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)

Resale of securities Rule 144/144A/Section 4(a)(1½ ) / Section 4(a)(7)

Securities issued in an unregistered offering under the exemptions mentioned previously are restricted securities. In order to transfer or resell the restricted security by the holder, it has to be either registered or exempt from the registration requirement, which is a separate requirement from its initial offering.

The secondary sale of such restricted securities in the US is governed under these rules.

Rule 144 exemption

The Rule 144 exemption is a safe harbor provision. This allows nonaffiliate public resales of a private company's restricted securities after a one-year holding period by the security holder.

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