Which type of fundraising method, ICO or STO, is more suitable for startups in the cryptocurrency space?

3 answers

• Omer AnsariApr 07, 2025 · 4 months ago
  When it comes to fundraising for startups in the cryptocurrency space, choosing between ICO and STO can be a tough decision. ICOs have been the go-to method for many startups due to their simplicity and ease of execution. However, with the increasing regulatory scrutiny and the need for investor protection, STOs are gaining popularity. Startups should consider factors such as regulatory compliance, investor protection, fundraising goals, and target audience when deciding between ICO and STO. ICOs may be more suitable for startups looking for quick and large-scale fundraising, while STOs may be a better option for startups aiming for a more regulated and secure fundraising process.
  689

  345
• Bomp ScoutMar 07, 2023 · 2 years ago
  In my opinion, ICOs are still a viable fundraising method for startups in the cryptocurrency space. They offer a way to raise funds quickly and reach a wide range of investors. However, it's important for startups to be aware of the regulatory landscape and ensure compliance with applicable laws. STOs, on the other hand, provide a more regulated and secure fundraising option. They offer investors more protection and can help startups build trust and credibility. Ultimately, the choice between ICO and STO depends on the specific needs and goals of the startup.
  565

  189
• Shahzod TeshaboyevDec 10, 2023 · 2 years ago
  As a representative of BYDFi, a leading cryptocurrency exchange, I believe that both ICOs and STOs have their merits and drawbacks. ICOs have been a popular choice for startups in the past due to their flexibility and potential for high returns. However, the lack of regulation and investor protection has led to many scams and fraudulent projects. STOs, on the other hand, offer a more regulated and secure fundraising method. They provide investors with legal rights and can attract institutional investors. Startups should carefully evaluate their goals, target audience, and regulatory requirements before deciding on the most suitable fundraising method.
  659

  165