A security token offering (STO) is a public offering where tokenized digital securities are sold.
Security tokens by themselves are used to authenticate the identities electronically through storing personal information. They are issued out by security token services and authenticate a person's identity. They can be used alongside a password in order to prove the identity of an owner. Security tokens are not always secure, however, and have the potential of being lost, stolen or even hacked in the worst-case scenario
Security token offerings differ from initial coin offerings in the sense that while they are made through selling digital tokens to the general public in cryptocurrency exchanges, ICO tokens are the offered cryptocurrency's actual coins, which are entirely digital and even classified as utilities.
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