LEARN WITH ME ABOUT STO
To know how the STO system works and is it safe for investors, we invite you to learn about STO with us. Surely the following information will not disappoint you.
Features of STO we will learn together.
STO is a form of fundraising through the offering of tokens to investors. STO brings quite a lot of benefits to investors and STO issuance platforms. When it comes to STO, we can’t help but wonder about the great advantages of this form. The advantage of STO for investors is to reduce risk for investors. All projects and companies that issue via STO are required to comply with the provisions of the law. People can consider this as the first filter to filter out scam or scam projects. Projects that issue STOs that are not completely on schedule may be fined according to the law.
Next is the voice of investors. Owning Security Token means you own a part of that project or company. Therefore, it also represents a part of the voice of Investors, the more tokens they hold, the greater the influence of investors.
Investors can participate in buying and selling. The stock investment is traditional and will limit the number of participants in different countries, as well as they require different and minimum capital to be able to start trading. For STO, the limitation of distance and geographical barriers will be removed. This form allows investors in many places to participate with different numbers of STO projects.
In addition, STO also reduces intermediaries and operating costs. Besides, it also increases liquidity for investors.
Besides the advantages, STO also has the following disadvantages.
STO was born but there is no clear legal framework. We are just tacitly understanding each other and applying it to an IPO-like STO. Besides these advantages, STO always puts pressure on projects. Therefore, projects need to always comply with legal regulations, so when projects encounter difficulties or change routes, projects must be held responsible and thus put pressure on companies.
The limitation of Security is that it is a security token, so it will have limited features and especially it must comply with the law. It will be difficult to use the security token as a utility token in the project’s ecosystem.
Potential of STOs.
As we analyzed the disadvantages above, this form of fundraising with security tokens is not suitable for all projects. Young startups that do not have a working product and have no revenue yet are not eligible to issue an STO.
This form of STO is very suitable for companies doing business that have been in operation and have high turnover. It means that the company has real revenue and goes into operation. Because of these characteristics, STOs are considered to be more advantageous than ICOs, which are said to be a lot of scam projects.
Through the information we have just shared, we hope you will have useful knowledge about this form of STO fundraising and successfully participate in STO.
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Important note: All content on the website is for informational purposes only and is not investment advice in any way. Your money, the decision is yours.
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