What is an STO?

If you’re not sure what an STO is, here’s our guide on the basics.

 

What is an STO?

An STO refers to Security Token Offering, which is very similar to an ICO (initial coin offering). Upon investment, a token is given to the investor, which represents the investment they’ve put into a new form of cryptocurrency.

Ready To Spend Your Bitcoin, Ethereum, Ripple, Litecoin, and Other Cryptocurrencies?
Within minutes you can register for a Unbanked account, add funds, pass KYC, get a virtual card and make purchases anywhere major credit cards are accepted. Register at no cost to you.
  Register Now

However, this token is used to represent an investment into something like stocks or underlying assets or bonds, rather than a new type of currency with barely any value. This is how an STO helps to bridge the middle ground between an ICO and an IEO (initial exchange offering).

 

Are STOs Regulated? 

Depending on the country a person is working in, this may vary. Many countries have long and detailed plans regarding the handling and verification of crypto assets, like the United States and the United Kingdom.

However, many countries, like China and India, have banned their use.

 

A Big Benefit of STOs

STOs carry a reputation of having a lower risk than ICOs. Security tokens have more laws around them, and there are physical assets involved, ensuring that it has real value.

 

A Big Drawback of STOs

There’s a lot of regulation burden concerning the use of STOs. They cut out the middleman in the investment process, meaning no bank is involved. This only increases the workload of an STO platform, and the amount of administration can slow down the process.

Buy Bitcoin With Your Unbanked Bank Account
Buy Bitcoin and other cryptocurrencies with your crypto friendly bank account from Unbanked. Purchase Bitcoin and other crypto instantly and settle to your crypto wallet.
  Register Now

Want to take advantage of your STO? Open up an online bank account, deposit your crypto, and start using your BlockCard as soon as your application is complete.

The Latest

How To Sell Your Cryptocurrencies?

Once you have bought cryptocurrencies, you’d probably start thinking about how to cash them out at profits. Since cryptocurrencies cannot be directly used in stores or to buy stuff, you have to sell your cryptocurrencies if you are looking for short-term gains. There are several ways to do that, including cryptocurrency exchanges, online forums, Bitcoin… Read Article

Can NFTs Be The Next Big Thing After Bitcoin?

Non-fungible tokens (NFTs) are unique tokenized versions of digital assets that can come in the form of videos, digital art pieces, audios, images, etc. NFTs provide special ownership of that digital item to the owner. NFTs are unique because they are stored in a blockchain ledger that cannot be copied, lost, or fraudulently duplicated, which… Read Article

Why You Should Invest in Crypto Wallets You Trust

A crypto wallet is just like any traditional wallet, but instead of cash and cards, it holds your cryptocurrencies like bitcoin. A crypto wallet authorizes your crypto transactions via digital signatures. It stores private and public keys. A public key is an address used to send cryptocurrencies to crypto wallets, while the private key is… Read Article

Why You May Prefer Stablecoins Over Regular Cryptocurrency

Cryptocurrencies are highly volatile, and this can be seen by the fluctuations in Bitcoin prices over the last couple of months. Its prices abruptly skyrocketed in April up to $65,000 and then plummeted to $30,000 in May. Such fluctuations might be beneficial to investors who plan to hold cryptocurrencies for a long time but not… Read Article


6.38%

Crypto Rewards
on Spend

You also have access to:

BANK ACCOUNTS
DEBIT CARDS
BUYING, SELLING, & SPENDING CRYPTO


ARE YOU READY TO GET UNBANKED?


Nah, I enjoy high fees...

x
Bankers NFT Drop coming soon  — January 31st at 12pm ET!?days ?hours 00mins 00secs
This is default text for notification bar