Tokens | Security Tokens vs Utility Tokens
SECURITY TOKENS
Security tokens are crypto tokens issued to investors in exchanged with there money during the ICO event. This token is designed for pure investment. In can pay a dividend, share profits and expect returns. Allowing its investor to take part in the decision making of the ICO. It is governed by the security and regulation of the federal government and failure to meet and comply with this regulation will subject to a costly penalty or closure of the project. This kind of token is prohibited in some countries.
UTILITY TOKENS
It is more called as an App Coin or App Token it has a utility purpose inside the blockchain that a certain ICO team created. the token is properly instructed to gain only a portion access to a company`s future products or services. This token is exempted from the federal laws governing securities.
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