Steemit Crypto Academy Season 2, Week 2 Homework Post For [@pelon53] || Tokens Part - I and Types Of Tokens; Security Token, Utility Token, Equity Tokens.
Hello, @everyone I hope you will be well and good. As we know that Season 2 is running in the Steemit Crypto Academy and the professors are providing their lectures to the students and the students are learning and as well earning from these lectures.
I have also attended the lecture of professor @pelon53 about the TOKENS as I have learned a lot of things from this lecture as I did not know about the difference between the TOKENS and the cryptocurrencies before attending this lecture. If you also want to learn and earn then do not waste your time and join the class.
As I have to talk about the different types of tokens but before that, I want to describe the term TOKEN. Tokens are those assets that are specially designed for a specific platform or project. That specific platform or project is run by the tokens produced. Because they give tokens to their workers as well as investors in that project. But these are not legal and these cannot be used as the common currencies which circulate visibly not virtually.
The tokens are working in the world for long years but the miners of the 19th century mined these tokens and they were able to buy different products from the mining companies.
Today tokens are being used everywhere even on occasions and these tokens have their own specific values which the players have to pay, but the tokens remain the same, and their value is paid which is specified for each token. But by using these tokens you cannot use anything elsewhere in the market.
As we know that tokens are run under smart contracts, and these use the already existing blockchains to be run because creating their own blockchain is hard for them and difficult as well as costly.
1.- What is Security Token? And explain an example.
Security Token
Security tokens are those tokens by which we can get our share in real estate or in any other real things which we can see which are not digital. These are not used in virtual projects but these are based on real and apparent projects. These are against the Initial Coin Offerings (ICOs). These security tokens represent real-life products for example grams of Gold or any part of the real estate. But indeed these tokens also represent the virtual shares such as the share of the company or any project.
Security Token Offerings (STOs)
Just like the other tokens which are distributed by the Initial Coin Offerings (ICOs) the security tokens are also distributed by the sales but these sales are known as the Security Token Offerings (STOs). The companies make their security tokens and then to raise funds they launch STOs. The investors looking for the investment and to raise some profit approach these STOs and get through their rules and regulations and then they invest in them and get the share of the company.
It is a combination of both the Initial Coin Offerings (ICOs) and the Initial Public Offerings (IPOs) as it allows its investors to get a share in the real-life things such as in any real estate, as well as in the virtual things just like the share in the company.
Benefits Of Security Tokens
The benefits of the security tokens are given below:
- It is easy to developed security tokens and to run them.
- There is a lot of transparency because these are run by complete security rules and regulations.
- Security tokens are so safe as these tokens are free from frauds.
- The transactions of the security tokens are much faster than the other classical tokens.
Example of Security Tokens (PolyMath)
At present there a lot of security tokens are running but I am going to explain Polymath. Polymath is a security token. Polymath uses ST-20 token to ensure the acceptance of the rules and regulations of the government. It is an Ethereum based platform and it was created through the Proof of Stake (PorS).
As because of the frauds with other tokens due to the fake ICOs it was introduced in the market and it got the trust of the people. As polymath is running on blockchain technology and it has 4 steps in the blockchain which are; Protocol, Application, Legal, and Exchange.
.## Current Price
According to the coinmarketcap, it is currently trading at the price of $0.3768 and it is following the downtrend. The price charts are given below so that we can analyze the price completely.
According to Coinmarketcap Some of the important details of Polymath (POLY) are given below:
| Polymath (POLY) | Key Information |
|---|---|
| Market Rank | #188 |
| Market Cap | $230,834,081 |
| Fully Diluted Market Cap | $376,837,590 |
| Volume | $4,676,986 |
| Circulating Supply | 610,331,538 POLY |
| Social Media | https://blog.polymath.network/ |
| __ | https://twitter.com/polymathnetwork |
| __ | https://reddit.com/r/polymathnetwork |
| __ | https://t.me/PolymathNetwork |
2.-What is Utility Token? And explain an example.
Utility Token
Utility tokens are those tokens that are based on the other 3rd party blockchains and do not have their own blockchain. These are most likely to the crypto coins as they work with their own special properties and have their definite use. Most of the utility tokens built on the Ethereum blockchain but there are also many tokens that use other blockchains to make their tokens unique.
We can also define the utility tokens like the tokens which are used to fund any network or project which is new by the ICOs (Initial Coin Offerings). Investors approach these ICOS and in this way, the newly launched project is funded by the investors who buy the utility tokens. But it is not the hard and fast rule that the utility tokens will always use the ICOs(initial coin offerings).
How Utility Tokens Work?
Firstly the company produces a specific amount of the utility tokens and then the company makes some policies and terms and conditions regarding the utility token before the launch of the utility token in the market.
The company allows its users some certain rights that they can do with the tokens. For example, the owners can access specific portions of the websites. The holders can also make the system popular by advertising that coin. The holders have the right to accept or reject the purposes of the website means to say proposals of the company by voting, as the holders have the right to do that.
Benefits Of Utility Tokens
Some of the important and common benefits of the utility tokens are given below:
- These can be used to build a new project.
- These can be sued to fund a new project.
- These may be useful for the investors to make huge profits.
- Utility tokens give you many rights regarding the project and the company.
