In This Article:
STO’s Differentiated from ICO’s by Companies as Token Growth Expands
Security Token Offerings, STO’s, is now the term being used by many in the Blockchain sector who are steering away from the ICO, Initial Coin Offering, term after many negative stories surrounding ICO’s disappointing results and often fraudulent frameworks. The work the Security Exchange Commission has accomplished the past few months supervising and warning companies and investors participating in ICO’s in the States has had a beneficial effect. Companies largely accept and understand the ‘token’s they offer to get investor participation in their startups will need to work in many respects like shares of value issued via equity when Initial Public Offerings, IPO’s, enter the trading world via stock exchanges. ICO’s certainly still existed, but investors should pay attention to the use and differential nature of the new term STO’s.
April Proves to be a Solid Month of Gains for Bitcoin
Bitcoin held its value last week and even advanced. The digital asset is near 9300.00 U.S Dollars per coin as of this morning. Bitcoin briefly challenged high water junctures near 9,800 on Thursday but was not able to maintain short-term speculative buying. However, the cryptocurrency has enjoyed a solid climb in value the month of April and has recaptured March’s highest prices. Bitcoin does remain under its February highs and while there are two days left of trading for April, May will likely prove to be an important barometer of sentiment. After three solid months of violent downward slides, Bitcoin appears to have recaptured positive momentum short term. However, it will take another month of gains to effectively wash away fears that cascaded through the crypto landscape in the winter and allure some traders back into the game.
St. Louis Fed Issues a Paper on Cryptocurrencies
The St. Louis Federal Reserve Bank late last week issued a paper which essentially said central banks such as the Federal Reserve should not be involved in the use of anonymous cryptocurrencies. However, the St. Louis Fed indicated that it believes the use of cryptocurrencies in the private sector does have utilitarian purposes. But the in the same paper, the St. Louis Fed went on to say the use of government-backed virtual money for business and citizens may be viable, but that AML and KYC rules will need to apply.
Yaron Mazor is a senior analyst at SuperTraderTV.
SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.