Intro to Security Tokens

The representation of real world or digital assets on the...

Blockchain
Why a Security & NOT a Utility?

1. It is an investment of money
2. There is an expectation of profits from the investment
3. The investment of money is in a common enterprise
4. Any profit comes from the efforts of a promoter or third party
Characteristics of Security Tokens
● Voting Rights
● Distributions/Dividends/Revenues
● Transfer Rights / Restrictions
● Utility (optional)
● Sold via Regulations such as:
○ Reg CF
○ Reg D
○ Reg A
○ State Crowdfunding (SCOR or MNvest)
 Liquidity of Security Tokens
Exchanges and servicers are launching to permit
streamlined secondary transfers
Summary Security Tokens
● Nexus Where Crypto & Securities Meet
● Unlocking value due to liquidity premium
● Facilitating better communications with shareholders
● Assisting Founders with another exit option
● Easing investor concerns and increasing capital flow to
startup and growing companies