Types of Token In Initial Coin Offering (ICO)

in cryprocurrency •  2 months ago

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Since we know that future depends on Tokenization, the vast majority of the investors and ICO are looking forward to different types of Token. A token is fundamentally a smart contract based on Cryptocurrencies, for example, Etherium, and does not depend on mining, gold price and so forth., and rather, has its own various characteristics.

Following are the different types of ICO Tokens.

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Types of ICO Tokens


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Security Tokens.png

1. The Security Token

The token you buy hoping to receive something in return is called Security Token. There are numerous ways you can invest into a Security Token; two popular ways are ICO and Crowdsale.

In addition, you can have different features in a Security Token, for example, Revenue Shares, Dividend, and Profit Sharing and so on. Being untradeable in nature is one of its drawbacks. Which is basically because of the absence of regulated exchanges; however, in the upcoming years we may get to see a few regulated exchanges that thusly would benefit the Security Token itself and as well the Blockchain industry.

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Currency Tokens.png

2. The Currency Token

Currency Tokens are what we call real digital currencies. They are tradeable in nature however not founded on Assets and are generally alluded to Value Tokens. Like Fiat currency, the Currency Tokens could likewise be utilized for every day online purchasing, yet dissimilar to Fiat currency standards, the Currency Tokens are decentralized in nature and have a tendency to wipe out the association of any third party, for example, banks.

They are popular virtual tokens and catch the vast majority of the crypto market. The most mainstream Currency Token is Bitcoin however; there are alternatives as well, such as altcoins that exhibit distinctive characteristics from Bitcoin.

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Reward Tokens.png

3. The Reward Token

The Reward Token is the sign of showing loyalty to the users. The industry is quickly developing at the rate of 30% annually, and it is said that around 85% of the people are a part of at least one loyalty program.

The most prominent Blockchain platform where users are rewarded includes Steemit. The platform rewards you in many ways, such as by giving Steem Power and Steem Credit.

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Asset Tokens.png

4. The Asset Token

Also called Asset-Backed token, Asset token is considered as a substitute for physical assets having equal value. They are yet to be popular in the Blockchain space because of unregulated exchanges, however in the upcoming days, we may see some regulations in exchanges dealing with Tokens.

In addition, the Asset Tokens are generally viewed as the safest and secure investment that give extraordinary incentive to its investors.

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Equity Tokens.png

5. Equity Token

The Equity tokens are more similar to stocks in the financial market. Nevertheless, what separates them is their concept of being accessible to each potential entity. They are effectively available to all the potential investors and startups.

If you are a startup looking to raise funds using ICO, then Equity-token is what you will probably need. You can easily distribute equity through Equity tokens without any hassle.

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Utility Tokens.png

6. Utility Tokens

These tokens are the most secure among the various ICO tokens. The majority of the ICOs and exchanges are backing Utility Tokens because of its security. The sole purpose behind Utility Tokens is to help you get access to the company’s products and services.

The Utility Tokens are not for investment yet investors still buy them with the hope that they will increase in value.

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At the last, let us know in the comment section how useful the article is, and whether we could make you completely understand each type of ICO. Also, you can tell us what topic you might want us to feature in our next blog post.


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Hello friend how are you, very good post quite informative, the world of the token is broad and in your post we simplify them enough, I only have one question, correct me if I'm wrong, starting telling us that it does not depend on mining, but if they are in the blockchain of eth, implicitly require eth mining which is what keeps the network running

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Hello friend how are you, very good post quite informative, the world of the token is broad and in your post we simplify them enough

I am fine my friend, hope you are good too @hendersonp.

I only have one question, correct me if I'm wrong, starting telling us that it does not depend on mining, but if they are in the blockchain of eth, implicitly require eth mining which is what keeps the network running

dear friend I honestly don't get your question. Will you explain little more

I think this post is very brief and simple for anyone to get the differences between the tokens even though. Reward token and currency tokens are cool for me

Have a nice day my friend!

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Thank You @ajongcrypto for your kind support and comment.

This post explain what ICO is all about

Posted using Partiko Android

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Thank You @dannybobo for your kind support.

Great informative article my friend @flash07. It's always good to to read your article my friend ☺

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Thank You @pratik99 for your kind support and comment.

It's really nice info about all type ico. I joined so many airdrops and listen about ico but don't had idea about ico. This is really nice info.

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I am happy that article helped you @rosy1606.
Thank You for your kind support.

