Best Crypto STOs to Buy in 2023
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The purpose of this beginner's guide is to discuss the best crypto STOs of 2023. Security token offerings (STOs) are somewhat similar to initial coin offerings (ICOs), not least because they enable investors to own a stake in a newly launched crypto project.
However, STOs differ from ICOs because they comply with government regulations, and thus - the investment often comes with the same safeguards as traditional securities.
8 Best Security Token Offerings Happening Now - STO Crypto List
The best crypto STOs to consider right now are listed below:
- IMPT - Overall Best Crypto STO Available Right Now
- Meta Music Token - Earn a Share of Music Royalties
- Aquarius Fund - High-Yield Investment Opportunities for Professional Investors
- Blockstream Mining - Gain Exposure to the Bitcoin Mining Industry Passively
- La Boulangerie - Invest in a New Dubai Bakery From Just $100
- ParkinGO - Established Transportation Company Looking to Expand via an STO
- Advanced Robotics - On-Site Customer Support Services via AI Technology
- Infinite Fleet - Diversify Into the MMO Strategy Gaming Space
Read on to find out more about the above STO projects.
Analyzing the Top Crypto STOs
Choosing the best STO crypto to invest in requires time and effort, not least because plenty of research and due diligence is needed.
Consider exploring what the STO investment offers in terms of use cases and upside potential, in addition to evaluating the credentials of the development team.
For further insight, below we discuss the eight best crypto STOs of 2023.
1. IMPT - Overall Best Crypto STO Available Right Now
The first project that we will discuss is IMPT - a newly launched ecosystem that offers access to green initiatives via carbon credit offsets. In its most basic form, IMPT enables token holders to offer their carbon footprint. All that is required is for the holder to convert their tokens into carbon credits and subsequently elect to burn the respective digital assets.
This will have the beneficial impact of reducing carbon emissions from the environment. Interestingly, however, the IMPT ecosystem will also enable investors to gain exposure to the ever-growing carbon credit trading industry. In its current form, this industry is highly fragmented and in most cases, inaccessible to retail clients.
However, IMPT has removed this barrier to entry through its secondary marketplace. This enables investors to list their carbon credit tokens for sale on IMPT. The credits can be purchased by speculative investors or businesses that require additional emissions for the year. Either way, if the price of carbon credits rises in the global market, the value of IMPT tokens could follow suit.
The IMPT ecosystem is built on top of the Ethereum blockchain, which makes it one of the most sustainable cryptocurrencies to buy and hold. This is because Ethereum is now a proof-of-stake crypto network, which means that transactions within the IMPT ecosystem are fast, cheap, and highly scalable.
IMPT is tipped to become the best crypto presale of 2022 and its fundraising campaign is underway right now. As of writing, nearly $5 million worth of IMPT tokens has been sold at the initial batch price of $0.018. However, once the first batch is sold - which is expected to happen in the coming days, the presale price will increase to $0.023.
This is with the view of motivating early investors to act fast on this new cryptocurrency launch. To buy IMPT tokens via the presale at preferential pricing, investors will need to have USDT or ETH in a private wallet. After connecting the wallet to the presale dashboard, investors can swap their tokens for IMPT.
Those without tokens right now can buy ETH with their credit card on the presale dashboard, before exchanging them for IMPT in real time.
2. Meta Music Token - Earn a Share of Music Royalties
The next option to explore on this list of the best crypto STOs is Meta Music Token. As the name suggests, this project is looking to bring music to the blockchain through a royalty-based structure.
Artists from all over the world can elect to market their albums via the Meta Music ecosystem, which is funded by investors of the STO. This means that investors will earn a share of any royalty fees generated on sales.
Without a third-party record label involved in the process, artists will get to keep the vast majority of any revenues generated from their music. In terms of the specifics, Meta Music Token will operate on top of the Algorand blockchain.
The public sale will seek to raise just €200,000. The private sale will look to raise €3 million. Each MMT token that is purchased during the STO will afford royalty rights for 25 years. To gain exposure to this STO, investors can use Bitcoin, USDT, or Euros.
