ICO vs STO(PART-II)

Process Flows In

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PROCESS OF ICO

White Paper

Website

Token

Project Owner

Blockchain Project

Investor

The owner of the project will have to create a white paper explaining how the blockchain project will work, its benefits and why it is a great business idea. Then they go ahead and make a good website and request people to send money in support of the project and in return, they offer the investors the crypto coin that shall be used in the blockchain project.

However, when the investors give the money in return for the tokens/crypto coins, they don’t get any ownership stake in the company/project. They just gamble that the currently worthless crypto coin given to them will rise in value after some time and they will end up making money out of it by may be exchanging it for another crypto or fiat money

PROCESS OF STO

White Paper

Website

Token

Project Owner

Blockchain Project

Investor

Security Token Offering is a fairly new method of raising funds of silicon valley blockchain development In STO, a blockchain project owner request for money from investors and in return give them tokens or crypto coins that entitle them for a share of the profit that the blockchain project makes. Therefore, in this case, the investor (the person that gives money for the project) receives dividends according to the amount of money he/she contributed.

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