Book Image

Security Tokens and Stablecoins Quick Start Guide

By : Weimin Sun, Xun (Brian) Wu, Angela Kwok
Book Image

Security Tokens and Stablecoins Quick Start Guide

By: Weimin Sun, Xun (Brian) Wu, Angela Kwok

Overview of this book

The failure of initial coin offerings (ICOs) is no accident, as most ICOs do not link to a real asset and are not regulated. Realizing the shortcomings of ICOs, the blockchain community and potential investors embraced security token offerings (STOs) and stablecoins enthusiastically. In this book, we start with an overview of the blockchain technology along with its basic concepts. We introduce the concept behind STO, and cover the basic requirements for launching a STO and the relevant regulations governing its issuance. We discuss U.S. securities laws development in launching security digital tokens using blockchain technology and show some real use cases. We also explore the process of STO launches and legal considerations. We introduce popular security tokens in the current blockchain space and talk about how to develop a security token DApp, including smart contract development for ERC1404 tokens. Later, you'll learn to build frontend side functionalities to interact with smart contracts. Finally, we discuss stablecoin technical design functionalities for issuing and operating STO tokens by interacting with Ethereum smart contracts. By the end of this book, you will have learned more about STOs and gained a detailed knowledge of building relevant applications—all with the help of practical examples.
Table of Contents (9 chapters)

Real cases

The following real cases will show how the organizations in question violated federal securities laws under the SEC's reviews and the failure to file registration for the offering of digital tokens with the SEC.

Munchee Inc. (Munchee order, December 11, 2017)

In the Munchee case, the SEC applied the analysis from the DAO report.

The facts of the case are as follows:

  • Munchee has its place of business in California. It created an iPhone application (the Munchee app) in the US for the public to post pictures, review meals, and rate restaurants. Munchee's staff maintained and upgraded the Munchee app.
  • Munchee and its agents had control of the content on multiple web pages, which included a Twitter account...