3. Aquarius Fund - High-Yield Investment Opportunities for Professional Investors
Aquarius Fund offers one of the best security token offerings for professional investors. Before going any further, we should note that the minimum investment in this STO is €125,000. If this is feasible, Aquarius Fund offers access to high-yield investment opportunities.
Through a Luxembourg-based structure, Aquarius Fund offers investment strategies in both fiat money and stablecoins like USDT. Built on top of the Algorand blockchain, this STO can be accessed with USDT and EURT, in addition to US dollars and euros.
4. Blockstream Mining - Gain Exposure to the Bitcoin Mining Industry Passively
Powered by the Liquid network, Blockstream Mining proposes access to the lucrative Bitcoin mining industry through a regulated security token. Those investing in the project will have the potential to earn passive income from any Bitcoin mining rewards that are generated.
This Canada-based company is offering its STO to large-scale investors, considering that the minimum capital outlay is €270,000. As of writing, Blockstream Mining has already raised over €40 million in STO funding across 83 individual investors.
5. La Boulangerie - Invest in a New Dubai Bakery From Just $100
While the previous two options discussed are aimed at professional investors, La Boulangerie is one of the best crypto STOs for those on a budget. This interesting project is offering STO investors exposure to a Dubai-based bakery chain from just $100.
Each token will be priced at $1 during the STO campaign. As such, investing the minimum will result in 100 tokens. In total, the project will be looking to raise €11,500 during its public sale. A much larger €250,000 will be sought during the private sale.
6. ParkinGO - Established Transportation Company Looking to Expand via an STO
Founded in 1995, ParkinGO is an established company that offers a variety of transportation services. This includes airport parking, car rentals, and electric charging stations. ParkinGO is looking to take its growing business model to the next level through an STO campaign.
Although specific details of the total fundraising target are yet to be released, this STO will require a minimum investment of just €100. The project will operate on the Ethereum blockchain and the STO will support investments via ETH, USDT, Gemini Dollar, and euros.
7. Advanced Robotics - On-Site Customer Support Services via AI Technology
The next project to consider on this list of the best crypto STOs is Advanced Robotics. This project is looking to build a network of customer support terminals that operates on artificial intelligence technology.
This is with the view of offering a more streamlined and efficient customer experience through automation. Advanced Robotics - which was founded in 2019, is offering access to its development and sales journey through a regulated STO campaign.
A minimum investment of just €100 is required and the STO accepts Bitcoin, USDT, and euros. The STO thus far has raised just over €82,000. The ongoing private sale is looking to reach a hard cap target of €200,000.
8. Infinite Fleet - Diversify Into the MMO Strategy Gaming Space
The final option that we will discuss today from this list of the best crypto STOs is Infinite Fleet. This project is building a highly diverse MMO strategy video game that will be backed by the EXO token.
By investing in this STO, investors will be entitled to a 20% profit share on income generated from the game. Interestingly, Infinite Fleet already has some notable backers, inclusive of Max Keise and Charlie Lee.
This STO has already raised over $4.7 million in funding and the minimum investment is just $100. Those looking to invest in the Infinite Fleet STO can do so with Bitcoin, USDT, and euros.
What is an STO?
Security token offerings - or STOs, enable both startups and established companies to raise capital for their operations. Built in conjunction with the blockchain protocol, STOs create their own native token, which is offered to investors of the project.
In this sense, STOs are very similar to conventional crypto ICOs. However, the key difference is that STOs operate in a fully regulated environment, which ICOs do not. In fact, depending on the jurisdiction, some STOs are regulated in the same way as traditional securities.
- The idea here is to enable investors to gain exposure to the blockchain asset scene in a safe and regulated space.
- This means that by investing in an STO, investors will secure a stake in the respective firm.
- In this regard, STOs are somewhat similar to initial public offerings (IPOs) held by companies that are about to be listed on a stock exchange for the first time.
- This is because, in theory, those investing in an STO will have the same rights that shareholders have when buying stocks.
