STO vs ICO Marketing | A Rundown of Difference to Help You Choose the Right WayPosted by blockchainoodles on April 29th, 2019 When investing in crypto-tokens, you may often deal with crypto terms like an STO and ICO marketing. Although, if not explained correctly, it can get quite confusing, don’t let it stop you from exploring these new thriving territories. 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 MarketingSecurity 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 trillion by 2020. Advantages of STO services
Disadvantages of STO Services
Initial Coin Offering (ICO)A business opts for an ICO campaign when it needs to raise capital to support its project. A key advantage of running an ICO is that it involves no red tape. 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. It doesn’t mean that ICOs are not legit. Many innovative startups are opting to follow this format to attract investment. Launching and marketing an ICO campaign is comparatively easier than STO. It doesn’t require to follow complex rules and procedures. An ICO development company may use different social media platforms to advertise the campaign effectively. Also, bounty programs are another way of generating significant community interest in an ICO. Advantages of ICO services
Disadvantages of ICO services
Who Wins, STO or ICO Marketing?STO aims to address the shortcoming of ICOs by providing investors with more security and transparency. Businesses can opt for STO development services as their preferred model of crowdfunding as they are trustworthy. However, it does increase the regulatory burden in the crypto domain, instead of avoiding intermediaries. And, currently, ICO is being “spoiled” by bad actors. On the flip side, STO services are offering physical assets instead of thin air and false promises. And thus, catching the attention of investors and driving the blockchain landscape toward a new direction. Considering utility tokens the crypto world is evolving rapidly. It means we may soon witness a mutually beneficial relationship between STO and ICO marketing. Source: https://blockchain.oodles.io/blog/sto-and-ico-marketing/ Like it? Share it! More by this author |