STOs: The Dangers, Downsides, and Hidden Costs
▻https://hackernoon.com/stos-the-dangers-downsides-and-hidden-costs-3d6573ab0457?source=rss----3
Security token offerings (STOs) have been all the rage lately, but despite their popularity, they are not the salvation to tokenized funding offerings. Certainly, STOs have a place in the token offering world, but the rosy outlook toward STOs in the industry has made both investors and companies desperate for funding overlook their potential shortcomings and inherent risks.Paying out DividendsOne of the highly touted benefits of STOs is that dividend payments are hard-coded into the token itself, guaranteeing fair payments for the token-holder. While this may be true in comparison to utility tokens where no rights are guaranteed the token holder, it leaves some added complexities.Dividends based on earnings are highly subjective. My main career background is in accounting and I can (...)
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