What Is A Security Token Offering (STO) ?
A typical ICO use utility tokens, which basically promise the future use of a product or service. Most of the time, such ICOs just receive Investor funds, without offering anything in return. Security tokens are backed by real-time, tangible assets; so, investors can be assured of returns, as the value of security tokens are directly linked to the appreciation of the assets attached to them.
The value of a security token increases or decreases on the basis of the performance value of the asset. For example, if a security token represents a share of a publicly traded company and the publicly listed share increases in value, so will the security token and vice-versa.
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