With that said, many would argue that STOs are a lot more beneficial for both companies and investors when compared to IPOs. The reason for this is that security tokens operate on the blockchain, so each and every aspect of the company can be viewed in a transparent way.
Furthermore, when it comes to trading security tokens, the process can be completed at the click of a button on a wallet-to-wallet basis. Just like standard cryptocurrencies such as Bitcoin and Ethereum, security tokens can be fractionized into small units.
How do Security Token Offerings Work?
Although security token offerings provide investors with many benefits over traditional IPOs, this industry continues to grow at a slow pace.
As such, many investors are unaware of how the STO process works.
In the sections below, we help clear the mist by offering a brief overview of the STO investment process.
Regulatory Approval
Before offering access to an STO fundraising campaign, the respective company must receive regulatory approval from the respective financial body that it plans to operate.
Those looking to raise funds from US investors, for example, will require SEC approval. This is easier said than done, as the STO application process is both stringent and cumbersome.
In fact, this is the reason why so few STOs are available to US clients, as the SEC is often reluctant to approve crypto-related funding campaigns.
Funding Requirements
If and when regulatory approval is granted, the company will then begin to proceed with its STO.
In a similar nature to crypto presales, STOs will have a fundraising target in mind. The STO might offer one fundraising campaign until the hard cap is reached, or spread this out across multiple rounds.
Tokenization
The STO will sell the project's native digital token to retail and/or accredited investors. In many cases, as per its regulatory approval, the STO will have the legal remit to accept both crypto assets and fiat money when raising funds.
- The project behind the STO will determine the value of its token during the sale.
- For instance, let's suppose that the project is looking to raise $2 million and it proposes to offer 4 million tokens during the STO.
- This means that each token is worth $0.50.
There is typically a minimum investment requirement when engaging with an STO. As we discussed earlier when reviewing the best crypto STOs for 2023, this can be anything from $100 up to $100,000 and more.
Asset Exchange
Once the investor has paid for their STO investment - either through crypto or fiat money, they will typically receive their security tokens without delay.
Some projects do, however, only release the tokens after the conclusion of the STO.
Either way, just like conventional cryptocurrencies, security tokens are digital assets that are stored on the blockchain.
This means that investors will need to store their security tokens in a suitable wallet.
How to Find Upcoming STOs
Security tokens operate in a completely different space from conventional cryptocurrencies. This is because security tokens do not trade on crypto exchanges. Instead, buyers and sellers trade on a specialist security token exchange.
With this in mind, finding upcoming STOs is not an easy task. Perhaps the most efficient method is to use a third-party website that offers up-to-date information on new and existing STO campaigns.
Another option is to go straight to the source - security token exchanges. These platforms not only host the STO fundraising campaign, but the subsequent token listing. This means that after the project has raised funds, it will likely list its security token on the same exchange.
Should You Invest in Crypto STOs?
Security tokens, just like any other investment class, come with both benefits and risks.
In this section, we explore whether or not STOs are considered an attractive investment proposition.
Regulated Environment
First and foremost, the main benefit of investing in an STO over a conventional crypto ICO is that security tokens allegedly operate in a heavily regulated space.
We say 'allegedly', as regulation will ultimately depend on the respective jurisdiction.
For example, while STOs approved by the SEC are likely to have gone through an in-depth approval process, whether this is the case in other regions remains to be seen.
Nonetheless, the overarching concept of STOs is that they offer the same safeguards as an investor would expect from a traditional stock holding.
In other words, the company behind the STO will need to comply with relevant regulations in the countries it operates and make its financial filings available to the public.
Early-Bird Pricing
In a similar nature to buying new cryptocurrencies via an ICO, STOs offer early investors the opportunity to buy their tokens at a discount. This is much the same as investing in IPO which, in many cases, will offer an immediate upside as soon as the company's exchange listing goes live.
Crucially, this means that investors can secure a much better deal by investing in the respective STO, as opposed to waiting for the security token to be listed on an exchange.
Stake in a Company
One of the most appealing aspects of STOs is that they enable investors to own a stake in the respective company. Once again, this is much the same as buying shares in a public stock.
