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)

Summary

In this chapter, we discussed a traditional fundraising roadmap for a startup. At its formation stage, seed money and angel funds are often tapped to support activities such as ideation, the creation of a company, and the development of a Minimal Viable Product (MVP). VC funds will usually invest in the startup to finance the work after an MVP is formed. PE funds will invest in a startup (company) that reaches its growth or later stage and will most likely have an established business model so that they can seek additional working capitals. IPO is the step for turning a privately held company into a public company by listing its equity securities at stock exchanges. Mezzanine capitals bridge funds before an IPO takes place.

We then discussed ICOs, which is a primarily crowdfunding-based fundraising method. ICOs became the default choice by many blockchain startups thanks...