Futures Friday: Security Tokens

The first STO Market report issued in January 2020 is blowing the crypto web. BTCMEX finds out about Security Tokens and hype around it here.

Future of Crypto by BTCMEX

Swiss regulator Finma breaks tokens into 2 categories: utility tokens and security tokens. A utility token is a coin backed up by a project, and this is the type of investment most of us are used to making. Usually, utility tokens are Ethereum based, as this is one of the simplest ways of making a new token and programming it so the user is granted access to some utility. A security token, on the other hand, need not have a utility. 

Security tokens are discussed across the web a lot yet not defined properly. They are also sometimes called equity tokens, and are often compared to the way in which buying shares on the traditional stock market confers partial ownership of a company.

Read the full article on BTCMEX.

www.btcmex.com

Please note, that the article is a part of BTCMEX Blog, the views and opinions expressed here are the contributing author’s only, and do not necessarily represent the views of the company.

Julia Bulakh for BTCMEX