Bitcoin Forum

They both come with their own sets of pros and cons. Which one do you support?

If I have to choose, I prefer utility tokens because they have less problems for KYC and taxation generally. Security tokens have more regulation problems in many countries.

I know security tokens require more regulation and taxation etc but if you ask me im in favor of security tokens, it is not just for me, to move forward and adoption and also for competing the stocks, we need to get uniform regulation for security tokens globally and then even traditional businesses can tokenize their business for funding and everyone can become share holder.

Security tokens, because they have much more prospects today: SEC is interested in cryptocurrencies, huge investment funds with REAL coins, not futures (BAKKT), will soon appear. IMHO, utility tokens will have to become partly security.
Without this, it will sink into oblivion.

Utility tokens can be just one directional area and might not really be a considering factor with sec but security tokens can be a factor. And more investment seem to be on that and the exchanges.

Security tokens tend to attract the attention of the SEC by way of regulations. Personally, I'm for securities as it gives token holders a chance of being shareholders of the company/project rather than utility tokens that makes you just a mere holder.

Security Token this is the future, Utility Token this past and present. Ico 90% scam, therefore, the market will change.

My opinion: not always easy to tell the difference between these two types of tokens for a beginner, but in short, a utility token offers the user to use products or services through this token, while a security token only entitles one part of the company, much like stock market shares.

If you do not know which category your token is in, just do Howey test (https://consumer.findlaw.com/securities-law/what-is-the-howey-test.html).

So basically you ask which one do you prefer in real world: property or stocks
those two are alike as much as your OP question imho :)

If I have to choose one,I prefer utility tokens. Because they have less problems. I think that's the smart way to handle things.

i think we will see a lot of security tokens on the market and their behavior, i can not tell now which is better but also we already see that utility tokens are not using as it was expected, it using only for speculations coz speculative part of the market is still the biggest one today.

Both of the tokens have some certain and unique charecteristics. Those who value security and profit should go for Security tokens. On the other hand, those who like less regulation and less taxation should go for Utility tokens.

Security tokens would be common in crypto one day upon the implementation of regulation for the cryptocurrencies. When this happen its easier for anyone to invest and they wouldn't have to worry if they get scammed like what is happening these days. Utility tokens may be a thing of the past once newer platforms besides Ethereum is going to be widely used after all we all want lesser transaction fee if not free.

So far iron and steel are commodities with smooth trading, as far Blockchain is concerned it is still in it's earlly phases and it'll take time before we know for sure what commodities are reliable trading

Based on the needs of the user they may choose depending on their needs if Utility or Security they value as it differs from person to person.

I prefer Utility token not only it has less issue on ID verification and taxation, but in my opinion Utility token has a real use case, and it will make utility has higher demand than Security token. But I also think that Security token promise more profit than Utility token.

I would choose utility token because it provide us future access to their service or products. and also its less requiring KYC which most of hates it.

with the use on returns with work as appealing details with reference on showing of notable with value on confinement the decision to leads as investors to put with trust as expending spares on possession to enter market on expectation as collecting with concrete of consequence as developer to run of work on table with the complex of details with business intelligence.

Security and utility token are very similar in characteristics. Utility token offers future access to the company's service and has less regulations. Security token is a better investment but has more regulations and taxes.

I choose definetly utility tokens because i dont like regulations. Crypto is freedom and coins with regulations is not for crypto space in my opinion.
and surely security tokens will have some regulatory problems in different countries which have dont clear regulations yet about crypto.

I think another reason to support utility tokens is that they have actual use cases and can be a part of financial operations on the platform, just as I think it was meant to be. Security tokens, on the other hands, are more like valuable assets rather than coins for payments. I believe they generally contribute to wrong impression about cryptocurrencies and treating them not as was supposed to. KYC is important, though, whether we are talking about utility or security tokens, because something has to be done with the variety of options to do money laundering on the crypto market. In general, these types of tokens are just too different and IMO should be regulated and considered separately, since nothing but blockchain technology unites them.

Both security token and utility token has merits and demerits. But it seems that security token is currently the one that has more potential to move forward.

I would go with security tokens due to structured offerings. It stretches a promising wide variety of actions. Security token has been manifest as the future dominant power of ICOs by many experts.

Depends what you mean by support? To invest in, Security should be the way to go, as most utility tokens will be engineered to hold a stable value. IMHO, no more Ethereum like runs, more like Sia that will stay around $0.01 forever.

I created a SECURITY token that is backed by profits from mining, and my early investors (from June!) are looking at 10x today. take a look at what I am doing, interesting idea how to reward investors. Buy back and burn.

https://bitcointalk.org/index.php?topic=4627045.0.

Tomasz

I agree with you bro, but why are most people don't like securities token? Why most startup companies don't want their token to be a security token? I find this SEC regulation an advantage for investors because it is secure to invest but, does it affect the concept of decentralization?

I prefer Security token to utility token. Security token receive more scrutiny than utility token and this mean the project must adhere strictly to security law, especially Sec. This give more confidence about the project and also make the project to be less riskier than utility token based projects.

Comparing to utility token,security token has a much better future.It has the force to move forward and also become stronger in the future.

I think more for the first time, after becoming, we can use the coin comfortably and don't need to worry. If prioritizing its use without security, of course it is very scary, so of course both are equally important

What problems?

In my opinion security token much better, because with full regulation can be avoid fraud in this crypto market, there are some ICO fraud because they not really comply with regulation, and security token also give more safe investment for investor.

Very true. It's a good compromise to the world of traditional investing and the decentralized form we saw with ICO's. Security tokens are a good balance between the two, and also drive further innovation in tech.

I would definitely go with security tokens, because they comply with regulators and it validates the project is legit. Although security tokens can have a very tough process unlike utility tokens which don't have a very strict regulation. But it makes utility token much riskier to invest.

I will prefer utility token thou security token is more at a safer sides but utility token is less stressful and cost less unlike security token, security token is very risky because during kyc personal information are released but as time goes on it may be use to steal or commit crimes.

Utility tokens strongly discredit ICO as an investment tool, because these tokens immediately fall in price after listing, they are very rarely used in the future, and it makes no sense to keep them for a long time. My Choice - Security Tokens.

I would choose utility tokens, I cannot say exactly for what reason, there is probably more an intuitive choice, because there is simply nothing else, and of course security is important, but the work seems more important to me.

I prefer both. Having only utility tokens but  the next big trend will be security tokens. Polymath is doing for securities tokens what ETH did for utility tokens.

I would have to choose a security token, now in our present world, security is a big issue and it seems like everything that we are doing is being tracked and monitored so now we have to make sure that we protect ourselves. This is why I believe that security tokens are going to be the next big thing in the cryptocurrency world