Professor Victor Michaelson, Memorandum Capital managing partner, says that “STO might merge with, or entirely replace IPO, and it might even do the same for other forms of funding in exchange for shares of the company. In addition, Dr.Michaelson argues that “with only €300K of cost and a minimum of €5M return, STO comes as a very stable and efficient fundraising tool, accessible by investors globally. It is also perfectly suitable for start-ups, strapped for cash, and for midsize companies”. STO is backed by assets i.e. bonds, equities or properties and therefore ought to perform in a much less volatile manner than ICOs and offer the potential of greater liquidity as they can be quoted on Digital exchanges which are designed to trade 24/7 and potentially available to investors globally.
