In the not-so-distant past, ICOs enjoyed a massive surge in popularity. Yet, because of a number of documented ICO scams and security breaches, the bullish ICO market has petered-out a bit. That said, Security Token Offerings (STOs) have emerged as a new method of raising money for blockchain projects. STOs have the potential to meet the growing demand for both compliance and accountability. In this article, 9 industry experts provide valuable insight as to whether STOs are the new ICO.
Growth Of The STO Has Been Slowed By A Lack Of Liquidity
“The STO is the new ICO, but the growth of the STO has been slowed immensely by a lack of liquidity and secondary market options. The biggest advantage of an STO over a traditional private placement of capital was the ability to generate liquidity. Yet as of now there is not ample liquidity in the marketplace, which is slowing the growth of the STO.”
Kyle Asman, Partner and Co-founder, BX3 Capital