Of late we have been experiencing a decline in the ICOs that was informed by fraudulent activities that gave rise to concerns by the regulatory bodies. However, in its place a new kid on the block has emerged going by the name of the STO which is an acronym for the security token offering. The intention of this article is to highlight the compelling reasons that imply that the ICOs will be easily replaced by the STOs.
One of the upsides of the STO vs ICO is that STOs will render the ICOs obsolete is their easy traceability. This is informed by the fact that the regulatory bodies have stepped in to enforce the necessary compliance. This is absolutely essential to investors as they gain full visibility to the exchanges that are presently holding the coins as well as understanding the time interval that will be there.
Since the STOs come with embedded compliances, it means that they are able to be applied in different geographical locations that are governed by certain sets of norms and guidelines. This was not something that could be effectively done through the ICOs since they can not programmable. With the STOs you can easily modify the compliances with ease in order for them to be relevant in a particular location.
There is enhanced level of security when it comes to STOs as compared to ICOs. This can be explained by the fact that the relevant regulatory financial bodies are providing the necessary guidance. The net effect of this is that cases of fraud and Ponzi type scams are significantly minimized. The experience that investors have had with the ICOs in respect of scams was the order of the day and people will find a safe haven with the new entrant, the STOs.You can see this product for more information.
Nations that have dragged their feet when it came to the adoption of the block chain market are looking at the STOs with some hope. What has incentivized this change of heart and attitude is attributed to the level of regulation and compliance that is in place currently. This means that the crypto spaces have the opportunity of thriving even more.
Generating tokens through the STOs is relatively less expensive as opposed to procuring the same through the ICOs. This is important as it implies that issuing them is similarly cheaper thereby making this option a preferable for the cryptocurrency investors. Replacing the ICOs with the STOs will be faster that earlier anticipated. For more information check out this link: https://en.wikipedia.org/wiki/Information_consulting.