Initial Coin Offerings (ICOs) Are Dead, STOs Are In

Don't be caught trying to be really cool only to realize that what you think is totally relevant is, well...........so last week. Take ICOs (please), or Initial Coin Offerings, that were really hot only a short time ago until the SEC found out what they were and declared war on them. The new improved version (cool and hot) are STOs, better known as Security Token Offerings. While ICO is a dirty word, STO is much more respected and even global regulators are seemingly becoming comfortable with this way of raising capital. So, personally being deep into an offshore STO myself, I encourage you to take a quick read on STOs and brush up on this important emerging capital-raising trend.

Bill Taylor/ Fintek Capital

"There’s a new “sexy” in cryptoville and it goes by the name of STO. So if you want to avoid enormous fines, a lengthy stretch in the slammer, or an outright ban, here’s what you need to know.

The rundown:

• ICOs are banned in some parts of the world and getting clamped down on in others;
• STOs are emerging as a safer alternative for companies who want to raise funds compliantly;
• Regulators are warming to STOs – but they’re not as easy as you might think.

ICO is a Dirty Word

It’s no secret that the ICO (initial coin offering) has gotten a dirty name. There’s just something a little wrong about raising millions of dollars from uninformed investors for–in some cases–little more than an idea on a whitepaper.

After seeing exit deals enough to make you weep (think Pincoin) and Ponzi schemes like Bitconnect and OneCoin, it’s hardly surprising that countries started clamping down on ICOs, most notably China and Hong Kong, with outright bans.

The US has been slower to get their act together. They continue to blunder through their clumsy dance with cryptocurrency regulation, even though “dozens” of ICOs have been alerted and will be investigated for selling securities unauthorized. Subpoenas have been issued and the market trembles..."