Crypto Academy Season 2 Week 2 Homework Post for (@pelon53 ) - Tokens

Hello Steemit Crypto Academy Community,

Professor @pelon53 gave extensive information about tokens this week. The professor asks us to explain what Security tokens, utility tokens and Equity tokens are, with an example. I read the professor's course article, did my research, and now I'm writing his homework.

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What is a Token?
Token refers to a value found on a blockchain. Tokens do not have their own blockchain. They are built on any blockchain project and are dependent on that blockchain. Since tokens have a value, they can be used in trading. A token can be generated on different blockchains. For example, USDT is a token. It does not have its own blockchain. It can be produced in many blockchain networks such as Ethereum, Tron, Eos. You can transfer USDT to an ERC-20 based address. You can also transfer USDT to a TRC-20 based address. Transferring and transferred addresses must have the same network.

A token is the equivalent of a value, a product. For example, the table produced in a tree business is a token. A locker produced in the same business is a different token.

Differences between cryptocurrencies and tokens

Cryptocurrencies are digital money, while tokens are digital assets.
Cryptocurrencies have their own blockchains, while tokens do not have their own blockchains. They are dependent on cryptocurrency blockchains. There is no need to create a blockchain to create a token, while a blockchain is required for Cryptocurrencies.
Tokens have limited usage areas. It is developed for the purpose of generating smart contracts. The usage areas of cryptocurrencies are wide. It refers to the asset and is used in asset transfers.

Token Types
It is not correct to make a general classification for tokens. SEC from the United States and FINMA from Switzerland have started various studies to classify. In this homework I will talk about Utility Token, Equity Token and Security Token.

Security Token

It is the state of tangible assets, such as company shares or real estate shares, shared on the blockchain. ICO initiatives used to invest in projects in the virtual environment, while security tokens invest in real, tangible projects. For example, you can buy a share of a real estate, you can buy a share of a company. In fact, Security tokens are no different from traditional bonds or stocks. Recently, STOs have become more preferred than ICO initiatives. This is because most ICO attempts result in fraud. Almost all over the world, cryptocurrencies are not banned. However, ICO initiatives are prohibited in many places such as South Korea. The reason is very easily defrauding investors. Some regulations have also been made regarding STOs.

Starting an STO is quite difficult compared to the ICO. Because there is an obligation to present an investment contract in accordance with the securities law.

STO (Security Token Offerings) can be briefly called security token offers. If we invest in regular stocks, ownership information is provided to you in the form of a document. STOs are similar, but run on the blockchain and are issued to the recipient as a token.

The difference of STOs from IPOs is that STOs issue tokens on blockchains, while public offerings share certificates with investors in traditional markets.

The most popular of the security token platforms are Polymath, Securitize, and Harbor.

Security token example Polymath (POLY TOKEN)

It is the token of the Polymath platform. It is a decentralized ethereum project created to make it more useful to create and manage security tokens. It allows users to trade in a healthy way with verified participants using the security token.
The working principle is exactly as follows: It adds investors and ethereum wallet addresses to the whitelist and requires compatibility among themselves. The aim here is to ensure the safety of the users, to ensure that the users use the platform in a healthy and safe way. The token standard is the ST-20 polymath standard. Poly tokens are used for payments between actors in the market.

It was designed by Trevor Koverko and Chris Housser in 2017, and built on the Ethereum network via smart contracts in 2018.

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The current price of poly tokens is $ 0.411.
Coinmarketcap rank 180
Market value $ 247,933,393
Circulating Supply: 610,331,538 POLY
Total Supply: 1,000,000,000
Popular exchanges listed: Binance, Huobi, Poloniex, Uniswap

Utility Token

Utility tokens can be called service tokens. Utility tokens can also be called user tokens or application tokens. It is used to access a product or a service. The striking aspect of service tokens is that they are not designed for any investment purpose. ERC-20 based tokens on the Ethereum platform are a good example of service tokens.

Those who have utiliy tokens in their account do not have any rights over any venture capital in return for these tokens. It is not possible for the capital to get a share from the profit / loss to be obtained. Their main purpose is to facilitate access to products and services. The quality and brand of products and services vary according to the balance of supply and demand. Therefore, the prices of utility tokens vary according to the services or brands.

As it is known, one of the popular tokens of the last period are fan tokens. Users want to gain access to their club's products or services by purchasing fan tokens.

Some of the utility token platforms are BAT token, PSG token, GAL token.

Utiliy token example (GAL TOKEN)

Fan tokens belonging to many clubs were created on the Socios platform. Fans who own this token will easily and practically access the opportunities provided by their clubs. One of the fan tokens created on the Socios platform is GAL Token.
GAL Token: It is a token created for the fans of Galatasaray Sports Club.
Through the GAL token, fans can access many services. These are as follows.
Voting in the polls opened by your club on the Socios application. While this may seem like a simple thing, it is important to take part in the club's poll for fanatical fans.
For example, a questionnaire can be submitted to the fans to choose the club logo. A questionnaire was created for the first 11 of their teams in the friendly match. In the team's lineage, a questionnaire was submitted for the room design, and those with fan tokens took part in the survey.

The match ticket can provide the jersey with the opportunity to own a product that is valuable to the club.

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The current price of GAL Token is $ 7.99
Coinmarketcap rank 716
Market value $ $28,249,859
Circulating Supply: 3,507,572 GAL
Total Supply: 10,000,000 GAL
Popular exchanges listed: OKEx, Paribu, Chiliz

Equity Token

It is called a stock token. It has a deep similarity with the public offering system. In the public offering, the investor contribution in the equity token system is at the same level. In other words, token holders have the right to receive dividends and fixed commissions. In Equility tokens, investors own virtual tokens, while in public offerings, they own physical documents.

ETOs are digitally advanced versions of IPOs in traditional financial systems. Companies in ETOs are obliged to comply with financial regulations. Thus, the rights of investors are protected by laws or certain regulations.

Those who invest in Equity tokens get the real share of the company, including voting rights and dividend rights, in return for their investments. ETOs seem to be a suitable funding method, especially for companies that need growth capital. Tokenization is more practical than traditional habits. Companies that are pioneers in this field will gain great gains from this in the upcoming years. Equity tokens can be divided into very different classes as shares of corporate ownership.

We can see equity tokens very differently. Sometimes in the form of stocks, sometimes futures, sometimes options contracts, sometimes in the form of tokenized real estate.

Some of the equity token platforms are Dao Maker token, Media Show.

Equity token example (Dao Maker Token)

It is the token of the Dao Maker project running on the Ethereum blockchain. Dao Maker Token holders play a role in ecosystem governance. It aims as a starting platform for entrepreneurs investing in stocks and tokens on the decentralized ecosystem.

The fact that it has been able to finance itself since 2018 stands out as one of the striking aspects of the project. When you enter the Dao Maker website, you can see the slogan of investors reducing risks, creating financing frameworks for beginners.

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The current price of Dao Maker Token is $ 7.56
Coinmarketcap rank 307
Market value $149,475,226
Circulating Supply: 19,739,747 DAO
Total Supply: 307,499,880
Popular exchanges listed: Gate, KuCoin, UniSwap

Conclusion

By attending the professor's course and preparing homework, I got a thorough knowledge of tokens. Before, I had moderate knowledge on this subject, but now I have learned all the details about it. I noticed that there are important details about Securite Token, Utility Token and Equity Token.

Thank you professor for this useful course article and homework.

Cc:
@steemitblog
@pelon53