Token is something that serves as an expression to something else,But in the crypto world we can define token as a virtual currency that represents a tradable asset that resides in it own blockchain and allow users to use it for investment or economic benefits.A told is not limited to a particular role rather it can be used for different roles depending on its native ecosystem. It is usually given to their company during a sale called the Initial Coin Offering (ICO) which is used for raising funds.

In the initial Offering Coin (ICO), the network offers different forms of token depending on the network set up and also the application of the network.These toke are: Security token, utility token and equity token.

Now this will take me to the answer if the homework task by professor @pelon53

WHAT IS SECURITY TOKEN?

Security token are token that represent tradable and financial assets.E.g:A share of a company.it is also a form of investment that pays dividends,shares profits or pay interest in the way that promises future profit.it has in form of increase level of security in the crypto world because it get authenticity of a person's identity through an electronic devices by keeping some personal record incase of any risk thay might come at the end.The security token is plugged through a system to grant access to a Network service.

Security token which services as a way of preventing dangers from our investment comes in different forms including, hardware token that contains chips,USB token that plug into USB ports and so on security token is issued by the security token service (STS) for the authenticity of an individual identity.

Due to the fact that they might have been some alternative before the arrival of security token,the security token had made his important know to people as it has restored the credibility due to the fact the there was lack of regulation for one of the token,(utility)but the security token has brought an idea of bringing the crypto space and the legacy finance space together.since it is regulations are high the chance of getting scam is slim which makes companies and investor to comply with the howey test

Howey test is the investment of dollars with a common enterprise with the expectation of profit derived from the effort of others.This test is refer to the U.S. supreme Court case to determine whether a transaction is qualified as an investment contract and would be considered a security or subject to disclosure.it was stated by W.J.Howey Co.

It turns out that the Howey test is not only the test that can be used in the Court to determine whether an investment is a security or not because it was later known that the court developed a "Family Resemblance Test" to determine if a contract has a family Resemblance to other investments

Examples of security token include; sia funds,Bcap(block chain capital), science blockchain etc.

In this example of security token like Bcap which stand for block chain capital. One of the form of security token and you can see the chart below

The mode of investment represents a tradable and financial asset or that involve issuance of security token is known as security token offering (STO)

WHAT IS UTILITY TOKEN

Utility token is a token that helping in capitalizing or funding projects for start up company or individuals.it involves promising the future use of a product or service and think of them like a gateway token.It can also be defined as the no right to the usage of a network by giving the holders,it also give rights to the holders to take over the network by voting.it is an opposite of security token because it is not regulated at all which has made it risky for users since it is very hard to createba regulation for ICO.

If there is any problem that occurs like scammers have been known for creating bogus ICO for the aim making money from it and leave.

In crypto world today, the utility token is related with the development call and the calls,ICO which is a means by which the crypto project obtain their funds essential for it development.ICO were precisely offering token of their project in exchange for other crypto currency or Fiat currency that serves a s a final development.

There is no relationship between the current state of the validation of the company and it value.

Some examples of utility token are;Basic Attention Token(BAT)

(it is used as a means of payment for content creator and publisher)GOLEM(GNT)(it is creation of an economic system that allow individual to rent the computing power available to them),Timicoin,Funfair and so onThe mode that helps in capitalizing and fund a project with an issuance of utility token is known as Utility Token Offering (UTO).

Bat token as we all know is a token that us used as a means of payment or can also be used as a means for rewarding content creator.

This is the chart graph below which was taken from coinmarketcap

WHAT IS EQUITY TOKEN?

Equity token is a security token which involves start up that are possessing some form of ownership in their investment or company..They are stocks that are offered by start-up companies and individual who are given a part ownership of the block chain and also they are given voting rights over the block chain.Thay are type of security token to investors as they take part in the growth of the block chain network and they make a lot of profit depending on the performance in the market.

They have high stability of becoming a fundamental part of the future initial coin offerings (ICOs) as they have the ability to offer a financial market to their start up companies and individual.Though the issue which still remains a problem for equity is for it to be regulated which has not been finalise through a bill passed by Delaware which allows companies to have the man of their stakeholders stored in the Blockchain.

Examples include:Nefund,The Elephant Private equity coin,BFtoken,the dao and so on.

Looking at the example of Dao as an example, it helps in serving as the governance token which is of the Dao ecosystem built on ethereum and many more. You can see more details about it on coinmarketcap. This is the chart graph below

The mode which involves starting up an investment with the issuance of equity token is known as Equity Token Offering (ETO).

All these token have an objective of promoting company one way or the other through capitalizing or promising them profit in the future, Though they might be difference and the risk in one might be greater than the other but nevertheless they are all trying to bring development to the digital world and make it easy for their investors or companies

@pelon53