NFTs vs IBOs – What’s the difference???
NFTs or Non-Fungible-Tokens and IBOs or Initial Backers Offerings also commonly known as STOs or Security Token Offerings are all very similar and also very different in several ways…
They are all crypto tokens that are minted and reside on a blockchain, very similar to cryptocurrencies, and they represent an asset that has value, whether it is a collectible, art, music, stock, equity, or shares in a company… They all come with the benefits of blockchain including immutability, transparency, and security among other things
NFTs – Typically Unregulated
Are all unique and represent only a single entity or 1 of a collection of assets such as a copy of digital artwork or possibly a copy of a music track… So therefore the NFT represents only 1 of the assets and is not interchangeable with another NFT even from the same collection as they are each unique one of a kind. – Typically as will Art and Music, the sale and resale of an NFT are NOT Regulated, and therefore anyone can buy and sell them freely.
IBOs/STOs – Regulated
IBOs which are the Backers version of an STO are also representative of an underlying asset of value, however, they are typically securities, and represent stocks, shares, or equity in a company, and each token is not unique and is interchangeable between other tokens of the same minting, meaning, unlike NFTs where the NFT 212 of 3000 is unique and not interchangeable with say NFT 213 of 3000 whereas all STOs in a minting are fully interchangeable and it doesn’t matter which one you hold… The other most significant difference is that Security Tokens are typically used to raise funds for a business and the sale of Security Tokens is a REGULATED activity and must be done through a REGULATED platform…
That is where Backers Network Inc. comes in as we have built a jurisdictionally agnostic platform that enables you to mint an NFT of STO and to sell it through regulated dealers on the platform…