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RE: IS FUTURE OF ICO THREATENED BY SECURITY TOKENS? Share your view with us.

in #crypto6 years ago

Just a small observation…

If we define Security and Utility tokens like this:

Simply put, while both Security and utility token prices may fluctuate, the key difference is that Security tokens entitle the holder to ownership rights, while utility tokens function as coupons and do not provide holders with an ownership stake in a company’s platform or another asset.

…then Bitcoin would go into Utility category, despite it is the best Security you can imagine. On the other side, defining Security tokens like this:

Security tokens have to be backed by a tangible asset, like a company’s profits or shares or any financial tradeable asset.

…makes them just as fraudulent as fiat money, imposing a mediator again.

Those definitions are due for a major overhaul :)