The individuals, consumer brands and social movements (“Stars”) that are tokenized on the Fyooz platform are called Star Tokens. Issuers can generate Star Tokens on behalf of a star. Issuers can also sell and allocate their Star Tokens to users.
The Star token will be an Ethereum-based token of value. The token itself is a digital asset, bearing value by itself based on its underlying assets, properties and/or associated rights and giving by it’s demand. ****Ethereum-based tokens rely on a well-established Ethereum infrastructure, benefiting from several advantages:
- Security and predictability (as opposed to, for example, having to run an independent blockchain network).
- Use of robust and well-supported clients (Ethereum-based tokens can be managed with official Ethereum clients).
- High liquidity (interchangeable with other Ethereum-based tokens or Ether), easier listing on exchanges with infrastructure already in place.
Our Ethereum-based token contract complies with the ERC 20 standard.
Star Token Generation
Star Token Sale (Primary Market)
How are Star Tokens sold? What is the price of a Star Token?
In a Star Token Sale tokens are sold in the primary market. The App enables to sell previously generated Star Tokens to the Users. The Issuer is free to define the price of each Star Token that is charged during the primary market issuance. The Application will define the currencies that must be used to purchase the Star Tokens. The Issuer can further decide at his/her discretion whether he/she wants to use a whitelist or pre-registration process and/or to limit the amount of Star Tokens that can be purchased by an individual User.
While the Issuer is free to decide whether he/she wants to keep the Star Tokens or sell them to the Users, the Company will contractually reserve its right to prevent the primary market issuance of Star Tokens. This will mainly be the case if the Issuer has violated the Fyooz Issuer Terms or if such action is required for legal or regulatory reasons.
Users can participate in a Star Token Sale and subsequently hold their Star Tokens on a personalized, secure and non-custodial cryptocurrency wallet.
Star Token Sale (Secondary Market Trading)
Trade on the Exchange
What’s the classification of Star Tokens?
Star Tokens are classified as utility tokens. As they do not exceed the functionality limits, classification as payment or investment tokens can be excluded. Star Tokens do not have the legal qualification of security since it does not give any rights to dividends or interests.
Based on the Federal Council’s report, P2P platforms are not subject to licensing under the FinfraG. This applies regardless of whether securities (or investment tokens) are traded on the platform. P2P platforms are characterized by the fact that they do not have an operator, do not store private keys and therefore cannot access the tokens of the users. The tokens are located decentrally on the wallets of the users. Trading activities on a P2P platform are carried out directly on the blockchain between the users with the aid of smart contracts. The underlying protocol (0x) also ensures that the trade itself is peer-to-peer.
It is important to consider the fact that the functionality of Star Tokens can change subsequently. In order to minimize the associated risk, Urknall AG reserves the right to cease trading in Issuer Tokens if the functionality limits are exceeded.