Bitcoin Forum

So from what I know:

-Utility tokens: digital coins used to transfer value or gain access to decentralized networks. (ex. ethereum, bitcoin, ripple)

-Security tokens: digital coins that represent shares in traditional financial assets

IMO security tokens will be the new revolution in crypto. I guess you can think of security tokens as a stock market. I'm only bringing this up because I saw a project called Polymath where they're building a platform for companies to launch their own legal security tokens.

What are your thoughts? Do you believe in securities?

Bitcoin is not a utility token  ;D ;D ;D Security tokens may be hot in the future, but right now they are the least loved tokens in the field.

But isn't bitcoin a security since it is used to transfer value?

I think utility tokens that claim to be securities are the ones that aren't loved at all and the ones the SEC is pursuing. I see a big opportunity in the finance sector for securities and blockchain.

I see a big role of blockchain in securities int he upcoming year. Blockchain atm is disrupting every sector except for securities. Very excited for Polymath's progress and interested to see how they navigate those unknown waters.

Security tokens, as ours are, entitle you to a share of profits and as such, in the USA, fall under the rulings of the securities and exchanges commission, which you probably know, and they don't like them. But yes, with the right projects these will take off.

Utility tokens can also be used like voting tokens so not just for access to networks which has huge potential in the future.

What do you think of Polymath and their project? Already raised $20 million in their pre-sale. I read their whitepaper and it's pretty impressive: https://drive.google.com/file/d/0B2pD5w-G5-sJVGc5YjdmZ0hsYVE/view

It looks to me, after a very brief scan of the wp that they want to be a middle man between investors and ICO's which offer security tokens. Most companies issuing security tokens, as we are, take due diligence to make sure they are in legal compliance. For example, security tokens are not yet allowed in the USA so we, as do many ICO's, have to ban residents of that country along with some others as well.

It seems they want to profit in the middle between an investor and ICO which in the end will cost the investor more.

They are sort of acting as the middleman, but at the same time I think they are making it easier for older establishments like the finance industry  to launch their own securities. It seems like that's their target market as well.

I think that utility tokens will rule cryptoworld still. Other type of security coins are generally overrated.
If I need to have shares of a thing, I would basically prefer to have legal real world shares NOT tokens.

I have been very interested in Polymath lately. For me personally, I see their platform as a stock market on the blockchain. Think about IPO's, they're already doing that. Essentially polymath would be facilitating issuing the token itself and creating a marketplace for investors. Very intriguing concept imo

 Utility tokens are very attached to the product. Thete are some application or  product in which utility token acts as an internal currency. Utility tokens are using for all services inside app.

One word one platform: Polymath. Polymath is going to come out in 2018 and it will be THE place to trade security tokens or that is what they aim to do. Big times ahead for crypto, regulation, and securities.

Yes I completely agree. I don't think a lot of people realize just how big securities will be lol. They are truly missing out.

Now I'm just waiting on polymath to announce their sale if they even make it public (i don't even see them needing to do that either)

Midas is an investment app for retail investors on top of the Melon protocol.

The Token Generation Event is planned for end of Q2 2018 and the launched token is an uncertified security under Swiss law. The founders of Midas actually think that tokenized securities are the use-case of the future.

Their view on the topic of tokenized seucrities and what exactly they are launching you can find in this MEDIUM POST (https://medium.com/midas-app/tokenized-securities-are-the-future-thats-why-we-launch-one-e8353d14ae50)

Utility tokens - also called user tokens or app coins, represent future access to a company’s product or service.
example - aleacoin.io

Security Tokens - if a crypto token derives its value from an external, tradable asset, it is classified as a security token and becomes subject to federal securities regulations.
example - Bitcoin

What are Security Tokens?

Security tokens are the tokens which are issued to the investors in the sale or at the time of ICO for the exchange of money
or Cryptocurrency.

For this token, investors get the dividends, getting the share in profits as well as they get an interest for the investment made by
them. It is the platform where shares and voting rights are provided to the investors via blockchain platform.

Examples of Security Tokens:

 tZERO
 Polymath

What are Utility Tokens?

Utility tokens are those which are giving investors an access to the product or their services at a discounted rate in future. This
token is issued basically via ICO and later that money is getting used to develop the blockchain and maintain the infrastructure of the company.

Under this token, investors can redeem this token to get the services from the company. Also, later these redeemed token can be
issued to new users who are willing to invest or to buy their services.

Example of Utility tokens:

 Filecoin
 Sia
 Ether

To continue reading: Difference Between Security Tokens And Utility Tokens (https://cointopper.com/guides/ico-basics-difference-between-security-tokens-and-utility-tokens)

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With ICO’s being used for pump and dump schemes with no path to redemption, it is becoming increasingly difficult for investors to establish trust and invest in any cryptocurrency project. This is where Security Token Offering comes in. Security Tokens or digitized assets are financial securities that are compliant with SEC regulations.

My first involvement in security ico was a disaster,  i wasted my time working for them, security token isn't the best, i prefer utility tokens than security tokens.