IAGON Talks: Have you Heard of Security Token Offerings
Ithas only been a couple of days since the start of 2019 and we are already seeing a stir in the crypto space, one that could be beneficial to all of us as we work towards understanding the ins and outs of the token industry. Something that seems to pique interests across the board has been the newly introduced STOs, or in long form, Security Token Offerings.
Nope, that wasn’t a typo, I honestly meant to write STO, because Security Token Offerings are the entirely new craze that begun to sneak up onto society during the second half of 2018, attempting to showcase their strengths and values to the biggest players in the industry as a potential way to limit fraudulent activities, while protecting the security of investors. There are just a few basic differences that should be considered when looking at STOs vs ICOs, however, both options exhibit extensive abilities to revolutionize the industry and disrupt FinTech as it is currently perceived.
While some might think of the adoption of STOs as inevitable, there has yet to be enough data and success gathered to go full force with that assertion, however, unlike utility tokens in their current form, security tokens are generally backed and guaranteed through the company’s assets, such as company shares and/or other incentives. Additionally, there are a variety of ways to ensure the overall success of both, STOs and ICOs simultaneously by way of a dual token type of structure.
Just envision having a token that caters to the needs and interests of users and investors, delivering an unmitigated solution to all parties involved. Yes, this can be done an inevitably will be, as the utility side of the token would be utilized during interactions with various AI and DApps, while the security side would act as the vessel to draw in investors and forge partnerships.
Dare I say… The Best of BOTH Worlds?!
Well, as we mentioned at the beginning of this piece, it is only a couple of days into 2019, so we have a lot of time to research and discover the methodology that will accompany the uprising of STOs, and we will continue to bring you the latest developments as they arise.
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