# ICO vs STO - Key Differences For Successful Fundraising

Initial Coin Offerings (ICOs) and Security Token Offerings (STOs) are two fundraising methods used by many emerging startups to raise capital. The main difference between these two methods is the type of token offered.

**Sure, here's a table summarizing some key differences between ICOs and STOs**

**Initial Coin Offering (ICO)**

* Utility token - represents access to a product or service
* asset or business
* Unregulated
* ICO is launched by without backing any assets
* Fewer requirements, with lower costs and quicker time-to-market
* Complete anonymity
* No fundraising limits
* Limited protection

**Security Token Offering (STO)**

* Security token - represents a financial stake in an underlying
* Regulated, with clear legal frameworks
* STO are launched by backing any real time assets to create security tokens
* Compliance requirements, with higher costs and longer time-to-market
* Transparency for investors
* Fundraising is limited by security laws
* Strong legal protections

You may now have some thoughts about ICOs and STOs. After you understand the key differences between the ICO and STO methods, you may compare them to determine which is best for your company's needs.

Choose ICO if you want an unregulated and unlimited fundraising method, or want to launch with strong legal protections choose STO.

Whatever your choice in launching a crypto crowdfunding platform like ICO or STO, you should choose one reputed crypto crowdfunding platform development company for first-class **[ICO and STO Development Services](https://www.icoclone.com/blog/security-token-offering-vs-initial-coin-offering-sto-vs-ico/?utm_source=ForuMICOvsSTO&utm_medium=Hack&utm_campaign=AprTony)** for better outcomes. By reaching them you can get end-to-end services at a budget-friendly cost and provide you with top-notch crypto-related solutions.

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