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)

A traditional fund raising roadmap for startups

Raising funds is the most critical task for any entrepreneur starting a new business venture. Many startups fail due to insufficient money to support future activities. Prior to the capitalism age, funding for a major adventure relied on support from royal or rich families. This approach could only support a small number of projects. It was hard for adventurers to find a willing sponsor. For example, Columbus sought many European royal families to support his adventure and was turned down. Eventually, Spain's King Ferdinand and Queen Isabella agreed to finance his journey. Then, capitalism came, and along with it came the concept of incorporation. This opened a door to a new way of raising capitals from investors to finance new business ventures. A famous example is the East India Company, which was created by British merchant...