Since the launch of ICOBackers last year, we've worked with over 180 projects, helping them to raise over $1.7 billion. ICOs became big news last year, and by April 2018 the amount of money raised by ICOs in 2018 had already eclipsed that raised through the whole of 2017.
However, we believe trends are changing, and the ICO (Initial Coin Offering) is making way for the STO (Security Token Offering), as ICOs come under greater scrutiny from regulators and investors are looking for guarantees.
STOs differ from ICOs in that tokens are backed by something tangible, such as assets, profits or revenue of the company. By taking this route, project founders treat their tokens as securities from the get-go rather than waiting for the SEC to pounce.
We firmly believe that STOs are the future, and as a result, our focus recently has been on developing services catering to Security Token Offerings. We don't just offer legal advice and setup; we also offer a full service tailored more specifically to STOs, including a bespoke roadshow and investor communications package.
An STO means less stress for project founders - if you pre-emptively issue a security token you’re acknowledging its status; you're being deliberately transparent, and investors (and the SEC) like that.
There's more security for investors, so there's less chance of fraud and financial loss. That additional protection increases trust, and investors who may have been hesitant to get into cryptocurrency feel the risk is significantly reduced, lowering the barrier to entry.
In light of these changing dynamics, we believe TokenBackers is a more suitable name that is better aligned with our approach and services.
If you're interested in partnering with us for a successful token sale, whether it's an ICO or an STO, please feel free to reach out.