Understanding the meaning of an STO
It generates income for the investor in the form of dividends, profit sharing, and interest. The Howey test is conducted by the Securities and Exchange Commission (SEC) of the USA to ascertain the viability of an STO. The value behind the tokens depends on the external real-world assets that can be traded. The SEC’s rules regarding issuance, trading, and compliance will have to be adhered to strictly.
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