STO or Security Token Offering is a process of selling Security Tokens – digital crypto analogues of shares or another tokenized assets. STOs are quite new thing, which was born as an evolution from ICOs (Initial Coin Offerings), which become very popular in 2017-2018. A lot of companies and startups all over the world were launching ICOs and selling tokens to investors. Such activity attracted a lot of money from private investors. And meanwhile helped to test all new blockchain and crypto technologies by accelerating its adoption.
However, IСO had a number of significant drawbacks: investors did not get a share of the project profit, did not have the opportunity to influence the company’s operation, and lack of control allowed conducting fraudulent IСOs. STO is supposed to amend all these issues while retaining all the advantages of the new investment tool. All the STOs will be under tight control of regulators monitoring law enforcement compliance. All the investors will get the common rights, including but not limited to ownership of shares, periodic dividends, voting rights etc.