A Primer on Securities – Part IV (final)

Author: Fatima Castiglione Maldonado, Director of https:/Ethernity.live

Securities: Pre-Sale and Sale Cycle

Securities are traded through a cycle that includes several stages, each of which allows the various actors to execute certain actions, or not. These stages are detailed below. Although the exact stages may vary (depending on the country, the market, the institution, or a specific security) the stages shown below are typical in the issuance of securities and, in practice, the actual cases will be very similar.

Stages: Setup, Prelaunch, Presale, Sale, Lock, Market, Discontinuation.

  1. Preparation
  • how do you start

the preparation stage is the first, and as such, it starts when creating the token by calling the token constructor with all the mandatory parameters

  • what can be done

adjust token parameters

issue tokens for the first time

book tokens for:

management fees

carried interest fees

legal fees

accounting fees

custody fees

advisory fees

other miscellaneous charges

  • what cannot be done

the tokens cannot be marketed in any way

you can not transfer tokens under any circumstances

  • how to end

passing to the next stage

2. Pre-launch

  • how do you start

by calling the pertinent token function

  • what can be done

resolvers can be added or removed for KYC, AML and Legal Advisors

addresses can be added to whitelist and blacklist

tokens can be reserved for:

management fees

carried interest fees

legal fees

accounting fees

custody fees

advisory fees

other miscellaneous charges

  • what cannot be done

the tokens cannot be marketed in any way

the tokens cannot be transferred under any circumstances

  • how do you finish

passing to the next stage

3. Presale

  • how do you start

by calling the pertinent token function

  • what can be done

addresses can be added to whitelist

token sales can only be made to addresses listed on whitelist

tokens can be reserved for:

management fees

carried interest fees

legal fees

accounting fees

custody fees

advisory fees

other miscellaneous charges

  • what cannot be done

you cannot buy tokens automatically from any address

  • how do you finish

passing to the next stage

4. Sale

  • how do you start

by calling the pertinent token function

  • what can be done

tokens can be purchased automatically from any address (that is not in the blacklist)

  • what cannot be done

no tokens can be reserved

how do you finish

passing to the next stage

5. Lock

  • how do you start

by calling the pertinent token function

  • what can be done

wait 😀

  • what cannot be done

the tokens cannot be marketed in any way

the tokens cannot be transferred under any circumstances

no tokens can be reserved

  • how do you finish

passing to the next stage

6. Market

  • how do you start

by calling the pertinent token function

  • what can be done

tokens can be bought and sold in the market like any ERC20 token

  • what cannot be done

no tokens can be reserved

  • how do you finish

passing to the next stage

7. Discontinuation

  • how do you start

by calling the pertinent token function

  • what can be done

nothing

  • what cannot be done

the tokens cannot be marketed in any way

the tokens cannot be transferred under any circumstances

no tokens can be reserved

  • how do you finish

this stage does not end

Top