The shift by token issuers away from initial coin offerings (ICOs) towards security token offerings (STOs), according to Nicolas M. Hanna, Mark Tan of K&L Gates, have resulted from retail investors realized the main inherent limitation of ICOs, that tokens only have “utility” and no supporting value.
Nicolas M. Hanna:
Investors prefer security tokens instead of utility tokens when looking to make an investment, due to the inherent value that the former possess.
The main trends for the industry, the analytics conclude, are more STOs, more regulation and more crypto exchanges to list security tokens.
Full text of the analysis by K&L Gates here.