Hey all, I am fairly new to crypto and am not really understanding the difference between a utility and security token. I feel like utility token are really cool because you can buy real products with it? Does anyone know of any decentralized ICO's that use utility tokens for real products?
Most tokens allow you to buy services (less often products) or buy stuff with discount. These are utility tokens. Example: Quantstamp allows you to buy code safety audits. Other tokens give some dividends, like Astro or Ice Rock Mining.
Although there is a formal "test" to determine is anything is a security (Howei test), in general you can assume that tokens that pay you a return or a dividend or a share of profit are securities.
Fuzex, Node, WAX, Flip Game, ... and many other allow you to buy products with tokens.