This is my homework post for the
steemit-crypto-academy-season-2-week2-or-tokens-parte-1-by- @pelon53

HOMEWORK
You should do your own research and answer the following points in your own words.
1.- What is Security Token? And explain an example.
2.- What is Utility Token? And explain an example.
3.- What is Equity Token? And explain an example.

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A security token is a type of digital asset that is issued on top of a third-party blockchain network and derives its value from another external asset. Security tokens can represent both real-world material assets such as square meters of real estate or grams of gold, as well as non-material assets such as company shares. A security token offering is the method of creating security tokens. A security token offering (STO) is a type of crowdfunding in which a company sells tokenized securities. The concept of security token offerings is its distinguishing feature. When cryptocoins are used in ICOs and securities are used in IPOs, the STO is a hybrid of the two.

What is an STO?

Before we go further, we need to explain what STO is.

An STO is a method of selling security tokens to the general public without going through the lengthy and exhausting phase of an IPO. STOs do not have utility tokens, and anyone who participates is considered an investor. STOs was designed to comply with anti-money laundering regulations as well as securities laws.

EXAMPLE OF SECURITY TOKEN

tZERO

tZERO is a blockchain ecosystem and secondary market that focuses on historically illiquid investments. These investments, such as private equity in large private companies or commercial real estate, restrict investors' secondary liquidity options.
And if an investor locates a secondary trading site, the procedure is notoriously time-consuming and costly. Furthermore, as compared to conventional securities investments, this form of investment lacks transparency. Because of these factors, investors have lost faith in the industry. tZERO aims to reclaim this faith by using an open blockchain-based solution that prioritizes the needs of investors.

The aim of tZERO, according to Patrick Byrne, the company's founder and former CEO, was to enable users to bypass traditional institutional market frameworks. Instead, he developed a new type of trading platform based on cryptographically stable, decentralized ledgers that improved market integrity.

UTILITY TOKEN

A utility token is a blockchain-based asset that people purchase with the goal of using it in the future for something. A company creating an online game, for example, may issue utility tokens to finance the game's growth. After the game's creation is complete, token owners will be able to use their tokens to make in-game transactions. Gamers gain access to in-game tokens for potential use, while game developers gain access to capital to finance their project. Utility tokens, on the other hand, aren't just for buying things in a virtual world. They are a flexible and effective medium that can be used for a variety of purposes.

Utility tokens are useful because they have a wide range of applications and can fulfill a variety of functions. They can enable transparent blockchain transactions, allow payments for decentralized services, and fund project growth, among other things.

EXAMPLE OF UTILITY TOKEN [FUNFAIR]

The [[ERC20 Token Standard|ERC-20]] standard token FunFair (FUN) was created on the [[Ethereum]] framework. Because of this, it can use smart contracts and is simple to use for Ethereum users. While FunFair tokens are held anonymously, all transactions are recorded on the blockchain. FunFair coin can be monitored with Ethereum blockchain analysis solutions like Etherscan, which is vital for the platform's transparency.

FUN can be used for both in-app and in-game purchases, as well as to promote progress. On June 22, 2017, all of the FunFair tokens were produced. There are 11 billion FUN in total. The FunFair corporation owns a little more than 2,3 billion of them. FunFair's funds, on the other hand, are locked and will be released after an 18-month span following the token case.

The FunFair [[ICO]] took place from June 22 to June 23, 2017 and raised over $20 million USD. The price of a FUN token was about 0,007 USD.

FunFair does not have a dedicated wallet for its token. It can, however, be used with any wallet that follows the ERC-20 standard since it is an Ethereum-based token.
FunFair token is traded on the exchanges below:

• [[Binance]]
• LATOKEN
• ABCC
• Vebitcoin
• [[HitBTC]]
  and many others.

EQUITY TOKENS

An equity token is a type of security token that represents ownership in an underlying asset, usually a company's stock. The contract, like shares, specifies the terms and conditions that apply.

The holder of an equity token may be entitled to voting rights, dividends, or both. Contracts, including share certificates, can include subscription rights, valuation rights, and other entitlements.

Equities tokens, on the other hand, may simply monitor the value of traditional shares and replicate their success on the blockchain. Equity tokens function as derivatives in this situation and do not warrant their holders to stock ownership.

Equity tokens represent underlying assets in all situations, whether directly or indirectly. This distinguishes it from the majority of blockchain tokens or coins available to investors through initial coin offerings (ICOs) (ICOs). ICO tokens are normally utility tokens that are allowed to use a company's services and have a demand-based value. Companies sell equity tokens to investors through equity token offerings (ETOs)

EXAMPLE OF EQUITY TOKEN [NEUFUND]

The NEU cryptocurrency is a token that represents the expense of the blockchain-based Neufund crowdfunding platform. The platform is based on the Ethereum cryptocurrency blockchain, which means it employs smart contracts to ensure "equal conditions" in its operations.

Any business may tokenize its assets and issue tokens to draw additional investments using the Neufund platform. Companies' tokens would be known as Neufund Equity Token Offerings, or ETOs. ETO, on the other hand, is a hybrid investment model that combines the benefits of ICOs, IPOs, and venture capital. As a result, ETO is an excellent choice for establishing an ecosystem around a business or product.

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