Another type of token that is very popular especially when it comes to cryptocurrency tokens is equity tokens. Between the 3 different types of tokens, equity tokens are quite similar to security tokens but are different in their own way.
Equity tokens represents ownership of the underlying assets which the equity tokens represents. Anyone who invests in an equity token has ownership in the underlying asset which the equity token represents. The percentage of ownership depends on the amount of tokens owned.
Benefits of Equity Tokens
- Represents ownership of an asset
- They run and operate on the blockchain
- Can be issued through public placement
- Secures investors rights
- These tokens are managed by a regulatory body
Example – RRT Token
An example of an equity token is the RRT Token by Bitfinex. RRT Token is an equity token on the blockchain created to compensate the people that were victims of the security breach that affect Bitfinex. Anyone who owns the RRT Token owns a percentage share of the underlying asset.
RRT Token are digital token or equity token on the blockchain that serves as ownership of a percentage of the underlying asset which the equity token represents. The percentage of ownership depends on the amount of RRT Tokens tokens owned. RRT Token has a current price of $0.054376 and can be traded on the Bitfinex exchange.
