From 2017, ICO is “Big-talk” on crypto market. There’re a lot of ICO projects raise and fall. Some ICO are scams cause investors dissapointed. A big graveyard is getting built in the virtual cryptocurrency world. In July, 2019, there were reports about more than 800 cryptocurrencies being declared dead, and a new report suggests that nearly 50 per cent of all initial coin offerings (ICOs) in 2017 and 2018 have failed to raise a single dollar.
The investors want a secure way to put their money on the crypto market. And then, STO show up.
What is an STO?
A security token offering (STO) is similar to an initial coin offering (ICO), except that an STO are backed by real assets like commodities or equities.
Similar to an initial coin offering (ICO), an investor is issued with a crypto coin or token representing their investment. But unlike an ICO, a security token represents an investment contract into an underlying investment asset, such as stocks, bonds, funds and real estate investment trusts (REIT).
A security can be defined as a “fungible, negotiable financial instrument that holds some type of monetary value,” i.e., an investment product that is backed by a real-world asset such as a company or property.
A security token, therefore, represents the ownership information of the investment product, recorded on a blockchain. When you invest in traditional stocks, for example, ownership information is written on a document and issued as a digital certificate (e.g. a PDF). For STOs, it’s the same process, but recorded on a blockchain and issued as a token.
STOs can also be seen as a hybrid approach between cryptocurrency ICOs and the more traditional initial public offering (IPO) because of its overlap with both of these methods of investment fundraising.
What are the advantages of an STO?
Compared to an ICO, STOs are seen as lower risk because the securities laws that security tokens have to comply with often enforce transparency and accountability. A security token will also be backed by a real-world asset, which makes it a lot easier to assess whether or not the token is priced fairly in relation to the underlying asset. With pure utility tokens, it can be difficult to assess the true value of a token and whether or not it is priced fairly.
Compared to traditional IPOs, an STO is cheaper because of the removal of middlemen, such as banks and brokerages. Smart contracts reduce the reliance on lawyers, while the blockchain reduces the need for paperwork. This makes the whole process not only cheaper, but also faster.
Fractional ownership and the ability to trade 24/7 bring additional liquidity to the market, especially with traditionally illiquid assets, such as scarce paintings, property and collectibles.
Finally, it’s good for blockchain adoption in the long-run. STOs are legally compliant, which means they are perceived to be less of a risk and will encourage institutional investors to come on board.
The more institutional investors start to invest, the less volatile the market is likely to become and the further blockchain adoption will grow.
There are many STO projects running such as Nisebank, Smartchem, Stellero, Chaineum, BlockState… One of them is Nisebank – a very good STO project that meet the needs of investors.
The STO NiseBank Starting Price on 01/2020 is 0.005 USD. As NiseBank Finance Holdings expects the STO price from 0.1 USD to 10 USD at the end of 2020, the certain price is 0.090. Thus, STO price absolutely reach the price expectation. This is a good chance holding Nisebank’s STO.
More detaild at: https://nisebank.com/registration/289900395/R.html