You got a 58.33% upvote from @stef courtesy of @flash07!

Great article well explained
Keep posting like this useful article

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Great article well
Explained Keep posting like this
Useful article

                 - ajsharma333


I'm a bot. I detect haiku.

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Thank you for your kind support @ajsharma333.

Hello great article flash07 . im following your articles evry time and learn more thins about crypto. thank you.

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@crypbtc I am glad that you are following every article and it's informative for you my friend.

Thank You for your kind comment and support.

Goid job ...
Unformative post

Posted using Partiko Android

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Thank you for your kind support @nick750566.

I'll try out my knowledge by identifying some tokens, hopefully will get it right ! A straightforward and really informative piece, to say the least . Great job, my friend

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I'll try out my knowledge by identifying some tokens, hopefully will get it right !

You will do it for sure my friend :)

A straightforward and really informative piece, to say the least . Great job, my friend

Thank You for continuous support my friend.

I think you have extreme level of knowledge about ico's
not saying by just this post but you had your earlier posts which decribe your knowledge about crypto's

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I think you have extreme level of knowledge about ico's
not saying by just this post but you had your earlier posts which decribe your knowledge about crypto's

Thank You for your continuous support my friend @jigsindian.

Another great effort in categorising the crypto space! What i don't get is the difference between security and equity tokens, to me it sounds like they are the same thing.

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This may help you to understand this better my friend.

Security tokens bridge the gap between the traditional financial sector and the blockchain framework; it’s one of the reasons banks have initiated the integrated Blockchain frameworks in their system. Issuing security tokens allows investors to raise funds through a thoroughly regulated digital share of its equity, asset or part of the revenue.


The key difference between Security Token and Equity Token is that in the security token, an asset like real estate, gold etc. are used as collateral. However, in the case of Equity tokens, the shares of the company are diluted into tokens.

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this post all about ICO . Keep posting like this useful article

Beginner like me who only knows that there is something about Blockchain, cryptocurrency - kind of have basic knowledge. About ICO and Tokens my knowledge was near to zero "0". But I think I can identify Type of ICO & tokens. Also have pretty good knowledge on the subject and one of the main reason is you my friend @flash07. I love new technology but I think I always fail to find best source. But here I found you the best source for getting this kind of knowledge.

Thank You very much once again for providing us great information continuously and supporting me here and on steemunt.

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Beginner like me who only knows that there is something about Blockchain, cryptocurrency - kind of have basic knowledge. About ICO and Tokens my knowledge was near to zero "0". But I think I can identify Type of ICO & tokens. Also have pretty good knowledge on the subject and one of the main reason is you my friend @flash07. I love new technology but I think I always fail to find best source. But here I found you the best source for getting this kind of knowledge.

Thank you for such a great comment my friend @techbuzz07. I think this is the great comment and appreciation I ever get. It feels good that you think my post are informative and you are getting knowlege from it. I see you are posting only on steemhunt till now and doing curation here on steemit. Hope I will some post here on steemit too.

Thanks again for your continuous support @techbuzz07.

Hmm! Very educative of you.
You must be academic instructor or you are born like that lol. That is crypto-instructive.
@crypto.poitr, thanks for sharing...
@flash07... Thanks for writing.
Curated and shared.
@jodekss

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You must be academic instructor or you are born like that lol. That is crypto-instructive.

hehe I was actually looking for new job I think I should I apply as instructor ;)

Thank You for your kind support my friend @jodekss.

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Lol. You are welcome friend.

hi @flash07

are those official categories? I thought that officially we only have utility tokens or security tokens

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@crypto.piotr There were my friend but there are more now. I think this is great as is makes it easier for us to look in to it and too see which is best for us to invest and all.

Thank You for your continuous support my friend..

I think, that in general, the public needs a better understanding of different token types. Non-crypto public would probably look better upon our industry if they simply new that not all tokens are the same or even the dif between a token and coin (blockchain). Personally, I believe the biggest impact of crypto will be promoting a digital ASSET driven economy. Thanks for he post.

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I think, that in general, the public needs a better understanding of different token types. Non-crypto public would probably look better upon our industry if they simply new that not all tokens are the same or even the dif between a token and coin (blockchain).

Thank You for sharing your views with us my friend.

Personally, I believe the biggest impact of crypto will be promoting a digital ASSET driven economy. Thanks for he post.

Thank You for your kind support my friend @machnbirdsparo.