- If you hold utility tokens you are just like the partner of the company and you can get many prizes by contributing company as these companies offer those who have invested in their projects.
Example Of Utility Token
In the world of cryptocurrency many coins, as well as tokens, are launching day by day. And there are a lot of utility tokens that are running and funding their network with huge investment. I have chosen Basic Attention Token (BAT) to explain as an example of the utility token.
Basic Attention Token (BAT), A Utility Token
I think every blogger should know about the Basic Attention Token (BAT) but no everyone knows that it is a utility token.
Basic Attention Token (BAT) is an Ethereum based token of the ERC-20 standard. It has become very famous all over the world as it was specially designed for the Brave Browser. This browser rewards your search engine activities by showing you different ads according to your interest and this brave browser uses Basic Attention Token (BAT) to reward your activities.
So if you want to earn a utility token that has already been launched then you can download brave browser which rewards your searching activities in the form of the utility token BAT. It is the easiest way to earn money from the utility tokens by just using a browser normally and by seeing some ads as we usually see in any browser as a necessary part.
Current Price
According to the coinmarketcap, it is currently trading at the price of $1.28 and the price charts are given below so that we can analyze the price completely.
According to Coinmarketcap Some of the important details of ATLANT(ATL) are given below:
| ATLANT(ATL) | Key Information |
|---|---|
| Market Rank | #64 |
| Market Cap | $1,903,317,386 |
| Fully Diluted Market Cap | $1,918,623,009 |
| Volume | $769,595,913 |
| Circulating Supply | 1,492,816,441 BAT |
| Social Media | https://twitter.com/attentiontoken |
| __ | https://reddit.com/r/BATProject |
| __ | https://t.me/batproject |
3.- What is an Equity Token? And explain an example.
Equity Token
Equity tokens are those specially introduced tokens that work just like the crypto stock markets but on the blockchain network. Equity tokens allowed their holders the Voting Ability as well as the dividends and much more as information is provided in the contract of the company. The investors of the equity tokens possess ownership in their investments. The percentage of these tokens possessed by the investors represents ownership.
As utility tokens are distributed by the Initial Coin Offerings(ICOs) just like the equity tokens are distributed by the Equity Token Offerings(ETOs). These equity tokens offerings run the sale of the equity tokens and fetch the investors to them, but this issuance of the tokens based on the blockchain. If there is any project that is new and has been launched on the equity tokens then these equity token offerings are used to raise funds to run the projects.
How Equity Tokens Work?
Equity tokens are run by the newly launched projects to raise funds by the ETOs and the investors looking for the investment invest in them and besides getting their share in the project they also get right for voting by holding the equity tokens. When the investors want to withdraw their investment they simply interchange their equity tokens but in this way, their share in the reward pool decreases, and their authority will be decreased also.
Benefits of Equity Tokens
- Equity tokens are safe and sound because of the strict rules and regulations.
- Equity tokens allow us to control the project.
- Equity tokens hold their high values as soon as the company is working on the project.
Example Of Equity Token
There are a lot of examples but ATLANT(ATL) is one of the most wonderful and popular examples to consider for equity tokens.
It is the real estate blockchain platform and offers apartments at the lowest fees and their global reviews. It was influenced by the ATLANT (ATL) token which is an equity token. This equity token was launched in 2017 and it is still active and working. Its first sale was started on 1 September 2017 to 1 November 2017. It is an ERC-20 standard token. For that first sale, it accepted ETH to buy them and its price was about 505 ATL = 1 ETH.
Current Price
According to the coinmarketcap it is currently trading at the price of the $0.01655.
According to Coinmarketcap Some of the important details of ATLANT(ATL) are given below:
| ATLANT(ATL) | Key Information |
|---|---|
| Market Rank | #1715 |
| Market Cap | $896,001 |
| Fully Diluted Market Cap | $896,001 |
| Circulating Supply | 54,175,041 ATL |
| Social Media | https://bitcointalk.org/index.php?topic=2053239 |
| __ | https://medium.com/@atlantio |
| __ | https://twitter.com/atlantio |
| __ | https://reddit.com/r/Atlantio |
Conclusion
The world is advancing with blockchain technology and the world is becoming tokenized. There are a lot of tokens but every token has its own benefit which cannot be denied. If you want to invest all the tokens may be suitable for you but it depends upon the conditions, your skills, and your management. If you have skills to manage utility tokens and you mistakenly invest in the security token then you may fail in taking a profit. So you should see your abilities before investing.
Cc:- @pelon53
Hola @mohammadfaisal
Gracias por participar en la Academia Cripto de Steemit.
¡Excelente tarea! Desarrollaste muy bien el contenido y los ejemplos fueron precisos.
Gracias por tu esfuerzo, sigue así.
Thank You sir for checking my homework and giving your feedback.
Sir i have a confusion that sometimes your username to me appear as @image as you can see in the screenshot and i become confused and in last post i tagged with @image username due to this mistake.
What is this sir? can you please tell me what is your real username?
Sorry for the inconvenience
Congrats @mohammadfaisal
Thank You, dear.
I am also here, I think you will be happy to see this.
Why I would make a good Steem Country Representative for PAKISTAN
@imagen :)
Thank You professor for the clearance. I think it happens due to Google Translator which I use to translate.
Twitter Promotion
You rock bro.@mohammadfaisal