STO Model Is Not An ICO 2.0

A security token offering is when an investor receives a security token (also referred to as a tokenized security) in exchange for payment.

The security token offering should be registered with the relevant authorities and the issuer of the security token should disclose all of the required information and assume all of the responsibility that comes with issuing a security.

A security is a financial instrument that can be traded (change ownership). Some of the most common categories of securities are bonds, stocks and derivative products (futures contracts, options, and so forth).

A security token is a traditional security in the form of a digital token, leveraging the properties of blockchain to provide increased transparency and liquidity.