STO means security token offering.
This is somewhat similar concept of IEO or ICOs project, where we invests our money before launch of the coin.
But here STO is totally different thing.
STOs project are much safer than IEOs and ICOs project.
How STOs project works?
STOs project are process to tokenize the physical properties or real projects which are really exists.
Suppose we have a website platform, now we will make it into tokenized form.
Actually we will make a token name for our website platform and that token will show the value of the real website platform.
Indirectly we can say that we can break a property into pieces in the form of token.
The best example of STO project is BNB coin I.e Binance coin.
Binance coin is a result of STO project.
STOs project are very popular in share market where many companies launches their company share in tokenized form.
And that are going with the documentation process.
But here in cryptocurrency we don’t need any type of documentation process. We can directly invest or buy the coin token .
Difference between STO and ICO
STO have a background history record while ICOs project don’t have such kind of record.
ICOs are totally new for us.
We can say ICO and IEO both don’t have background record of history but STOs project have.
How to identify a trusted STOs projects?
Never do investment in STOs project blindly, always do research.
And also check whether the company or platform for which STO project is launching, have any type of history or not.
Otherwise may be a good looking STO project may be scam.
If you don’t know about ICOs and IEOs project, then visit at another articles about ICOs and IEOs project , where we explained about it in very deep and detailed information.
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