Security Token #derivatives
▻https://hackernoon.com/security-token-derivatives-158758c6a301?source=rss----3a8144eabfe3---4
An Overview of Security Token DerivativesA derivative is a financial contract between two or more parties that derives its value from an underlying asset ie. stocks, commodities or cryptocurrencies. An agreement to buy or sell a particular asset at a predetermined price and a specified time in the future. Derivatives do not have inherent or direct value by themselves. The value of a derivative contract is purely based on the expected future price movements of the underlying asset.Cryptocurrency tokens are special kind of virtual currency tokens that reside on their own blockchains and represent an asset or utility. Tokenizing assets via #blockchain is maturing and we are already seeing great traction in the industry. You can find all the info you need about STOs in these articles:What (...)
]]>Should There Be a #blockchain for Security Tokens?
▻https://hackernoon.com/should-there-be-a-blockchain-for-security-tokens-4efc877ce044?source=rss
OVERVIEW:A tokenized version of assets should be able to demonstrate three key properties on the blockchain: the underlying asset: the virtual representation of the asset; the ownership of the asset: the identity of the asset owners; and the compliance rules of the asset: the set of regulatory and compliance rules governing the ownership and transaction of the asset.Currently, privacy and compliance seem to be the major challenges in launching STOs. Depending on the jurisdiction, investors have to go through strict Know Your Customer (KYC) and Anti-Money Laundering (AML) processes to be compliant and eligible to invest and trade securities. However, due to the borderless, peer-to-peer, transparent and decentralized natures of cryptocurrency, some frictions exist between tokenized (...)
#tokenization #security-token-offering #digital-asset #security-token
]]>Security Tokens — Three Types You Should Know Of
▻https://hackernoon.com/security-tokens-three-types-you-should-know-of-d8146e648be9?source=rss--
Security Tokens — Three Types You Should Know OfSimilar to traditional security, a security token performs the same function except that it confirms ownership through blockchain transactions and also make fractional ownership possible. Federal laws that govern securities also apply to Security tokens with the intention of protecting investors on some levels. Security tokens are programmable. Tokenizing securities, in theory, remove the need of a third party by using smart contracts. For example, a loan “tokenized” on a blockchain could automatically make payments without the use of a traditional middleman like a bank. We discussed deeper on the various regulatory requirements around security tokens previously on Hackernoon.Security Token Offerings (STOs) — What You Need To KnowOriginally, (...)
#whats-an-sto #security-token #sto #ico #security-token-offering
]]>STOs, ICOs, VCs: How do you know what fundraising method to choose for your #startup?
▻https://hackernoon.com/stos-icos-vcs-how-do-you-know-what-fundraising-method-to-choose-for-your
2017 and 2018 has shown us that dramatically huge amounts of money have been raised through ICOs, more than $15 billion (based on icodata.io). And in Summer 2018, it even overtook Seed and Angel investments:(Source: coindesk.com, crunchbase.com)Given the numbers, it’s easy to see why startup founders should select ICO/STOs as their major source of fundraising. Following my #10kqachallenge (where I interview 10,000 experts in different niches: formula.geekforge.io) I asked VCs and crypto fund founders and executives about this question, and here’s how they answered:Andrew Knight — Fund Manager at invictuscapital.comLet’s start with a process of elimination. To run an ICO, your company first needs to have the right product and/or service offering that aligns with the utilization of a token (...)
#venture-capital #crowdfunding #initial-coin-offering #security-token-offering
]]>How do investors view the ICO/STO market in 2019?
▻https://hackernoon.com/how-do-investors-view-the-ico-sto-market-in-2019-b8c91bd2bb26?source=rss
trends.google.comBitcoin is flat and going “to the moon” didn’t happen in January as it had been predicted by most analytics experts. Investors didn’t receive sky-high profits from the increasing price of #bitcoin when the ICO market crashed.. Following my #10kqachallenge (where I interview 10,000 experts in different niches) I asked founders and managers from crypto funds about how they view the market, and we’ve got their answers below.But first, let’s examine some statistics and key metrics that affect the ICO and STO markets.ICO funding continues to go down:▻https://www.icodata.io/stats/2018Total 2019 ICO funding: $20,400,000January ICO funding: $20,400,00. It’s a 75x decrease compared to January 2018.It’s too early to talk about STO statistics, but based on IcoBench there are more than 150 (...)
