The security token is a new method of token offering that has emerged as a correction of ICO’s major misgivings that is: stronger regulation and the separation of speculation from the utility. In simpler terms, security tokens are used to share profits, pay interest/dividend or invest in other tokens to generate profits for the token holders.
The security tokens offerings are more stable than ICO’s and can be traded easily on your chosen exchange. They are less cumbersome and more secure than Initial Coin Offerings.
The STO’s have also helped to provide a better reputation in the cryptocurrency market, this is because the ICO’s have a reputation of being an environment for scam/illicit activities. Due to this regulated nature of STO’s, the token offerings are seen to be more credible to the investors and there is fewer chances of investors for doing illegal activities.
Unlike ICO’s, STO’s give ownership to the investors over real assets. The biggest benefit of STO over ICO is that the STO’s are likely to get attracted by many investors than ICO. Thus the STO’s have led to many predictions that result in the outbreaking of traditional initial coin offerings method.
Read more about STO development here-->https://www.cryptoexchangescript.com/security-token-development-company