Keeping you informed

Our valued investors – as a cornerstone of our commitment to transparency, we are sharing with investors the following preliminary studies and research we are currently considering as possible ways to enhance the value of reZcoin™ and increase the value of our investors' investments.

However, we stay abreast of ever-advancing technology and are flexible in our approach, adopting the technologies that best suit reZcoin™ in the future.

'Food for Thought'

Security Token Offering (STO)

A Security Token Offering (STO) represents a bridge between traditional finance and emerging blockchain technology, offering a compliant and secure way to raise capital. They provide investors with legally recognized securities in a digital form, combining the advantages of blockchain with the protections of traditional securities laws.

STO is a method of raising capital through token issuance, where the tokens issued are classified as securities, unlike Initial Coin Offerings (ICOs), which often issue utility tokens that provide access to a network or service, STOs issue tokens that represent ownership or other rights in an asset, similar to traditional securities like stocks or bonds.
 

Advantages of STOs

·   Regulatory Clarity: Compliance with securities regulations provides legal protection and reduces the risk of regulatory backlash.

·   Investor Trust: Transparency and regulatory compliance build investor confidence.

·   Liquidity: Security tokens can be traded on secondary markets, providing liquidity to investors.

·   Fractional Ownership: Enables fractional ownership of assets, making it easier for smaller investors to participate.

Here’s a detailed outline of an STO:

Key Components of an STO

1. Security Tokens:
    
   • Definition: Digital assets that are backed by real-world assets, such as equity, debt, or revenue.
   • Characteristics: Provide legal rights to holders, such as ownership, profit sharing, dividends, or interest payments.
2. Regulatory Compliance:
    
   • Registration: Must be registered with regulatory bodies (e.g., SEC in the U.S.) or qualify for an exemption.
   • KYC/AML: Know Your Customer (KYC) and Anti-Money Laundering (AML) processes are mandatory to verify investor identities and prevent illegal activities.
3. Underlying Asset:
    
   • Types: Can represent a variety of assets, including equity in a company, real estate, bonds, or other financial instruments.
   • Valuation: Requires proper valuation of the underlying asset to determine the token price.

STO Process

1. Preparation:
    
   • Business Plan: Develop a comprehensive business plan and strategy.
   • Legal Framework: Engage legal experts to ensure compliance with securities laws and regulations.
   • Whitepaper: Create a detailed whitepaper outlining the project, the underlying asset, token economics, and the rights of token holders.
2. Token Issuance:
    
   • Token Creation: Develop the security tokens on a blockchain platform (e.g., Ethereum, using the ERC-1400 standard).
   • Smart Contracts: Deploy smart contracts to manage token issuance, transfers, and compliance.
3. Regulatory Filing:
    
   • Prospectus: Prepare and file a prospectus or offering memorandum with the appropriate regulatory body.
   • Exemptions: Alternatively, file for exemptions such as Regulation D, Regulation S, or Regulation A+ in the U.S.
4. Marketing and Fundraising:
    
   • Investor Outreach: Market the STO to accredited investors or the public, depending on the regulatory approval.
   • Road shows: Conduct road shows, webinars, and other marketing activities to attract investors.
5. Token Distribution:
    
   • Sale Period: Conduct the token sale over a predefined period.
   • Allocation: Distribute tokens to investors upon successful purchase, ensuring compliance with regulatory requirements.
6. Post-Offering:
    
   • Secondary Trading: Enable secondary trading of security tokens on compliant exchanges or Alternative Trading Systems (ATS).
   • Ongoing Compliance: Maintain ongoing compliance with reporting, disclosure, and other regulatory obligations.

Challenges of STOs

• Regulatory Complexity: Navigating the complex regulatory environment can be challenging and costly.
• Market Acceptance: Gaining acceptance from traditional investors and financial institutions.
• Technology and Security: Ensuring the security and reliability of blockchain technology and smart contracts is critical.

• The best is yet to come!

READ MORE >>>

STO
Security Token Offering: The Complete Handbook
Navigating security token standards, regulatory compliance,
custom development, launch strategies, and STO specifics across industries.