In the blockchain industry, there is now a lot of talk about replacing the ICO with a new, more legitimate method of attracting investment, called an STO. However, this definitely is not something completely new. During the heyday of the ICO, entering the market with security tokens was not very popular, and even now, many projects, and the investors themselves, do not always understand the difference. In this article, I will explain what makes an STO and an ICO fundamentally different.
In order to understand the difference between security and utility tokens, it is necessary to understand the essence of what they are, and most importantly, their purpose and use case.