What are the advantages of STO? Can it become the next wave of financing?

Source: Internet
Author: User
Advantages:
I. Sto makes asset publishing cost lower and more efficient
In general, the IPO process involves restructuring and setting up a joint stock company, due diligence and counseling, financial audit, legal opinion preparation, pricing and issuance? And other processes.
In the STO process, the above work is minimized by the distributed accounting technology and the new general technology with regulatory functions, thus reducing transaction costs.
The issuance of securities passes can be used to mark many assets, commodities and financial instruments. This means that small companies have the opportunity to quickly raise funds from global investors without incurring huge costs, especially legal fees.

Ii. Sto can greatly improve the liquidity of assets and solve the problem of asset realization difficulties
Due to the lower threshold of Sto issuance, a large number of assets can be logged on and traded in the capital market, thus increasing the channels for asset realization and circulation;
From another perspective, as the barrier for investors is greatly reduced, more and more people can participate in Sto transactions. For example, if an oil painting was originally worth 1 million US dollars, only a small number of rich people could afford it. However, if the oil painting was cut into 1 million tokens, the general public could also participate, this greatly improves the mobility of oil painting assets.
This kind of infinite cut makes the purchase threshold of assets lower and lower. The lower barrier for investors also allows ordinary people to participate in investment.

Iii. Sto is more compliant and easy to monitor
The implementation of project sto usually has the following features: project code is supervised to prevent losses to investors due to severe vulnerabilities; The project conducts compliance review to check whether the industry involved in the project complies with local laws and regulations; team member background check to avoid false team background; pass the KYC Anti-Money Laundering Investigation; Issue of the pass must be endorsed by physical assets, company profits, etc.
After the above screening, project sto can filter out some poor blockchain projects, reduce the risk of losses to investors, and purify the chaotic market environment, avoid the frequent occurrence of bad coins, and make the project easier to comply with and supervise.

Iv. Sto can accelerate the global flow of assets
In the past, many investment types (including stable returns and the most profitable ones) had a very high entry barrier. The breakthrough development of Sto securities-based communication technology will break this situation.
Any user can invest in securities-type communication products that he deems valuable at any time and in any region at any scale, which increases the global liquidity of high-quality assets. In the future, high-quality assets can flow to any place of value or need like liquid in the form of evidence.
Distributed accounting can mark other non-liquid assets, such as real estate and art. Securities-based pass permits the issuer to have part of the ownership. For example, even the most expensive ××××, as long as it is marked as a securities-type pass, can be divided into a part that can be paid by anyone. The same applies to art and other forms of assets previously reserved for the super rich.
What is blockchain? In a global financial market, the issuance of securities passes is not restricted by the geographical boundaries. The sto project can raise funds globally. The global nature of the license also means that buyers and sellers can form a wider market after sto, with greater market liquidity.

V. Transaction continuity
The traditional stock market has a fixed opening time every day and is closed on holidays and weekends. However, a major event that may affect the stock price during the rest time cannot be reflected in the price because the stock is closed.
Sto's 7*24-hour continuous transaction and T + 0 settlement methods will greatly change the traditional transaction method, making the transaction more continuous, so that the stock price can reflect the market situation in real time.

With so many advantages, Will sto become the next wave of financing?
Recently, the ICO market's financing scale has been reduced to 1/10 at the beginning of the year, and the market has become extremely cold. Sto's financing method has become the way investors expect financing.
As STO is superior to traditional financial markets, I think it will become a new way of financing.
However, the upsurge brought by sto will not be as crazy as ico. The core is that STO needs to be monitored, while ICO is at a glance? There is no regulatory status; second, sto needs to have underlying real assets as the basis, while ICO can achieve financing only by selling its dream. Comparatively, sto has a higher threshold for financing than ICO.
However, sto's financing method makes coin ICO healthier and more rational, and thus lasts for a longer period of time.

What are the advantages of STO? Can it become the next wave of financing?

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