The investor's stake in the company will be determined by the number of tokens they hold.
For instance, let's suppose that in total, the company behind the STO initiates a total supply of 10 million security tokens. If an investor holds 100,000 tokens, they essentially own a 1% stake in the company.
Tradable Market
After the STO fundraising campaign, the project will likely list its token on an exchange for trading. In this regard, the process thereon is somewhat similar to a cryptocurrency being listed on an exchange like Binance or OKX.
This is because the exchange will enable investors to buy and sell the respective security token and thus - its market value will be determined by demand and supply.
This potentially offers the opportunity for STO investors to see a financial return on their capital, should the value of the security token rise.
Liquidity
Make no mistake about it - in comparison to the traditional cryptocurrency trading scene, STOs and security tokens in general are worth just a fraction of the overall market.
The key challenge is that very few STO applications are approved. This means that interest in STOs is still minute when compared to conventional cryptocurrencies.
This is actually a major drawback to consider before investing in an STO, especially when it comes to liquidity.
- For instance, Security Token Market - which is one of the most popular security token exchanges in this space, notes that the total market capitalization of all listed security tokens is just $15.5 billion.
- An overwhelming majority of this market capitalization is held by just one security token - EGX, at $14.7 billion.
- However, Security Token Markets notes that EGX has attracted just $1,693 in trading volume over the prior 24 hours of writing.
- As a result, there is a major concern with liquidity when investing in STOs and security tokens.
This is why the better option could be to invest in upcoming ICOs rather than STOs. After all, while the broader crypto markets are embroiled in a bearish cycle, there are generally no issues with liquidity.
Conclusion
The concept of STOs and security tokens, in general, is notable - investors can gain exposure to blockchain assets in a fully regulated environment.
However, this space is worth just a tiny fraction of the overall cryptocurrency market - which has resulted in a major liquidity issue.
As such, perhaps the better option is to consider a solid crypto presale like IMPT - which is building a carbon credit offset program alongside NFTs on the Ethereum blockchain.
The IMPT presale has already raised $5 million and after the first batch of tokens is sold, the price will increase by 27%.
As such, those with an interest in the IMPT presale will need to act quickly. Investors should, of course, do their own due diligence and be sure to understand the risks.
FAQs
What is a crypto STO?
A crypto STO refers to a security token offering. This means that a project will offer a stake in its company in exchange for security tokens. Security tokens are somewhat similar to cryptocurrencies like Bitcoin and BNB, insofar as they are digital assets stored and transferred via the blockchain. However, security tokens typically operate in a regulated environment.
How much are STOs?
Each security token offering will have its own pricing structure and fundraising targets. In some cases, STOs are only suitable for large-scale investors, with minimum investment requirements starting at $100,000 or more. In other cases, some STOs will have a small minimum capital outlay of just $100.
How do I get STO crypto?
In order to invest in an STO, the first step is to register with the exchange that is hosting the listing. After that, the investor will need to ensure that they have a funded account to pay for the STO investment. This is often a choice between crypto and fiat money. After completing the investment, the investor will receive the respective security token.
What are examples of security tokens?
One of the largest security tokens in the market right now is the Enegra Group Token (EGX). This project has opened up the commodity trading industry to miners based in emerging markets and 100% of the equity in the company has been tokenized. This means that by holding an EGX token, investors own a stake in Enegra Group Token. This is much the same as buying shares in a publicly traded stock.
What are the top security tokens?
One of the most recognized security tokens in this space is INX. INX - which was the first tokenized security project to get the green light from the SEC, offers an all-in-one platform for both STOs and cryptocurrency trading.
How many types of security tokens are there?
Generally, there are three different types of security tokens that can be purchased by investors - equity, debt, and asset-backed. Equity tokens operate in much the same way as an IPO, insofar as holders will own a share in the respective company. Debt tokens refer to a loan made by the investor to the company in question. The security token will present ownership of the debt via the blockchain. The third type is an asset-backed security token. As the name suggests, this type of security is legally backed by a physical asset - such as fine art or real estate.
