STO
By Cryptomcmillan1 | Updated on May 24, 2020
Security Token Offering (STO) refers to a public offering for tokenized digital securities, or in short security tokens traded in cryptocurrency exchanges. STOs are classified as securities by the juridstiction which they are issued in, and as such as more regulated compared to its counterpart, Initial Coin Offering (ICO) which were subject to various fraudulent schemes.
Related Terms
Leverage
It is an investment strategy to gain potential return of the investment by borrowing the money
IEO
Initial Exchange Offering (IEO) is a spin-off of Initial Coin Offering (ICO), where the sale of tokens are conducted on an exchange rather than by the coin team themselves.
Merkle Tree
A Merkle tree is also known as a hash tree in cryptography. It is a tree where every lead node is labelled with cryptographic hash of a data block, and every non-leaf node is labelled with the hash of the labels of its child nodes. It is used to verify of data stored within it and transferable in and between computers.
Side Chain
A separate blockchain ledger that runs parallel with the primary blockchain.
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