Chapter C2

Question 1

A problem of STO’s can be…

Answer 1

unclear regulatory framework for worldwide trading

Question 2

What are STOs?

Answer 2

Security Token Offerings

Question 3

True / False: Security tokens are defined by their value separate from external factors & tradable opportunities.

Answer 3

True.

Question 4

Which legal tests can be used to define whether a token generating event is a STO?

Answer 4

Reves test, Munchee test

Question 5

Which limits do soft and hard caps define?

Answer 5

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

Question 6

Security Tokens are

Answer 6

a representation of a security investment contract

Question 7

True / False: From the presale to the main sale of an ICO, the discount on the token is traditionally rising.

Answer 7

False.

Question 8

What makes security tokens so promising?

Answer 8

Transparency, Insurance,

Reissuance

Question 9

What does ICO stand for?

Answer 9

Initial Coin Offering

Question 10

True / False: As ICO campaigns get closer to their hard caps, the FOMO (fear of missing out) decreases.

Answer 10

False.

Question 11

Problems of ICO’s include:

Answer 11

low certainty about the future of the investors capital, the lack of a business plan by ICO companies,
the potential lack of data security

Question 12

A _____ cap is typically the least amount of funds a project needs to exist.

Answer 12

soft

Question 13

_____ contracts define the aspects (terms and conditions) of digital security both from an operational and legal point of view.

Answer 13

smart

Question 14

The _____ cap is the absolute highest limit of funds that the team would take.

Answer 14

hard

Question 15

In order to issue a STO, an issuer must choose which blockchain ________ will be used to develop the token.

Answer 15

protocol

Question 16

______ tokens can represent shares of company stock and are defined as value representations based on blockchain.

Answer 16

Security

Question 17

The advantages of Regulation

_______ in the US are less bureaucracy and that unaccredited investors can participate.

Answer 17

crowdfunding (CF)

Question 18

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.

Answer 18

D

Question 19

________ tokens represent future access to a company’s product or service.

Answer 19

Utility

Question 20

Security tokens are tokens…

Answer 20

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

Question 21

Which types of STO regulations exist in the USA?

Answer 21

A+
D
CF

Question 22

A problem of STOs can be…

Answer 22

unclear regulatory framework for worldwide trading

Question 23

True / False: A security token may represent shares of company stock.

Answer 23

True.

Question 24

Utility tokens…

Answer 24

are also called user tokens or app coins,

represent future access to a company’s product or service

Question 25

A utility token is the same as a security token.

Answer 25

False.

Question 26

True / False: Blockchain is a technology that allows for double spending.

Answer 26

False.

Question 27

Blockchain is a technology that…

Answer 27

provides an encrypted file,
prevents double-spending,
incorporates immutability

Question 28

Smart contracts involve…

Answer 28

a Buyer and a Seller

Question 29

A “security” can be defined as…

Answer 29

an investment contract,
a financial instrument,
a representation of ownership or rights to ownership