{"id":3142,"date":"2018-11-08T21:56:55","date_gmt":"2018-11-08T21:56:55","guid":{"rendered":"https:\/\/atozcrypto.org\/?p=3142"},"modified":"2018-11-08T21:56:55","modified_gmt":"2018-11-08T21:56:55","slug":"security-token-offerings%e2%80%8a-%e2%80%8astos-are-the-new-icos","status":"publish","type":"post","link":"https:\/\/atozcrypto.org\/security-token-offerings%e2%80%8a-%e2%80%8astos-are-the-new-icos\/","title":{"rendered":"Security Token Offerings\u200a\u2014\u200aSTOs are the new ICOs"},"content":{"rendered":"
\"\"<\/a>
Michael K. Spencer Blockchain Mark Consultant, tech Futurist, prolific writer.<\/figcaption><\/figure>\n

With ICOs going through regulatory growing pains, with fraudulent feedback from the mainstream media and low success rate, we must strive to find more satisfactory means of funding blockchain innovation that are more legitimate.<\/p>\n

The U.S. Securities and Exchange Commission (SEC) hearings are changing the future of how cryptocurrencies work at the intersection of more stringent regulations. As ICOs open back up again in Korea, today Ethereum as a security or not, May 7th, 2018 will be decided (according to rumors).<\/p>\n

\n
\n
<\/canvas><\/div>\n<\/div>
Cointelegraph, it\u2019s pretty obvious Ethereum is not a security\u00a0folks.<\/figcaption><\/figure>\n

Security token offerings, STOs, are therefore the new kid on the crypto\u00a0block.<\/h4>\n

If ICOs inspite of a lack of regulation still fueled startups with a massive\u00a0$5.6 billion<\/a>, what\u2019s next? Many believe it\u2019s STOs.<\/p>\n

While for ICOs the way it usually works is tokens or coins are offered by companies for purchase as a form of crowdfunding, however with STOs it\u2019s an upgrade whereby you can purchase tokens during the offering that you can then trade, sell, or hold. However, since\u00a0security tokens are actual financial securities<\/em>, your tokens are backed by something tangible like the assets, profits, or revenue of the company.<\/p>\n

What are\u00a0STOs?\"\"<\/a><\/h4>\n

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\u2019s more security for potential investors, and thereby less chance of fraud.<\/p>\n

Indeed the\u00a0PolyMath team<\/a>\u00a0proposes 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.<\/p><\/blockquote>\n

If blockchain startups can have more credible ICOs, it doesn\u2019t really matter what they are called.<\/span>\u00a0This also opens up the floodgates for companies and new projects in virtually any field to tap into how ICOs work, backed by tangible assets.<\/p>\n

The Blockchain Universe is Starting to\u00a0Move<\/h4>\n

In a world where ICOs are becoming\u00a0increasingly necessary<\/a>, 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.<\/p>\n

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<\/canvas><\/div>\n<\/div>
Fortune<\/figcaption><\/figure>\n

With companies even like JP Morgan,\u00a0filing for patents in blockchain<\/a>, it\u2019s clear mainstream adoption of crypto is becoming more viable as big banks and enterprise platforms get more involved.<\/p>\n

The Ugly Truth of Early Startups\u00a0Funding<\/h4>\n

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\u2019s becoming\u00a0more decentralized<\/a>, STOs are a logical conclusion of how this could work as a fundamentally new business model.<\/p>\n

STOs protect investors from\u00a0pump-and-dump schemes<\/a>\u00a0of ICOs. According to the Merkle,\u00a0STOs are seen as more stable and legitimate than ICOs, as they can provide investors reassurance from the get-go that they won\u2019t run into problems down the line<\/em>.<\/p>\n

\"\"<\/a><\/p>\n

In this sense, STOs that provide investors with greater security are inevitable as ICOs scams increase and even\u00a0ICO ratings are manipulated<\/a>. There\u2019s increasing recognition from industry leaders that ICOs should morph into STOs, where Security Token Offerings (STOs) will be more fraud-proof and meet regulatory criteria from the beginning so as not to be liable for legal trouble like so many ICOs are now.<\/p>\n

\u201cSecurities Token Offering aka STO is the next step towards legitimizing investor offering schemes for digital asset initiatives..\u201d<\/em><\/p><\/blockquote>\n

The story of token crowdfunding is diverse as there are ICOs, however the future of ICOs, will likely be STOs in many sectors. As\u00a0CNBC reports<\/a>, 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.<\/p>\n

Interested parties\u00a0Sophia Ha Ho<\/a>,\u00a0Polymath<\/a>\u200a\u2014\u200awhat is your take on these? Are they the future of ICOs, why or why not?<\/p>\n

\"\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With ICOs going through regulatory growing pains, with fraudulent feedback from the mainstream media and low success rate, we must strive to find more satisfactory means of funding blockchain innovation that are more legitimate. The U.S. Securities and Exchange Commission (SEC) hearings are changing the future of how cryptocurrencies work at the intersection of more …<\/p>\n","protected":false},"author":1,"featured_media":3143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[15],"tags":[],"aioseo_notices":[],"yoast_head":"\nSecurity Token Offerings\u200a\u2014\u200aSTOs are the new ICOs - AtoZcrypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/atozcrypto.org\/security-token-offerings\u200a-\u200astos-are-the-new-icos\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Security Token Offerings\u200a\u2014\u200aSTOs are the new ICOs - AtoZcrypto\" \/>\n<meta property=\"og:description\" content=\"With ICOs going through regulatory growing pains, with fraudulent feedback from the mainstream media and low success rate, we must strive to find more satisfactory means of funding blockchain innovation that are more legitimate. 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