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I agree with you @machinbirdsparo

After all it's all about building awarness and understanding. And @flash07 is doing great job so far. Im really happy that we all got to know him better. Such a valuable publisher isn't easy to find.

Yours
Piotr

Hello friend @ flash07 excellent presentation, obviously you know a lot with everything related to blockchain, icos and cryptocurrencies
Stop by here to say hello and wish you a prosperous week

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Hello friend @ flash07 excellent presentation, obviously you know a lot with everything related to blockchain, icos and cryptocurrencies

Dear friend good to know you liked the article. Thank you for such a kind words and your kind support my friend @jlufer.

Stop by here to say hello and wish you a prosperous week

Have a great week to you too my friend.

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Excellent explanation about the different types of token in ICOs, kudos for the great article mate!

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Thank You for your kind support my friend @dedicatedguy.

@flash07... The ICOs master.. Lols... Your write up about ICOs is always mind blowing and very explicit. I have actually learnt alot from your write up and I must say you've done justice to the topic at hand.

The token you buy hoping to receive something in return is called Security Token.

Most cryptos related project and blockchain do love to engage in this type of ICOs. It used to be a great advantage for the investors most especially when such token makes it to the market cap.

I will love to ask if there is a way of knowing Tokens that will have more value in the future.. What can you say about this?

I understood the concept of reward token, asset token, utility token and the currency token.

But what type of token can we categorize the tokens we earn from airdrops?

Thanks for sharing this great post with love from@hardaeborla in courtesy of @crypto.piotr 😀🙌💗

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@flash07... The ICOs master.. Lols... Your write up about ICOs is always mind blowing and very explicit. I have actually learnt alot from your write up and I must say you've done justice to the topic at hand.

Thank you for such a nice comment and your support my friend.

Most cryptos related project and blockchain do love to engage in this type of ICOs. It used to be a great advantage for the investors most especially when such token makes it to the market cap.

Yes it is my friend.

I will love to ask if there is a way of knowing Tokens that will have more value in the future.. What can you say about this?

Yes there is and there is not - based on recent events. Generally I say that go through the project idea, check the team, their progress and all but I show events where we see idea is great, team is well known too and they are doing great progress and some how we check and find out they just vanished with the money they have got. We can't say for sure but do research from your side, don't left one point and then invest if your guts say so, so there will be no any kind of disappointment :)

But what type of token can we categorize the tokens we earn from airdrops?

No my friend I don't think so. Because airdrop can be done by any kind of tokens.

Thanks for sharing this great post with love from@hardaeborla in courtesy of @crypto.piotr 😀🙌💗

Thank You for your continuous support @hardaeborla & @crypto.piotr.

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Thank you for the explicit answer

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I am happy that you found my answer informative :)

This is my latest post hope you like it my friend:
https://steemit.com/cryptocurrency/@flash07/w12-how-about-investment-without-trust

The best thing about @ flash07 articles is that they short precise and packed up with a massive stream of information that births huge knowledge.

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The best thing about @ flash07 articles is that they short precise and packed up with a massive stream of information that births huge knowledge.

I always waiting for your comments on my article because you know the art of commenting and encouraging people for their work @maxiemoses-eu .

Thank you very much for your kind support my friend.

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Hehehehe........

I always waiting for your comments on my article because you know the art of commenting and encouraging people for their work @maxiemoses-eu .

Your words are so nicely suited........ I think I should have you thanked.

I may not know as much about ICOs as @flash07 does but, there one thing, we can all agree on...............
..............just as @flash07 said:

The most prominent Blockchain platform where users are rewarded includes Steemit. The platform rewards you in many ways, such as by giving Steem Power and Steem Credit.
·

I may not know as much about ICOs as @flash07 does but, there one thing, we can all agree on...............
..............just as @flash07 said

Thank You very much for such a nice comment and support my friend @maxiemoses-eu.

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you are welcome

I couldn't be more happier for your analysis. In all honesty I didn't have this kind of knowledge about ICOs before now. I use to lump them all together although I knew digital tokens are a thing but I kind of generalized them by lumping them all together. Now I know better. Nice work @flash07.

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I am happy that you found this article informative and helpful. Thank You for such a nice comment and your kind support my friend @davonicera.

waaaoooo did not know the amount of tokens that existed, much less its usefulness. Ayer I was using the Uphold option to recharge the balance with Security Token and I was wondering what that would be. Thank you for clarifying those doubts.

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I am happy that you found this article helpful my friend.

Thank You for your kind support @luiscalzadilla.