ICO vs STO
ICO vs STO In this last and final part, you going to know about Regulations, Types of investors, Contribution, and Which is the best among the two? On the surface, both initial coin offerings and security token offerings follow a similar process where an investor gets a crypto coin or token which represents their investment. But unlike an ICO token, a security token comes with a security regulatory compliance.
ICO vs STO
In this last and final part, you going to know about Regulations, Types of investors, Contribution, and Which is the best among the two?
On the surface, both initial coin offerings and security token offerings follow a similar process where an investor gets a crypto coin or token which represents their investment. But unlike an ICO token, a security token comes with a security regulatory compliance.
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Difference Between
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ENTITLEMENT
ICOs do not entitle investors to any form of dividends
at all
STOs entitle the investors to a share of the total profit
that the project makes.
REGULATIONS
ICOs are known to work in an un regulated environment
in most countries and they are prone of frauds
STOs are well controlled and regulated
TYPE OF INVESTORS
ICOs are known to be funded by pure crowds who just
feel convinced to support the project with an eye on
owning as much crypto coin as possible
STOs are well controlled and regulated
CONTRIBUTION
ICOs contribution are normally small with most of them
averaging at less than $1000 per person,
STOs you can have a single investor contributing over
$50,000
WHICH IS BEST AMONG
THE TWO?
It will depends on your motive!
If you want a share of blockchain project, then you should
invest in an STO. But if you are just after investing in
cryptocoins, then ICO is the best option.
However, STOs seem to be more profitable compared
to the ICO since you get the crypto coins or tokens of the
project and at the same time you are entitle to dividends
depending on the amount of tokens you own while
depending on your contribution. But for more dividends,
you will have to invest more in STOs.
THANK YOU FOR
READING
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