The Initial Coin Offering (ICO) and the Security Token Offering (STO) feature some similarities, but ultimately differ drastically. The following explains how.The Difference Between an ICO and an STO Explained
In 2018, ICOs raised nearly $8 billion. But as many know too well, the ICO wave has since come crashing down.
ICOs now raise about 58 times less than they did just a little more than one year ago.
In the midst of such an atmosphere, the STO emerged. So far, the nascent industry has featured 64 STOs which raised an accumulative total of $1 billion. In Q1 of 2019 alone, STOs saw a 130% increase.
So, what’s the [...]
When the Gram ICO was announced at the beginning of June, the cryptosphere was wary about the Gram tokens being sold by a third party on the crypto exchange Liquid. Now investors will find the Gram price will be set at $4, though a 50 cent discount will be given to those who pay using Liquid’s QASH cryptocurrency.
Read the full article here. Via ethnews.com
The once highly sought after method of raising funds in the cryptocurrency space, ICOs, are on the backburner.
Following ongoing regualtory uncertainities in the US market, token offerings are migrating.
This might well be a death knell for ICO’s because they have already been waning in popularity and the current US exodus of token sale will land a heavy blow on them.
What is an ICO?
For traditional companies, there are a few ways of going about raising funds necessary for development and expansion. A company can start small and grow as its profits allow, remaining beholden only to company owners but having to wait for funds to build up. [...]
Initial Coin Offerings brought a brand new concept of fundraising in the digital world. And, moreover, it’s safe to say they did it with a bang. Having raised billions of dollars throughout 2017 and 2018, however, their time seems to be definitively gone.
A broad range of projects which raised money in an ICO turned out to be blatant scams, completely shattering any community trust vested in them. On the other hand, regulators such as the US Securities and Exchange Commission (SEC) clamped down, subjecting a lot of them under traditional securities regulations and hence, putting the entire craze to bed.
However, now that the first quarter of 2019 is behind us, [...]