Initial Coin Offerings (ICOs) were victims of their own success. As cryptocurrencies took the world by storm, and innovative startups raised hundreds of millions of dollars via ICOs, scammers and con artists took notice, and abused the model. The market quickly became oversaturated with nonsensical and downright fraudulent blockchain solutions that damaged the public’s trust in the model and choked out quality projects.
The solution that emerged was Security Token Offerings (STOs). STOs are cryptographic tokens fully compliant with securities laws, giving token holders a stake in the issuing entity. Security token owners are entitled to such benefits as profit-sharing, voting rights, and the ability to trade their holdings on exchanges.
Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/security-tokens-wave-of-future/