#cryptocurrency #initial-coin-offering #security-token-offering #blockchain
]]>An STO Lifecycle: The Complete List of Milestones
▻https://hackernoon.com/an-sto-lifecycle-the-complete-list-of-milestones-8fcadc2e51f8?source=rss
STO Lifecycle: TheComplete List of MilestonesHow to issue a digital security, what are the steps: a brief outline of the 12 stages that a company will take to launch an STO complying with all the legal issues.We intentionally skip the zero stage: the decision to take the very STO as a way of raising funds and focus only on practical steps.This is neither a call for action nor a 100%-safe guide. One must do their own research to make conscious choices and deliberate decisions.1. Business model analysis… to make the decision what type of securities to issue for attracting investments.This stage is about finding the best instrument to attract investments to the company. Common questions are raised, like when is it coming to financing; debt or equity?Let’s assume that STO suits you. Then, the (...)
#sto-milestones #sto-lifecycle #legaltech #security-token-offering #crowdfunding
]]>#ico vs STO: All You Need to Know About the New Fundraising Method in the Crypto World.
▻https://hackernoon.com/ico-vs-sto-all-you-need-to-know-about-the-new-fundraising-method-in-the-
There is currently an intense debate raging within the crypto community. This debate is centered around the emergence of a new method of raising money for #blockchain projects, this method is called a Security Token Offering (STO).Some people believe that STOs, will eventually completely replace the original Initial Coin Offerings (ICOs). Others believe that STOs in their current form actually take away from a lot of the original positives that crowdfunding through an ICO provided.In this guide, we will explore the key differences between ICOs and STOs, so that you can be clued up on the new fundraising method in the world of crypto.What is an ICO?Firstly, we will start by briefly explaining what an ICO is.An ICO is very similar to an IPO in the world of traditional investments. ICOs (...)
]]>Are Security Token Offerings (STOs) the Actual Solution to All ICO Problems?
▻https://hackernoon.com/security-token-offering-sto-is-it-the-real-solution-to-all-ico-problems-
Investing in popular trends is often the choice of many investors as they keep their eyes open for all kinds of opportunities. While some of these choices might turn out to be risky and less profitable, others could also potentially lead to humungous returns if the bets are placed right.If you are the kind of person who constantly looks out for trending investment opportunities in the crypto world, there’s a high probability of you thinking about investing in STOs. If that isn’t the case, I’d like you to read further and develop an understanding of this new buzzword in the crypto world. Taking the next step is purely your choice.What is an #sto Really?STO (Security Token Offering) is the new big trend in the crypto world that is attracting eyeballs these days. Some even say that they’re a (...)
#blockchain-technology #security-token-offering #blockchain #initial-coin-offering
]]>Security Token Offerings (STOs) — What You Need To Know
▻https://hackernoon.com/security-token-offerings-stos-what-you-need-to-know-8628574d11e2?source=
Security Token Offerings (STOs) — What You Need To KnowIn opposition to tokens offered in an #ico which do not give any rights or obligations, and instead provide access to a specific network, platform or service, tokens offered in an #sto are actual financial securities that are backed by something tangible like the assets, profits, or revenue of the company, and which offer legal rights such as voting or revenue distribution.A security token performs the same function as conventional security, except that it confirms ownership through blockchain transactions and also make fractional ownership possible. Security tokens are subject to federal laws that govern securities, protecting investors on some levels. Security tokens are programmable. Since these securities are tokenized on a (...)
]]>Are STOs All They’re Cracked Up To Be?
▻https://hackernoon.com/are-stos-all-theyre-cracked-up-to-be-10e1c9faed0a?source=rss----3a8144ea
Imagine being able to own .1% of a Picasso or a fourth of an Uber cab that you split with three of your friends. Currently, such things would be burdensome at best or just nearly impossible. However, security tokens offerings (STOs) are providing a path to fractional ownership by enabling the tokenization of virtually anything we can think of. Such offerings have been sweeping the #cryptocurrency space, providing a regulated alternative to ICOs. Since security tokens are backed by underlying assets or profits, investors gain access to equity, voting rights, and dividends. In theory, this should allow anyone to invest into anything, opening the doors for unlimited opportunities never seen before. Yet in practice, there are quite a few obstacles one needs to be aware of before getting (...)
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