Attracting new investors into the cryptocurrency market is not an easy task. Initially, we had Initial Coin Offering (ICOs) as the main method of investing in blockchain projects and this proved to be a short-lived success in bringing people into the community. As time went on, people discovered that a large number of the ICOs being marketed online were actually scams and a large number of investors lost their money. The distrust of ICOs still exists to this day.
To plug the perceived gap in regulations and to keep the money of investors safe, we then had Security Token Offerings (STOs). Initially, these were seen to be the savior of the cryptocurrency market, by encouraging more cautious investors into the cryptocurrency market.
Despite this, they haven’t quite achieved that, with many believing that conforming to the securities regulators in various countries is both expensive and defeats the purpose of investing in cryptocurrency projects in the first place. Indeed, jumping through all of the red tape and hiring lawyers to help navigate the regulatory minefield is not a cheap task. Despite this, there are still a number of businesses that are succeeding in the STO space.