Utility Tokens vs. Security Tokens
First of all, we have to over view the Idea and Revolution behind the (ICO) i.e Initial Coin Offering , which derived basically from (IPO) i.e Initial Public Offering ( which is known to the stakes market ) , such an brilliant idea that saved alot of time and effort and headache to the companies and startups and the most important they almost have no obligations towards the purchaser , only a promise that this Tokens can be used later on , in (The Future use there services using this Tokens ) and this is exactly what meant by Utility Tokens which is boomed in 2017 collecting more than 3$ Billion
and to make it simple lets explain about them :
1- Utility Token :
which is almost 99% of today's tokens are , as said earlier its only used to buy a service that has been promised by the start-up or the project to provide , if for any reason this company fails to provide that kind of services then unfortunately your tokens will have no value at all , and most of the token values has been gaining there value from a pure speculative point of view ((mostly )) and at some point the demand will increase as well as the value of cores .
2- Security tokens :
Simply ( in my opinion ) it's the future , it's a perfect mix between the new revolution tech. IOV ( Internet Of Value , i.e Crypto-currency ) - later on i will wright about this specific terms - And the old style Stakes which is have the real value (over the Utility tokens ) , and let's try to briefly mention why i believe so :
A- It's exactly same if you have a company shares (( you simply one of the owners ))
B- Some will give you the right to vote for major milestones in the company.
C- and of course you will gain from the company revenue (by getting shares )
D- and the most important thing that your token value will grow together with the company value (of course you have to chose wisely )
BUT
In Fact, the Security Tokens to gain tension for the real money and to attract the investors need to over come some obstacles .
First of all a secure platforms has to be built to reduce the cyber crimes, while in the same time the crypto-currency it self has to find its way out and to be fairly regulated from the authorities, which i believe Will happen SOONER OR LATER.
I believe (( POLYMATH NETWORK )) is one of the leading project which is trying to bring Security tokens to the mass , they really have all what it takes to do this Job .
but i have some concerns regarding there (utility token) Poly , as the use cases for the coin will not gain the same value as the company it self will grow , i believe the project team has a brilliant minds which can modify the use-cases to make it more valuable which will serve both of us the token holders (supporter ) as well as the project in the long term point of view ,, hope this advice could reach to the right person and to be considered.
This is a good comparison! I like how investors opinion matters in the security tokens, this will make a lot of difference in the future of cryptocurrencies. Definitely i will consider this in the future.
When I'm thinking regarding my investment ( and we all should ) , im looking into the investment that will matter in the future , as current situation is changing ( and it will keep changing ) , always look for the ground-shaking new disruptive technologies that will attract fresh investment to inter the market, that basically will have a huge space to grow ( i mean in value ) and thats is the one that deserve to buy and hold for a decent time , and of corse to be happy when the times come ,,, and the idea find its way to grow and catch the proper attention .
Good luck
👍
So nice
It was very helpful, thank you :)