{"id":1269,"date":"2019-01-10T19:45:39","date_gmt":"2019-01-10T14:15:39","guid":{"rendered":"https:\/\/blockchainappfactory.com\/blog\/?p=1269"},"modified":"2019-01-10T19:45:39","modified_gmt":"2019-01-10T14:15:39","slug":"ico-vs-sto-marketing-whats-the-difference","status":"publish","type":"post","link":"https:\/\/www.blockchainappfactory.com\/blog\/ico-vs-sto-marketing-whats-the-difference\/","title":{"rendered":"ICO vs STO Marketing: What\u2019s the Difference?"},"content":{"rendered":"<p>When planning to invest in Crypto-tokens, you\u2019ll often come across terms such as ICO and STO marketing. Although confusing at first, don\u2019t let it deter you from exploring this flourishing territory. To begin with, ICO stands for Initial Coin Offering, and STO refers to Security Token Offering. Both of these crypto-assets address different issues and come with their own sets of pros and cons. Read on to get a better understanding of ICO and STO marketing.<\/p>\n<p><strong><span style=\"font-size: 20px; color: #333333;\">Initial Coin Offering (ICO)\u00a0<\/span><\/strong><\/p>\n<p>ICO marketing is usually employed when a business is raising capital to fund its project. There is virtually no red tape involved thus allowing companies to collect investments faster. This is also the main factor that makes ICOs highly volatile. Often ICOs are synonymous with quick-rich scams as there are many instances where investors have lost their money to fraud companies. However, ICOs have not lost their legitimacy and many startups choose to follow this route in order to attract investment.<a href=\"https:\/\/www.blockchainappfactory.com\/ico-marketing-services\"> <span style=\"color: #ff6600;\"><strong>ICO marketing<\/strong> <\/span><\/a>is also very easy as it does not follow complex procedures and conventional social media platforms can be used. Bounty programs are also an effective way to generate community interest in an ICO.<\/p>\n<p><span style=\"color: #000000;\"><strong>Advantages\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Effortless medium to raise funds for projects<\/span><\/li>\n<li><span style=\"font-weight: 400;\">No middleman involved thus eliminating any unwanted costs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Simple to promote and market<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Disadvantages<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">This is a highly unregulated sector and investors can incur huge losses<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Association with scams and losses has resulted in ICOs losing credibility<\/span><\/li>\n<li><span style=\"font-weight: 400;\">No mechanism to track and penalize fraud companies<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"font-size: 20px; color: #333333;\">Security Token Offering (STO)<\/span><\/strong><\/p>\n<p>Addressing the vulnerabilities present in ICOs, Security Token Offering provides a risk-free network to investors. Just like ICOs, Security Token Offering is used for raising capital, but it is restricted to a closed group of investors who comply with a set of prerequisites. These prerequisites are laid down and regulated by the US Securities and Exchange Commission. Unlike ICOs, it is significantly difficult to market STOs. This is largely due to the strict regulations that companies have to adhere to as well as being limited to a smaller pool of verified investors. Additionally, it becomes strenuous to trade STOs since popular exchanges are not very supportive as it requires a lot of documentation. On the bright side, STOs are quickly becoming the go-to medium for investors given its reliability and experts suggest that by 2020, the market cap for STOs will touch $10 trillion.<\/p>\n<p><span style=\"color: #000000;\"><strong>Advantages<\/strong><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The risk level is very low and guarantees the investor\u2019s investment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">STOs are registered with the SEC and are at par with conventional stock market shares<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Pundits predict that the market cap for STOs will surpass $10 trillion by 2020<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\"><strong>Disadvantages<\/strong><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.blockchainappfactory.com\/sto-marketing-services\"><span style=\"color: #ff6600;\"><strong>STO marketing<\/strong> <\/span><\/a>is relatively expensive since the investor pool is limited<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Costs have increased since compliance with legal and financial regulations is required<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Listing STOs on exchanges is quite tricky since this medium is not as popular as ICOs.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>When planning to invest in Crypto-tokens, you\u2019ll often come across terms such as ICO and STO marketing. Although confusing at first, don\u2019t let it deter you from exploring this flourishing territory. To begin with, ICO stands for Initial Coin Offering, and STO refers to Security Token Offering. Both of these crypto-assets address different issues and&hellip;&nbsp;<a href=\"https:\/\/www.blockchainappfactory.com\/blog\/ico-vs-sto-marketing-whats-the-difference\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">ICO vs STO Marketing: What\u2019s the Difference?<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":1270,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[30,145],"tags":[14,31,144,176],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Difference Between ICO &amp; STO Marketing | Blockchain App Factory<\/title>\n<meta name=\"description\" content=\"In the crypto-market, understand the difference between the two major players - ICO and STO. 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