When it comes to raising funds for the project, initially there are two different formats to choose depending on the type of token being sold.
1. Initial coin offering (ICO)
2. Security token offerings (STO)
Initial coin offering is the fundraising method for companies those who are looking to develop blockchain related new project or service. This ICO does not offer any rights in the project or company instead gives access to specific services.
Security token offerings is a similar method to ICO. This method involves the sale of tokens which can be hold, trade or sell. The investors are the main participants of STO and allowed to access the assets, profits/revenue share from the company.
Thus STO’s are growing its popularity and seems to be better than ICO.
If you are wondering to know the benefits of STO over ICO, Read here,.
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