Dear Professor @pelon53 this is my homework entry...

What is token?

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Ais token a type of currency that represents a specific amount of money. Fintech companies or those involved in the use of a blockchain to represent an active or have a specific utility problem. It is often approved by a society, and it has more uses than just as a means of payment since it can represent any fungible and negotiable asset. Tokens are generated using the protocol of an existing cryptocurrency on a blockchain.

Tokens first appeared several centuries ago to make up for the official currency's scarcity. Coining them in order to exchange them for real coins was the most popular method.

Utility tokens:

These are tokens that give their owners access to a platform's various services through a blockchain. They are described as not being made as investments in theory. As a result, if they are well-structured, they can be excluded from each country's laws on valuable products. If you're wondering what they do, it's to stimulate the microeconomics of the blockchain ecosystem. It makes project funding easier in this way. **The BAT (Basic Attention Token) **is an example of this type of token. What we should be clear about is that a valuable token does not entitle you to company stock or profits.

Explaining the BAT (Basic Attention Token)

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Basic Attention Token, or BAT, is a digital advertisement token that runs on the Ethereum blockchain. The goal of the BAT token is to establish a decentralized ad exchange marketplace that will link advertisers, publishers, and users. The aim of BAT is to monetize consumer interest while eliminating any other unnecessary costs associated with ad networks.

The Basic Attention Token [BAT] is responsible for the following:

• It can be used as a unit of trade without the need middle men.
• Users, authors, and marketers are all rewarded.
• Users are compensated for paying attention to advertisements.
• Publishers receive a portion of ad sales.

Security tokens

Are those that give its owner the right to assert their investment interests. It may be the right to engage in a legal organization, provide money, benefit, or act as a borrower or lender, among other things.” A right to an underlying asset, such as a collection of real estate, cash flow, or shares in another fund, is also represented by this type of token. One-Time Passwords, or OTPs, are the most widely used. One of the Example of Security token is BCAP

Explaining BCAP Blockchain capital as an example of Security token

Blockchain Capital was created in 2013 with the goal of assisting entrepreneurs in creating world-class blockchain companies and ventures by providing them with the resources they need to succeed, including capital, domain knowledge, alliances, hiring, and strategy. Since its inception, Blockchain Capital has funded 75+ companies and ventures, making it one of the industry's oldest and most successful venture investors. The corporation is a multi-stage investor who invests in both equity and tokens. The BCAP, which the company sold through a security token sale in April of 2017, was the world's first ever tokenized investment fund and, by extension, the blockchain industry's first security token. Blockchain technology, according to the firm, has the potential to disrupt legacy industries and build entirely new markets and business models.

BCAP Market History

The picture below shows the trading history for BCAP TOKEN from Feb to April, 2021.

EQUITY TOKEN

An equity token is a representation of a share in the underlying business. Holders simply own their given share of the overall enterprise, just as they do for any stock purchase. They are entitled to a share of the company's income as well as a say in the company's future. The method of documenting ownership is the only significant distinction between an equity token and a conventional stock. A typical stock is recorded in a database and comes with a paper certificate. On a blockchain, an equity token is used to track corporate ownership.

Explaining "Slice" as an example for Equity token

Slice is a cross-border investment forum for commercial real estate (CRE). Slice provides unrivaled liquidity to traditional real estate equity investments while also serving as an appealing portfolio diversification mechanism for high-net-worth individuals (HNWI). Slice is able to deliver private sector returns with public market liquidity as a result of this combination. Investors in Slice's investments would have the option of receiving consistent quarterly distributions from cash-flowing assets or high-yielding value-add ventures with significant but infrequent dividends.

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