Introduction to Security Token Offering (STO)

 A Security Token Offering (STO) is the advanced version of Initial Coin Offering (ICO). It is considered a secure way to raise investment using digital tokens and combines the profit of initial coin offering with the force of organized financial securities. It is combined with the technology of blockchain with the requirements of organized securities markets to support repayment of assets and the wider availability of finance.

It helps secure the rights of investors by placing legal and financial commitments over the security sender.  It is created with a smart contract on the network, like Ethereum. 

It is certain financial security similar to holding shares and stocks in a company. A popular example of STO is Nexo. This platform provides instant loans with competing rates and successfully raised $52.5 million during token sales. The larger part of Nexo shareholders is major shareholders of Credissimo, the fintech group which gives Nexo more probability.

 

STOs are one of the reliable tools to raise the funds and also a secured option to invest your funds. As the crypto industry is expanding day by day, in the future it is expected that more fundraising tools will be evolved.

To get the ongoing security token offering listing to security token offering news, visit the Cryptoknowmics website for more information.