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Security Token Offering

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A security token offering is when tokenized digital securities are sold on security token exchanges to raise money for the company issuing them. Traders and investors can use these tokens to trade financial assets. A blockchain stores the tokens and validates transactions between buyers and sellers of the tokens. Digital securities are more susceptible to regulation than cryptocurrencies.

security-token-offering

How are STOs different from ICOs?

STOs are real securities like stocks, tied to a company, whereas ICOs are cryptocurrencies that come into existence out of thin air. Both ICOs and STOs take place on cryptocurrency exchanges like Binance, Kraken, and Huobi. STOs are legal in most countries, whereas ICOs aren’t.  

Examples of STOs

INX Limited, L’Osteria, and Jibrel AG are examples of companies that held STOs. 

Security Token Offering Service Providers

Pathfund, MemePad, TrustPad, and AMPnet are security token offering service providers. Companies can organize an STO via them if they meet certain criteria.


Methodology
Business24-7 aims to help those interested in cryptocurrency make safe and informed investing decisions. We are dedicated to offering our readers unbiased reviews of leading cryptocurrency exchanges for traders at all levels. Cryptocurrency exchanges are included in our reviews if they are safe, liquid, regulated by proper authority, or decentralized. 

Disclaimer
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.

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Stefan Grasic (Dipl.-Jur) is the World Wide Director of research for Buisness24-7 and has considerable experience in the financial and investment niche, but also enjoys writing articles for the general readership. Stefan is an active Crypto, Forex and general investment researcher advising blockchain companies at their start up level. He keeps fit by mountain biking, surfing, skiing and lots of other adrenaline sports.

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