Crypto Academy Season 2 Week2|| Homework post for (@pelon53)

This homework post is in response to the homework;
• What is security token? and explain Lan example
• what is utility token? and explain an example
• What is equity token? and explain an example

Given by:
Professor @pelon53

Security Token

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A token is regarded as a security if profit is expected by the effort which others put in.
A security token refer to an investment contract which can show legal possession of a digital or physical asset. The ownership of the security token must be ascertained from the blockchain.
After ownership verification, security token owners can:
• Present them as loan collateral
• Exchange their security token for various assets
• Keep them in various wallets

The original worth in security tokens Is dependent on the way it can totally redefine what its ownership means. For instance, instead of possessing a gold coin which could be really expensive and difficult to own, it has now been made obtainable for more people to possess some part of the gold coin.

Examples of security tokens are:
• SiaFund

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Siafund is a security token used on the Sia network for sharing revenue.For every transaction that is storage related, a 3.9-percentenge is distributed amongst the investors of the siafund. The Sia main team currently owns on estimate 85% of Siafunds.

The Utility Token

A utility token,is a unique token type which aids in funding a financial project for companies, or startups. The utility token is used as Babycoin in mass sales participation to raise capital for an already defined project. The utility tokens allow investors to possess future access to a projects services or product. It is a kind of access to a given value, but this is not always Obtained. The utility token is not regarded legally as investments, as many states do not have a means of regulating them.

Utility token is essential when a company needs to develop a coupon which can be traded later for access to its products or services. It is frequently used as a way to get sufficient funding for a project. For this reason, the utility token is usually circumscribed by so many speculation and hyep. It in turn makes it risky to venture into.

An example of utility token include;

Basic Attention Token (BAT):

This utility token is an ERC-20 token and it allows access to different BAT services. BAT functions majorly as an avenue of payment for publishers and content creators . The company that created BAT developed it does to create a blockchain platform which will aid contents creators from all fields to earn in a relative way.

Equity Token

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Equity tokens refer to stocks put up for sale by any project developer where companies or investors are rewarded with voting rights and partial shareholding of the Blockchain. Equity tokens bestow a kind of assurance lto investors as they contribute to the uprise of the Blockchain network and profits are distributed depending on how the project fares in the market.

Equity Tokens will be Obliged to become an important part of Initial Coin Offerings (ICOs) in the future since they give start-ups the ability to get into the financial markets which without this token would have been difficult.
Something to take to cognisance is the challenge facing the issuance of Equity Tokens which centers on the regulations wthat are yet to be concluded via a recent bill by Delaware permitting startups to store the profile names of their investors on the blockchain and authorise stock trading.which is blockchain based.

An example of an equity token include:

Slice RE Token

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This is a commercial and real estate investment network for investors across different borders. Slice gives premium liquidity to real estate equity projects and also developing an enticing portfolio magnifying tool for individuals /investors. On the slice platform, the slice RE token is used.

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