STO vs ICO - Key Differences All you need to know!
When starting any business primarily, we need some amount of funds. But in this modern world, the chance of raising funds is quite an easy process. This is because of the emergence of crypto crowdfunding platforms like ICO, STO, IEO, IPO, and more. Crowdfunding is a valuable source to develop business easily. Of these various types, the most popular and widely used fundraising methods are Initial Coin Offering & Security Token Offering.
Let me explain what is ICO, STO, and their facts
Initial Coin Offering
ICO represents crowdfunding for a crypto-related project or business. In an ICO, any startup, young entrepreneur, or developing company can raise funds for their initial stage of business development. In order to raise funds, they should sell their crypto token to interested investors. The important attribute of ICO is that it is a completely unregulated process. Simple and easy to run. So that you can raise funds without any hassle.
Security Token Offering
STO is one of the trustable crowdfunding methods in the crypto space. In recent days, STO is becoming the most preferring choice for business people to raise funds for their projects. An STO is essentially a crowdsale of tokenized securities(security tokens) That represents any kind of physical or financial asset. Generally, STO is considered a legally compliant ICO and fully controlled by governing bodies. Being subject to strict regulations, there is no chance of any fraudulent activities.
Now. you might get the major differences between STO vs ICO. however, there is some difference between an Initial coin offering and a Security token offering when it comes to fundraising. After knowing the clear points about both these methods, you can compare these to choose the suitable platform for your business model.
If you wish to launch any of these platforms to raise funds, the smarter way is to choose the renowned Crypto Crowdfunding Platform Development Company. They will help you to create your crowdfunding platforms with impeccable outcomes and provide better results. Also, they will provide top-notch technical solutions for the entire development process for your business.