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Alternate cryptocurrencies => Altcoin Discussion => Topic started by: dgoswami12 on July 31, 2018, 12:59:08 PM



Title: Difference between Security and Utility token
Post by: dgoswami12 on July 31, 2018, 12:59:08 PM
Hello guys i am new in crypto , can anyone please explain me what is the main difference between Security token and Utility token. In recent time I heard a lot about this topic but dont know so much about it


Title: Re: Difference between Security and Utility token
Post by: prechi on August 02, 2018, 08:49:43 PM
Simply put, Utility token gives access to the product that the company issuing it is developing or has developed while security tokens can be seen as digitized equity in a company. In security tokens, the main use-case and reason for the contributors to buy the tokens is due to the anticipation of future profits in form of dividends or price appreciation. You can check google for more and better detailed explanation.


Title: Re: Difference between Security and Utility token
Post by: Awesomus Maximus on August 02, 2018, 09:04:47 PM
Do we really need another post. It has been discussed a number of times before:

https://bitcointalk.org/index.php?topic=2605220.0

https://bitcointalk.org/index.php?topic=3446480.0

https://bitcointalk.org/index.php?topic=3002801.0

https://bitcointalk.org/index.php?topic=2856807.0


Title: Re: Difference between Security and Utility token
Post by: Silifatmuda on August 02, 2018, 09:10:28 PM
Sincerely speaking I don't really know about the difference between them
But am really happy to see this post, am interested and want to learn about this.
So I am waiting for anybody that know about it to enlighten me.


Title: Re: Difference between Security and Utility token
Post by: passioncrypto on August 03, 2018, 11:46:19 AM
Just as holding a premium share of an organization, security tokens are equally similar. Security tokens are the ones that have dividends, share of profits, interest or invest in other tokens or assets in making profit. On the other hand, Utility tokens, also known as, app tokens, provide users an access to product or service because of some utility in the decentralized application for which an ICO is being raised.


Title: Re: Difference between Security and Utility token
Post by: easybtcearn2017 on August 03, 2018, 01:15:12 PM
Security tokens are a type of crypto tokens that are issued to the investors in a sale typically known as a token sale or in ICO, in exchange for money. Utility tokens are also app tokens. They are needed to have some utility in the decentralized app for the team behind the ICO


Title: Re: Difference between Security and Utility token
Post by: Brianlee0112 on August 04, 2018, 01:58:29 PM
Crypto tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profit are known as security tokens. They are similar to holding the share of a company. Whereas,Utility tokens, often referred as app coins or app tokens, provide users with access to a product or service because they have some utility in the decentralized application that a team is building and raising ICO for.


Title: Re: Difference between Security and Utility token
Post by: Upopety on August 04, 2018, 04:15:10 PM
I think the future growth of bitcoin is infinite. At present most of of the companies are adopting digital currencies and giving more secure and professional services.


Title: Re: Difference between Security and Utility token
Post by: elemosho.crypto on August 04, 2018, 04:34:59 PM
Security Token and Utility Token these two terms are very similar in Crypto- space for now though they have other meaning in SEC investments. The security token is offered with security credentials as it is just for the security-related token. The utility token is offered with utilities as most of the tokens come up with various reasons behind the project. These are my assumptions. I would like to know more from the discussions.


Title: Re: Difference between Security and Utility token
Post by: MetalCoinMTC on August 04, 2018, 05:05:56 PM
Security tokens and utility tokens are both very safe and reliable. However, you must verify the information about this before investing. You will invest in whatever feels good for you. But I want to know the fundamental differences between them.


Title: Re: Difference between Security and Utility token
Post by: cryptogalaxy789 on August 04, 2018, 10:18:16 PM
Security tokens are like stocks of a company. You get dividends and hold a percentage of stakes of the company. When the company goes bankrupt, you’ll be compensated after its assets has been liquidated. Utility tokens can be used in specific platforms that the company is issuing ICOs for. Even though you buy utility tokens you get no shares in the company and if the company goes bankrupt you’ll not be compensated.


Title: Re: Difference between Security and Utility token
Post by: dumplingsandsushi on August 04, 2018, 10:22:51 PM
First, you should know about the difference between a coin and a token.

A coin refers to a crypto that has it's own blockchain (btc, ltc, ripple, etc)

A token refers to a crypto that is built on a platform like etherium or neo (omg, golem, etc.)

It's important because they can have very different functions.
A token has a lot more flexibility because it is part of the platform ecosystem.
So it can be used as payment, consensus, initiating smart contracts, or represent something of value.

A Utility token means it has a function in that ecosystem.
Most often this is a means to pay for services or voting rights or something like that.

A Security token directly correlates to something of value.
This can be real estate, luxury items, publishing rights, etc.


Title: Re: Difference between Security and Utility token
Post by: Beabtc11 on August 04, 2018, 10:35:10 PM
Hello guys i am new in crypto , can anyone please explain me what is the main difference between Security token and Utility token. In recent time I heard a lot about this topic but dont know so much about it

Well mate, the two tokens are really different to each other. Security tokens are crypto tokens issued to investors in a token sale or ICO for the exchange of their money. Crypto tokens that pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders are deemed as ‘security tokens’. While Utility tokens are also called app coins or app tokens. It is so because utility tokens ought to have some utility in the decentralized application that a team is building and raising ICO for.


Title: Re: Difference between Security and Utility token
Post by: BlackandRed654 on August 04, 2018, 11:45:07 PM
Tokens that are backed by tangible features or other tokens or assets to generate profit are referred to as security tokens and Utility tokens enable it's users with a platform where they have access to a product because the tokens are being utilized in the blockchain the ICO is working on.


Title: Re: Difference between Security and Utility token
Post by: ryap12 on August 04, 2018, 11:59:20 PM
Sincerely speaking I don't really know about the difference between them
But am really happy to see this post, am interested and want to learn about this.
So I am waiting for anybody that know about it to enlighten me.

Same here! I thought it's not an interesting topic, but since the Ethereum Blockchain is getting more broad. I hear Market.Space(MASP) is a utility token but didn't mind as  I see all as ERC20 tokens. I guess I'm still far to become an ICO expert. LoL


Title: Re: Difference between Security and Utility token
Post by: cryptorampage963 on August 05, 2018, 01:46:42 PM
"Utility tokens rules the cryptocurrency market acquiring most of the market
share as compared to Security Tokens, therefore there is a lot of room for
security tokens to grow.
"


Title: Re: Difference between Security and Utility token
Post by: cryptoking963 on August 05, 2018, 02:05:58 PM
"Utility token basically functions as an access to a particular product or services.
It's simply a role for a particular project or company. It can equally be seen as a
currency for a particular platform. Utility Tokens are not formed of investment, the
value increases or decreases depending on the demand or use of the system.
Security Tokens, on the other hand, entitles ownership rights to a company. It a
real investment backed up by a real product or asset. Security Tokens are
equivalent to conventional initial public offerings(IPO)."


Title: Re: Difference between Security and Utility token
Post by: BlackandRed654 on August 05, 2018, 02:17:08 PM
Two reasons to develop tokens are as security tokens or utility tokens. Security tokens used by the the investors to invest in new start-up share.On the other hand utility tokens are not for investments and also known as app tokens.


Title: Re: Difference between Security and Utility token
Post by: rayk on August 05, 2018, 02:23:27 PM
By obtaining a security token you have a share in the company but utility tokens do not give any financial right to you, they are almost unrelated to project in such senses.