The Security Token Offering

The security token offering, or STO as it is better known, has become more commonplace in today's crypto fundraising market.

Generally, in issuing an STO and security tokens, you are bowing to venture capitalists and institutional investors.

In pursuit of this "VC" money and in an attempt to gain back control of their lost position, VCs have convinced many companies to issue security tokens rather than a strict ICO utility token; thereby, ensuring that the VC firm gets its usual ability to obtain some kind of equity passed through from the security token.

Keeping up with each countries' individual exchange laws would be cumbersome, costly and take more effort than the reward would be-so a "Universal" security token exchange could be impossible.

Where will you register your STO? To become an STO you need to actually have registered the offering somewhere, meaning you are subject to a country's laws, KYC principals and government inspection.

As for those companies that believe they can become a security in one location and not a security in another is madness.

Finally, the number of people who believe that filing paperwork in the U.S. does not make them a security is again, mind-blowing.

When you do an initial public offering or an STO, you are removing the community control and the naturalized economics of the token itself.

Organically, they grow very well and receive support from their user base, and are often only tradable with their own token, which is issued during a typical ICO. Just because something has been evolved into a fractionalized ownership model through tokenized assets, does not make it a security token by default.

Since 2016 Gresham International assisted entrepreneurs, companies, governments, and groups launch their currency or token offering to market.