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Security Tokens and Stablecoins Quick Start Guide
Security Tokens and Stablecoins Quick Start Guide

Security Tokens and Stablecoins Quick Start Guide: Learn how to build STO and stablecoin decentralized applications

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Profile Icon Sun Profile Icon Angela Kwok Profile Icon Xun (Brian) Wu
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Can$41.99
Full star icon Full star icon Full star icon Full star icon Empty star icon 4 (2 Ratings)
Paperback Apr 2019 234 pages 1st Edition
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Arrow left icon
Profile Icon Sun Profile Icon Angela Kwok Profile Icon Xun (Brian) Wu
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Can$41.99
Full star icon Full star icon Full star icon Full star icon Empty star icon 4 (2 Ratings)
Paperback Apr 2019 234 pages 1st Edition
eBook
Can$12.99 Can$33.99
Paperback
Can$41.99
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Free Trial
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Can$12.99 Can$33.99
Paperback
Can$41.99
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Free Trial

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Security Tokens and Stablecoins Quick Start Guide

STO - Security Token Offering

Chapter 1, Introduction to Blockchain, covered topics about blockchain technology and, specifically, the details regarding bitcoin and Ethereum. From our discussion, you should have got the idea that blockchain is a decentralized technology. Companies, government institutions, and international organizations (for example, UNICEF) are utilizing this technology to improve efficiency and lower costs.

Whenever a disruptive technology emerges, startups are commonly the pioneers in turning it into real applications and disrupting current business models. A fundamental question is how these startups are funded. Without being properly funded, there will be very few or no startups working on new projects, which will ultimately affect success or failure of the new technology. For raising funds to support blockchain startups, new funding methods, for example...

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...

The initial coin offering

In the previous section, we talked about a traditional fundraising roadmap for blockchain startups. However, startup founders do have concerns regarding private investors such as VC capitalists. It is possible that VC capitalists establish their own management team and push out the founders when the company is on a solid footing.

Internet and blockchain provide technical platforms for entrepreneurs who can reach out directly to public investors for raising funds. Consequently, ICOs became the most popular fundraising methods for founders to finance their blockchain projects. ICOs give blockchain startup founders a way to bypass IPOs and raise a large sum of money from public investors at the startup formation stage. In 2017 and 2018, tens of billions of USD were raised via ICOs. Since ICOs are closely related to tokens and crowdfunding, we will first...

The STO

STOs are emerging to be the new way of crowdfunding since they offer investors with the governance and protection that isn't provided by ICOs. A Toronto-based company, Node Blockchain Inc., has published a recent study (https://drive.google.com/file/d/1Kuwu0bWR8Mk5TOErJ1QNBbM3bLj0T6_p/view) supporting the idea of STOs being the future fundraising methods to support the growth of the blockchain industry.

An ICO issues either a coin (cryptocurrency) or utility token. STO issues a security token, which is a digital stock certificate. It is different from a utility token. A utility token is treated to be a commodity, like gold with a useful value, but isn't used for security. To compare STOs and ICOs in detail, we need to explore the concept of security first.

Security...

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...

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Key benefits

  • Understand key Blockchain and Ethereum platforms concepts
  • Step-by-step guide to developing STO smart contracts on Ethereum
  • Monetize digital tokens under various U.S. securities laws

Description

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.

Who is this book for?

This book is ideal for blockchain beginners and business user developers who want to quickly master popular Security Token Offerings and stablecoins. Readers will learn how to develop blockchain/digital cryptos, guided by U.S. securities laws and utilizing some real use cases. Prior exposure to an Object-Oriented Programming language such as JavaScript would be an advantage, but is not mandatory.

What you will learn

  • Understand the basic requirements for launching a security token offering
  • Explore various US securities laws governing the offering of security digital tokens
  • Get to grips with the stablecoin concept with the help of use cases
  • Learn how to develop security token decentralized applications
  • Understand the difference between ERC-20 and ERC-721 tokens
  • Learn how to set up a development environment and build security tokens
  • Explore the technical design of stablecoins
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Length: 234 pages
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Language : English
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Table of Contents

8 Chapters
Introduction to Blockchain Chevron down icon Chevron up icon
STO - Security Token Offering Chevron down icon Chevron up icon
Monetizing Digital Tokens Under US Security Laws Chevron down icon Chevron up icon
Stablecoin Chevron down icon Chevron up icon
Security Token Smart Contracts Chevron down icon Chevron up icon
Building a Security Token Dapp Chevron down icon Chevron up icon
Stablecoin Smart Contracts Chevron down icon Chevron up icon
Other Books You May Enjoy Chevron down icon Chevron up icon

Customer reviews

Rating distribution
Full star icon Full star icon Full star icon Full star icon Empty star icon 4
(2 Ratings)
5 star 50%
4 star 0%
3 star 50%
2 star 0%
1 star 0%
Mohamed Achraf Oct 04, 2019
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Je conseille
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Dry golfer Aug 13, 2023
Full star icon Full star icon Full star icon Empty star icon Empty star icon 3
All but the last (stablecoin) chapter are very good though books like this should try harder to maintain updated code bases (the testing environment is out of date). It would be nice to have some intuitive descriptions or flow diagrams of standard use cases, or be walked through some of the smart contract source in parallel with what the user(s) are doing.The last chapter is grim. Seems to have been written by a different person. The English is shocking and it's barely more than a list of function interfaces. Very disappointing. Should have an extended example as in the previous chapter. Barely any intuition.
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