205 Steem Dollars Writing Contest- My Entry
This is my entry for the sponsored writing contest organized by @monajam. You can find the contest here
Utility tokens grant holders an access to the company's products or services. They are not designed for investment thus are exempted from federal laws and regulations.Source
Utility tokens are also called user tokens or app coin. Basically, it represents future access to a company's services. They are not government operated.
Security Tokens, in contrast, are subject to federal rules and regulations. These tokens are designed for investment purpose and can be traded on exchanges for FIAT or other cryptos. The holders can also be entitled to company's dividends.Source
Security tokens on the other hand derives value from external tradeable assets. One significant advantage of the token is its ability to be used by company, to issue tokens which act as stock of a company's share. But that dream can only happen if you pass all the regulations and legal demands of the government.
But not all tokens are security ones. Two types of them are recognized — security and utility. Security tokens are designed to be the company’s share, while utility tokens represent access to company’s product or service, i.e. have practical use. Utility tokens are exempted from regulation and security laws.
Source
Utility tokens have a use case. Their demand most times depend on the kind of problem they solve. They are not really considered as investments. Security tokens are regulated by government, cheaper and easier.
The problem most businesses encounter, through the not so friendly procedure for launching token is quite exhausting. There are lots of requirements since it is government regulated. So to ensure each condition and legal requirement is met before launch, is quite a job.
MOBU is an ICO Blockchainplatform, designed for launching compliant tokens.this initiative connects approved entrepreneurs and investors, by eliminating the middleman.
Then, imagine if you as a developer could have all that problem solved, but this time, not by yourself. That is what [MOBU]((https://www.mobu.io/) is offering you.
What makes MODU Different?
Three major things.
- MODU restricts tokens to verified users.
- MODU introduces a new method of escrow services to ICOs
- MODU gives investors extra protecton.
The token sale is coming up,get yoursself prepared.
If you would like to know the reviews kn MODU, see below.
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Great piece of work, @t-flames
But I need to ask you some question?
So far it seem that MOBU is one of very few ICOs that are completly launched as security token. I wonder why. Wouldn't it be better to come up with some utility to their tokens and launch ICO as a utility token?
And also how will they maintan the price? Does MOBU offer Masternodes or POS to attract hodlers? If I cannot use those tokens and on top of that if there is no POS/masternodes introduced into their structure ... then what would make price go up or at least stay on stable level?
Upvote on the way! :D
Yours
Piotr
Great article, @t-flames!