Around a couple of years ago, Initial Coin Offerings or ICOs were being traded in full swing. Remember Bitcoin’s iconic rise to $20,000 by the end of 2017?
Unfortunately, soon afterward, ICOs took a tumble almost as quickly as they rose, leaving many investors clueless and penniless. According to a recent study, almost 81% of ICOs that went public in this golden era turned out to be scams, 6% failed, 5% went dead, and only 8% went on to trade on an exchange.
Enter Security Token Offerings (STO).
As investors started to question the integrity of ICOs, security token offerings emerged as an alternative to the ICO crowdfunding model. Still, there is a lot of confusion about how they differ from STOs and why they are the best alternative right now.
Read on to know more.