#STO

The cryptocurrency STO is not a specific digital currency like Bitcoin or Ethereum, but rather refers to a type of investment called Security Token Offering.

What is an STO?

An STO is a way of raising funds that combines features of cryptocurrencies and traditional securities (stocks, bonds, etc.). Instead of issuing shares of a company, digital tokens are issued on a blockchain that represent a legal right over an asset (such as shares, profit participation, property ownership, etc.).

Key differences:

ICO (Initial Coin Offering): Issues tokens without legal or regulatory backing (more speculative).

STO (Security Token Offering): Tokens are regulated and represent real financial securities.

Advantages of STOs:

Greater legal security for investors.

Transparency thanks to blockchain technology.

Possibility to fractionalize assets (such as real estate) into small parts.