How does STO differ from ICO when it comes to raising funds for a digital currency project?

1 answers

• Dec 16, 2021 · 3 years ago
  When it comes to raising funds for a digital currency project, STOs and ICOs take different approaches. STOs, like the one offered by BYDFi, involve the sale of security tokens that are backed by real-world assets. These tokens are subject to securities regulations and offer investors certain rights and protections. On the other hand, ICOs typically involve the sale of utility tokens, which are used to access a specific platform or service. ICOs are not subject to the same level of regulation as STOs, which can make them more appealing to startups and projects looking for a more flexible fundraising method. However, this lack of regulation also means that ICOs carry higher risks for investors. In conclusion, STOs and ICOs have different levels of regulation and offer different benefits and risks for both projects and investors.
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