishes an STO from an ICO?
STOs involve security tokens that represent ownership in assets and are subject to regulatory scrutiny, while ICOs typically issue utility tokens that are not classified as securities.
What are the key benefits of conducting an STO?
STOs provide access to global markets, increased liquidity, lower costs, and enhanced security for both issuers and investors.
What risks are associated with Security Token Offerings?
Risks include regulatory uncertainty, market volatility, technological risks, and limited historical data for making informed investment decisions.
How does regulatory compliance impact STOs?
Issuers must ensure their tokens qualify as securities under applicable laws, which may require registration with regulators or qualifying for exemptions.
What are some common use cases for STOs?
Common use cases include real estate tokenization, equity crowdfunding, debt financing, and investments in art and collectibles.