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How Does a Security Token Offering (STO) Differ from an ICO?

An STO is a fundraising method that explicitly offers tokens classified as securities, meaning they are fully compliant with regulatory bodies. Unlike many ICOs which sought to bypass securities laws, an STO involves legal documentation and adherence to regulations, often limiting investment to accredited investors.

The tokens represent ownership in an asset, like equity or real estate, offering more investor protection.

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