ICO evolution: STOs, IEOs

Despite the bad press generated by exit scams, many ICOs have generated incredible returns for investors. However, it should be remembered that they are not get-rich-quick schemes: the best projects are those that have the potential to yield returns over a long time period. It’s about investing in a viable business that serves a need and has talented people behind it.

The ICO landscape has evolved, and there are many similar processes by which investors can invest in crypto projects. Security Token Offerings (STO), for example, give investors the chance to hold digital tokens representing assets (stocks or bonds) in a crypto company, with their ownership recorded on the blockchain ledger. 

In other words, investors get to hold a regulated security rather than an unregulated altcoin that could, for all intents and purposes, be worthless.

While ICOs are targeted at the general public, STOs are generally geared towards accredited investors. At the very least, investors must pass stringent Know Your Customer (KYC) checks to appease regulators. In this regard, they are less accessible than ICOs.

Another evolution of the ICO is the IEO or Initial Exchange Offering. Ostensibly, these are ICOs that list directly on a digital asset exchange, which is responsible for weeding out bad actors. High-profile exchanges lend credibility to a project, as their reputation is on the line if the project turns out to have no merit.

As far as ICOs are concerned, there are several platforms that list ongoing opportunities. One of them, Top ICO List shows all upcoming STOs, ICOs and airdrops along with details of the projects in question. Alternatively you can Coinmarketcap f, which provides similar information.


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