Tokens and types - Explained
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
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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