What are the advantages of an STO?
We can look at it from both an ICO perspective as well as an IPO perspective.
Compared to an ICO, STOs are seen as lower risk because the securities laws that security tokens have to comply with often enforce transparency and accountability. A security token will also be backed by a real-world asset, which makes it a lot easier to assess whether or not the token is priced fairly in relation to the underlying asset. With pure utility tokens, it can be difficult to assess the true value of a token and whether or not it is priced fairly.
Compared to traditional IPOs, an STO is cheaper because of the removal of middlemen, such as banks and brokerages. Smart contracts reduce the reliance on lawyers, while the blockchain reduces the need for paperwork. This makes the whole process not only cheaper, but also faster.
Fractional ownership and the ability to trade 24/7 bring additional liquidity to the market, especially with traditionally illiquid assets, such as scarce paintings, property and collectibles.
In an email to business and financial news network CNBC, Dan Doney, co-founder and chief executive of fintech firm Securrency, said:
“The ability to trade around the clock, with a range of currencies, offers investors both convenience and liquidity.”
These same characteristics open up the market to smaller investors who wouldn’t normally have access to the more avant-garde types of assets.
Finally, it’s good for blockchain adoption in the long-run. STOs are legally compliant, which means they are perceived to be less of a risk and will encourage institutional investors to come on board.
The more institutional investors start to invest, the less volatile the market is likely to become and the further blockchain adoption will grow.
[STO] Divident BY Holding
LCG is a stock token of Light Coin Group. LCG is valued as a share of Light Coin Group after STO (Security Token Offering).
The revenue of Light Coin Group will be distributed to LCG holders in proportion. Specific method: 80% revenue of the exchange platform * LCG amount held by user / current circulating volume of LCG.
Investors holding LCG token of the company will receive quarterly dividends according to the company’s regulations
Guide to KYC and receive Airdrop LCG Here: https://lightcoinex.com/guide.html