Tokens and types - Explained

   2018-12-29       153        Business
Rating :
It is very difficult to define the term token as it has many forms and features .Thus token is one which can do one or more of the following functions.
Cryptocurrency is spreading to the knook and corner of today's digita world. As there are more and more beneficial inventions and technologies enters into the crypto world , makes cryptocurrency more viral. Cryptocurrency is a digital asset prefered by many individuals to trade online to meet high profit.
Cryprto Tokens are one which made recent entry and created a tough situation for cryptocurrency.

Tokens - What is it ??

 It is very difficult to define the term token as it has many forms and features .Thus token is one which can do  one or more of the following functions.
A currency, used as a payment system between participants
A digital asset or right
A share in a company or project
A reward for contributors 
Payment for using a system/product/service

Types of Crypto Token :

The crypto tokens are classified into 
Equity Tokens
Utility Tokens 
Security Tokens 

Security Tokens :

Security token is the one which  passes the Howey's test . In other words security tokens are one that comprises of security agreement and which allows investors to claim for profit/share .

Security Token Offering :

Security token offering is a crowdfunding process , which is a new form of ICO .The main  difference between ICO and STO , is that ICO provides utility token ,whereas STO provides security token.
To know in detail about Security Token Offerings concept , checkout this blog : Security Token Offerings Services & Development Company

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