Can Staked Coin Output Replace ICOs, IEOs, and STOs?

The news regarding Staked Coin Output, or SCO, took a lot of people by surprise. It is a new way of crowdfunding explored by a blockchain project.

The Merkle had explained it in this way:
https://themerkle.com/can-staked-coin-output-replace-icos-ieos-and-stos/

WHO IS IT FOR?
The audience for Staked Coin Output projects is rather diversified. Projects looking for crowdfunding outside of ICO, IEO, and STO models can reap the benefits of this approach. For investors, this new method offers some big benefits as well. As the investments occur through staked NULS rewards, there is no real ‘loss” if things go awry. That is, assuming the NULS price doesn’t crash during the staking periods.

Developers will have a lot fewer problems to deal with as well. As there are no direct financial contributions to the team, there is no reason to create a payment gateway either. Less overhead leaves more time to build an ecosystem. Moreover, the SCO model can bring legitimacy to new projects looking to make their mark on the industry as a whole. It is not a replacement for token sales, but rather a stepping stone of sorts.