Security Token Offering: Features, Exemptions, Risks

Offering security tokens is allegedly one of the most attractive ways for blockchain startups to raise funds. However, after the U.S. SEC has made it fairly obvious it’s not really happy about it last year, projects think twice before issuing a token that might be considered a security. In this explainer feature, we answer the most frequently asked questions about security tokens: what they are, how they work, why the SEC doesn’t like them, and how to avoid possible problems.