Security Token Offering (STO)
The financial market has been shaken with ICO. But the latter has been facing a lot of heat due to many scams and fraudulent activities. To earn back investors trust in cryptocurrencies, Security Token Offering aka STO came to existence.
They were created to bring in the institutional investors on board the blockchain and cryptocurrency era. These tokens are financial securities that are SEC compliant, a crucial aspect that was missing in ICO.
These tokens provide investors with an array of financial rights that are written in digital smart contracts and similarly the underlying tokens that are traded on the secured blockchain.