Guys, what's the difference between STO and ICO? STO - security token offering. Some say that STO has other legal consequences, in contrast to ICO. Security token becomes like a stock share, unlike a token issued on ICO. Is it right? What do you know or think about it? Personally, my opinion is that STO does not differ from the ICO.
No, it's not the same thing. ICO is a type of decentralized crowdfunding system that can offer either security or utility tokens, so basically STO is a type if ICOs. Security tokens are prohibited by the US SEC (because most of them don't comply with the laws of security), these are the kind of tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders (examples: tZERO, Polymath). Utility tokens, on the other hand, aren't prohibited by the SEC, but you have to follow their regulations (that's the kind of tokens you are most likely familiar with, like Ether).
Well either way they have the same concept of using decentralized tokens, That you can earn from an investing through the companies itself, Well the only thing STO might be secure because of the need of compliance to the law of its security, But then again as you have said most of them don't really comply to that term and ending up a fraud, Well I am not quite familiar with STO, I am just elaborating what you have just explain here and would keep track if there is a need for security tokens, But I might say I still like ICO even though there are some of them ending up running with the investors money or ending up creating shit tokens instead.