Challenges with the ICO & IPO Market

  • Strict Regulation for IPOs: IPOs are subject to much stricter regulations than STOs. As a result, IPOs require a much more extensive disclosure process, and they are also subject to more scrutiny by regulators.

  • IPOs are Expensive: The cost of an IPO can be very high. This is because companies need to hire investment banks, lawyers, and other professionals to help them through the process. STOs, on the other hand, are typically much less expensive. This is because they do not require the same level of regulatory compliance as IPOs.

  • ICOs are Predisposed to Scams: ICOs have been plagued by scams and rugpulls. This is because there is no regulatory framework in place to protect investors. As a result, investors who buy into ICOs are often left with nothing if the project turns out to be a scam.

  • Lack of Regulatory Framework: As mentioned above, there is no regulatory framework in place for ICOs. This means that there are no clear rules about what information companies need to disclose, or how they need to protect investors. As a result, ICOs are often seen as being risky investments.

  • Transparency: STOs are typically more transparent than ICOs. This is because STOs are subject to more regulatory scrutiny, which requires companies to disclose more information about their projects.

PreviousRaising Capital & Types of Fundraising AlternativesNextIXS Launchpad Solution

Last updated