In our first meetup for 2019, we take a look at the latest ‘buzzword’ in the blockchain space – Security Token Offerings or STOs.
Many startups raised money through Initial Coin Offerings (ICOs) in 2017 and early 2018, but a combination of changing markets, regulator pressure and broken promises have mostly killed investor appetite. In Australia, ASIC has made it clear that they consider most ICOs to be illegal managed investment schemes which may come with consequences. We’ve also seen many projects unable to deliver on their lofty promises and make their token genuinely useful on their platform.
Companies are now looking for new ways to fund blockchain projects in a compliant manner. STOs have been put forward as one possible model which can give investors some ‘real world’ value. But what are they and how do they work?