STO vs. ICO: the core differences you need to know about
💡 ICO is a kind of crowdfunding model where digital tokens are distributed among the early backers and token sale participants to fund the project development. The STO is a legal investment contract where digital tokens are issued to the investors but with an underlying investment asset that may be stocks, bonds or funds.
🔸 Even thought STO and ICO may seem the same at first glance, they have significant differences. ICOs focus on making funding easy for companies, while STOs focus on protecting investments and keeping everything legal. Although there are more barriers to legally launching an STO, investors prefer for their assets to be secure.
🤔 But which is better? Check the Stobox Infographic to find out the main specifications of STO and ICO.
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