
1 minute read
Dierence Between
from ICO vs STO
by BlockchainX
@blockchainxtech Blockchain Community
ENTITLEMENT
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ICOs do not entitle investors to any form of dividends at all
STOs entitle the investors to a share of the total profit that the project makes.
REGULATIONS
ICOs are known to work in an un regulated environment in most countries and they are prone of frauds
STOs are well controlled and regulated
TYPE OF INVESTORS
ICOs are known to be funded by pure crowds who just feel convinced to support the project with an eye on owning as much crypto coin as possible
STOs are well controlled and regulated
CONTRIBUTION
ICOs contribution are normally small with most of them averaging at less than $1000 per person,
STOs you can have a single investor contributing over $50,000
WHICH IS BEST AMONG THE TWO?
It will depends on your motive!
If you want a share of blockchain project, then you should invest in an STO. But if you are just after investing in cryptocoins, then ICO is the best option.
However, STOs seem to be more profitable compared to the ICO since you get the crypto coins or tokens of the project and at the same time you are entitle to dividends depending on the amount of tokens you own while depending on your contribution. But for more dividends, you will have to invest more in STOs.
THANK YOU FOR READING
@blockchainxtech Blockchain Community