Chapter C2 Flashcards
A problem of STO’s can be…
unclear regulatory framework for worldwide trading
What are STOs?
Security Token Offerings
True / False: Security tokens are defined by their value separate from external factors & tradable opportunities.
True.
Which legal tests can be used to define whether a token generating event is a STO?
Reves test, Munchee test
Which limits do soft and hard caps define?
Soft caps define the minimum amount of capital a team wants to raise,
Hard caps define the maximum amount of capital a team would take
Security Tokens are
a representation of a security investment contract
True / False: From the presale to the main sale of an ICO, the discount on the token is traditionally rising.
False.
What makes security tokens so promising?
Transparency, Insurance,
Reissuance
What does ICO stand for?
Initial Coin Offering
True / False: As ICO campaigns get closer to their hard caps, the FOMO (fear of missing out) decreases.
False.
Problems of ICO’s include:
low certainty about the future of the investors capital, the lack of a business plan by ICO companies,
the potential lack of data security
A _____ cap is typically the least amount of funds a project needs to exist.
soft
_____ contracts define the aspects (terms and conditions) of digital security both from an operational and legal point of view.
smart
The _____ cap is the absolute highest limit of funds that the team would take.
hard
In order to issue a STO, an issuer must choose which blockchain ________ will be used to develop the token.
protocol
______ tokens can represent shares of company stock and are defined as value representations based on blockchain.
Security
The advantages of Regulation
_______ in the US are less bureaucracy and that unaccredited investors can participate.
crowdfunding (CF)
The fact that only accredited investors are allowed to invest and issuers are responsible for verifying investors is a disadvantage of regulation ______ in the US.
D
________ tokens represent future access to a company’s product or service.
Utility
Security tokens are tokens…
that are expected to increase in value due to the efforts of others,
that are subject to federal securities regulations,
that can represent shares of company stock
Which types of STO regulations exist in the USA?
A+
D
CF
A problem of STOs can be…
unclear regulatory framework for worldwide trading
True / False: A security token may represent shares of company stock.
True.
Utility tokens…
are also called user tokens or app coins,
represent future access to a company’s product or service
A utility token is the same as a security token.
False.
True / False: Blockchain is a technology that allows for double spending.
False.
Blockchain is a technology that…
provides an encrypted file,
prevents double-spending,
incorporates immutability
Smart contracts involve…
a Buyer and a Seller
A “security” can be defined as…
an investment contract,
a financial instrument,
a representation of ownership or rights to ownership
