Difference between STO and ICO

  • Both STO and ICO are fundraising methods where capital funds are raised in return for a digital asset and investor is issued with a coin/token. But when you dive deeper, there are actually a few important differences that will come to light. Some of the important ones are,

    • STO’s abide by certain laws and regulations, which doesn’t apply for ICOs
    • With STO, Investors can claim a share from profits but with ICO, the investor can only claim the product and services after launch
    • With STO, the KYC integration should be verified, with ICO, there’s no such verification required.
    • STO’s come with enhanced security while compared to ICO
    • STO’s are restricted in certain countries, unlike ICO.

    Though there are some major differences between STO and ICO, both have their own set of benefits as well. If you want to develop your own STO/ICO, I would suggest collaborating with Blockchain App Factory, as they have a team of dedicated and experienced developers who will provide reliable and quick services at the most affordable prices in the market.