Utility Token vs Security Token
The main difference between security and utility tokens is the purpose of their emissions.
What Is a Utility Token?
These are tokens with the help of which users get access to the software utility (or service) of the blockchain platform. They do not promise any benefits, do not give ownership rights to the land, property or other assets of the company, and are not analogs or substitutes for loan agreements. Currently, utility tokens are the most common type of coin. The price of utility tokens during ICO is determined by the issuer — arbitrarily or by the results of economic analysis. Read more…
What Is a Security Token?
Security tokens, on the other hand, is a financial instrument, the main function of which is to make a profit by increasing the price of an asset and/or activities of third parties. Security tokens give holders the right to: share in profits, dividend payments, company capital, assets or their shares, debt payments, etc. Continue reading
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