Looks like security token offerings are stepping in the limelight lately. Which is kind of weird when we had a period where almost every crypto project desperately tried to avoid their token being labeled a security. What has happened that security tokens are seen more favorably now?
With the increased attention ICOs seem to be getting, regulatory requirements are getting more real every day. Considering that most the tokens that are being sold claim to be utility tokens, the chances for exit scams or failed investments increase significantly. Despite the jump in funding between 2017 and 2018, ICOs are becoming harder to participate in. Most of todays ICOs are struggling to stay within the regulatory requirements and are trying to be safe by limiting the public access to ICOs and making the ICOs available to private accredited investors only. However, that seems to be a temporary solution to the problem as the regulations get tighter. Eventually, chances are that ICOs will inevitably make room for a more regulated landscape. With adoption comes regulations and such regulations may be satisfied with Security Token Offering (STOs).