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We at Blockchain Developments offers 4 types of ICO Tokens that include Utility token, Equity Token, Reputation Token, and Asset Token. Each token demands different regulations. Blockchain Developments is a full-service consulting firm dealing in Security Token Offerings (STOs), Initial Coin Offerings (ICOs) for cutting-edge businesses and services.
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4 Types of ICO Tokens to Know About blockchaindevelopments.io
Topics to Cover • What is ico token? • The Benefits of an ICO • 4 Types of ICO Tokens • Our Advantage blockchaindevelopments.io
What is ICO Token? An initial coin offering (ICO) or initial currency offering is a type of funding using cryptocurrencies. In an ICO, a quantity of cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum. blockchaindevelopments.io
The Benefits of an ICO Token Liquidity Decentralization Openness Variation in Cost Invest Cryptocurrency Profits Lower Competition blockchaindevelopments.io
4 Types of ICO Tokens 1) Utility Tokens 2) Equity Tokens 3) Reputation/Reward Tokens 4) Asset Tokens blockchaindevelopments.io
1. Utility Tokens Utility tokens are cryptocurrencies which able the holder to use a particular product, service or a platform. These are very common in the Blockchain market. To make it simpler, it is the digital currency to purchase a product or use an Internet-based service provided by Developer Company of that cryptocurrency. Utility tokens are mostly known as app coin. These are distributed through ICO project launching. By this, the company aims to raise crowd-funds and users aim at acquiring of product or service provided by the company. The supplies of utility tokens are controlled by the developer or the company responsible so the demand of token may increase provided that demand for underlying product or service. blockchaindevelopments.io
2.Equity Tokens Equity tokens are very similar in nature with an IPO. It provides ownership to underlying platform, product or service developed by the company or an entrepreneur. Equity tokens are as well distributed through ICO launch but to a specific group of investors. These investors provide ample funds to startups or to grow business. In return, pieces of rights to ownership are provided. Through equity tokens, token holders are able to participate in organizational decision making but unlike traditional IPOs where manipulation in voting is possible, by using Blockchain development voting is untainted. Due to these advantages, it is very likely that equity tokens are on embark to create Blockchain financial market replacing traditional methods to raise funds. blockchaindevelopments.io
3. Asset Tokens The third type of classification is asset token. This less popular token is backed by a physical asset such as Gold or a property. The fractional value of the token is based on the value of a physical asset’s price. Hence, the token is having similar prices as the physical asset. Also, similar prices of asset tokens are a reason for being less known and used. In the United States, these token are subject to SEC securities regulations. It involves the criteria to classify a token into a security or an investment. blockchaindevelopments.io
4.Reputation/Reward Tokens The reputation or reward tokens are given a mark of trust on that individual. Its purpose is to give recognition to that individual for work he did in a particular Blockchain. These tokens are usually not tradable in nature and liquidity is unlike other types of ICO tokens. The reason being identifying the right value of reward tokens are hard to maintain. To be clearer, reward tokens can be compared to awards given for a profession like literature where the value of the award holder is considered immense. To understand ICO tokens better and easier, one can apply methods of traditional investment tools as the primary features of an investment do not change. Laws of demand and supply are applicable to all mentioned tokens, hence choosing wisely when putting forth your money for investment would be a great choice. blockchaindevelopments.io
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