As we all know, the world of ICO's is riddled with scams and mistakes, but many investors are still putting their money into ICO projects. What needs to happen for there to be a shift from ICO's to the more secure and reliable STO's?
Initial Coin Offering is basically a way for any crypto project to get money. Security Token Offering is only for those project in which there is some physical reality represented by tokens; when the tokens are backed up by some items. Even though lots of tokens are indeed like this, there are also utility tokens which have the right to be there and become successful. I tend to think that utility tokens are closer to what cryptos are supposed to be, because they can be used as money in the app after the ICO stage. Securities should definitely be regulated and probably taxed. Utility tokens shouldn't be taxed and there should be some different, milder approach to regulating them.