What is an ICO STO?
What is an ICO STO?
ICO (Initial Coin Offering) is a digital fundraising. by offering digital tokens It is similar to an initial public offering (IPO) where investors receive shares, but with an ICO, investors receive digital tokens.
An STO (Security Token Offering) is a fundraising similar to an ICO, but an STO is designed to take advantage of both ICOs and IPOs where the tokens are valued by investors with other securities, such as gold. Value stocks or bonds, which are safer than ICOs.
Difference Between STO and ICO
The process for both is similar. But the purpose of the tokens that investors receive is different. ICOs focus on utility benefits. but not covered by securities laws Unlike STOs that are subject to this law, STOs are limited to fundraising through accredited investors only.
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