Security token offering involves issuing digital assets in compliance with the requirements of security legislation. This STO is better in all aspects than initial coin offerings. It has many advantages, provides a higher degree of protection to investors and reduces the risk for issuers. Since STO deals with a different audience, only professional investors can participate.
Benefits of security tokens:
Security Ownership – The tokens come with solid ownership rights thus the token acts as shares in a project
Cost reduction – No need for human brokers, therefore fewer costs.
Asset trading – The tokens received can also be used to purchase other crypto assets.