STO – Security Token Offerings –its essence is similar to ICO but it also imitates to regulatory requirements. STOs surfaced as a reaction to the lack of oversight when it came to ICOs, to bring regulation to blockchain-based crowdfunding and offer more guarantees in the space of raising funds using tokens issued on a blockchain.
50 BILLION $ IN 2018
Crowdfunding is a process of raising capital via the mutual effort of friends, family, customers, and individual investors. This method taps into the shared efforts of a large pool of individuals—primarily online through social media and crowdfunding platforms—and leverages their networks for greater reach and exposure.
(in product tokens)
96,1% of ICOs in 2018 were too risky or scams
45% of funds were spent to pay for the raise or personal expenses