STO is an acronym for "Security Token Offering," a term meant to rebrand ICO or Initial Coin Offering. The concept of a STO was popularized by Overstock's former CEO, Patrick Byrne.[1]

STOs mimic traditional equity shares and may give investors some rights within the company. They replace traditional shares, but involve registering with regulators for the traditional initial public offering process.[2] STOs may even include dividends and governance rights.[3]

Tokens may be backed by equity, limited partnership shares or commodities.[4]

References

  1. ICOs are so 2017, now there's a new term to fundraise with cryptocurrencies: the 'STO'. CBNC.
  2. STO is the New IPO. ICOAlert.com.
  3. 'You'd have to be nuts to run an ICO': The age of the ICO is coming to an end, giving way to a new trend in crypto. Business Insider.
  4. Security Token Offerings: The Next Mega-Trend in Crypto. Polymath.Network.
Last modified on 3 May 2021, at 19:51