ICO/STO
An ICO or STO allows investors to support new initiatives using
cryptocurrency and principles of crowdfunding.
What is an ICO and STO?
An ICO, or “Initial Coin Offering”, uses cryptocurrency to raise capital for new ventures and projects. During an ICO’s crowdsale, participant purchase project-specific cryptocurrency tokens (or “ICO coins”) as a form of investment in the company. Just like an IPO, an ICO represents the first stage of a project going public.
STO stands for Security Token Offering. STOs, like ICOs, allow investors to support new initiatives using cryptocurrency and principles of crowdfunding. But unlike ICOs, STOs are actual securities in the form of digital tokens. These security tokens grant investors ownership rights in a company or its underlying assets, such as stocks, bonds or investment funds, one of the methods by which STOs guarantee to provide additional security to the investor.
In summary, STOs are much more regulated and safer than ICOs and at the same time much cheaper than IPOs. In other words, STOs can give the token owner a certain percentage of the company, just like on the stock exchange. STOs are filed with the Securities and Exchange Commission (SEC) and receive the approval of securities privileges such as Reg A+. SEC filing is one of the methods by which STOs guarantee to provide additional security to the investor. In summary, STOs are much more regulated and safer than ICOs and at the same time much cheaper than IPOs.
Hosting Your ICO/STO On An Exchange
A token sale that operates through a partner exchange is called an initial exchange offering, or IEO. It’s identical to an ICO in almost every way except that investors who can participate in the sale are typically limited to users on the associated exchange.
Partnering with a white label exchange provider like skalex enables you to implement IEOs at a minimum of time and cost. Take a look at our exchange platform to see how a token sale can easily be implemented.
Maximum Security
As veterans of crypto-exchange software development, we understand the importance of security. Our software’s multi-layered security system provides our exchange partners the strongest protection at all times.
Trading and Liquidity
Most ICO crowdsales are only open for 3-8 weeks. Many ICO holders want a custom exchange so their coins can be traded after the official launch. skalex has been developing cryptocurrency exchanges since 2013, and we can develop an exchange tailored to your project’s needs.
Simplified Funding
Most ICOs/STOs require participants to download an entire blockchain and set up a local wallet. This can exclude investors who are less technically savvy, seriously restricting the market for support. skalex’s system facilitates multi-currency funding from a wide variety of platforms, whether it’s an exchange trading account or hosted wallet like Coinbase or BitPay.
