This is my entry for the sponsored writing contest organized by @monajam. You can find the contest Here

What is security token?

A security token is a versatile gadget that validates a man's character electronically by putting away a type of individual data. The proprietor connects the security token to a framework to concede access to a system benefit. Security tokens are issued by Security Token Services (STS), which validate the individual's character.

What is Mobu

Mobu is an imaginative insightful contract stage, whose principle objective is to close the current hole between the share trading system and the blockchain by permitting the consistent arrival of security tokens by genuine organizations.

Mobu's security token

Mobu is a thorough answer for dispatch security tokens, if an encryption token acquires its incentive from an outer and debatable resource, it is known as a security token, now these tokens start to frame some portion of a venture contract since the Investors expect their profit in the medium or long haul as profits, additionally in cooperation in incomes and cost increments.

They intend to present a "blocking" utility, as it were, for the Mobu tokens, for the specialist co-ops so that along these lines it is feasible for a supplier to be good on the stage. Note that each specialist co-op will present a specific number of Mobu tokens, however these won't be available as long as the organization remains a specialist organization in Mobu.

Difference between security token and utility token

The security tokens give you the privilege to partake in a legitimate element, to give capital, influence a benefit, to be a bank or loan specialist and the fundamental goal of the utility tokens is to encourage the buy procedure, be that as it may, without benefit

What is the option to protect the ico investors

Of course, as easy as it sounds, choosing a utility token over a ‘normal’ security token to avoid the SEC, there is more to it than that. Some companies will rely on the securities nature of their token, but the standing on it is, there are a lot of companies that won’t.

So MOBU should use utility over security

Contacts and more information

Website
Whitepaper
Medium
Twitter
LinkedIn
Mobu Team

@kibriakk

Source : https://mobu.io