STO stands for Security Token Offering, and ICO refers to Initial Coin Offering.Both the crypto-assets come with their own sets of pros and cons and talk about different issues of the crypto world.Read on to get a thorough understanding of STO and ICO marketing.STO and ICO Marketing Security Token Offering (STO)STO addresses the vulnerabilities of ICOs.STO services provide a risk-free network of investment to investors.Similar to ICOs, STO helps you raise capital for your project idea.The differentiator between these two is, the latter restricts itself to a closed group of investors who conform to set prerequisites.
The US Securities and Exchange (SEC) lays down and regulates these prerequisites.Marketing an STO campaign is different and difficult than ICOs.There are two reasons for this difference.First, it’s due to stringent mandates organizations within the network need to adhere.
Second, it only allows a smaller pool of investors.Additionally, STO trading is strenuous since established crypto exchanges aren’t supportive enough to them as compared to ICO crypto token trading.
Enabling trading of STOs requires a lot of documentation.However, if we look at the bright side, STO services are quickly gaining traction as the go-to medium for investors.
Being a reliable investment opportunity, experts believe that the market capitalization of STOs may reach $10 trillion by 2020.Advantages of STO servicesComparatively low-level risk and guaranteed investor’s investmentSTOs get registered with the SEC and are equal to the face value with traditional stock market shares.Experts believe its marketing capitalization would surpass $10 trillion by 2020.Disadvantages of STO ServicesLimits the pool of investors, the cost of marketing is relatively expensive.Needs compliance with legal and financial regulations, thus, increasing costs.Listing on crypto exchanges is quite tedious due to not being popular as ICOs.Initial Coin Offering (ICO)A business opts for an ICO campaign when it needs to raise capital to support its project.
It allows organizations to gather investment quickly with their unique business concept.However, this quick investment gathering also contributes to the factor of making ICOs highly volatile.