INTRODUCTION
Hello steemians, I am very delighted to write my homework post for this week and also using this opportunity to say a very big thank you to prof @pelon53 for this wonderful lecture this week.

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What is token?

In simple words, before I get into the main subject, I will like to start by saying tokens are digital assets that arise from the moment a new project begins to be proposed or developed through an ICOs ( initial coin offering) the tokens offered by the project directors to investors are They sell at a base price and depending on the success of the new cryptocurrency,
A Token does not has its own blockchain, the tokens would be a kind of action on a project that is about to be born, offering the investors a certain opportunity or benefit for financing the project and being part of it.
the token will increase in value significantly.
In summary, a token is like a token or small asset that gives its owner rights to the shares of a company or project in progress and this is only interchangeable with the cryptocurrency associated with it, not with other currencies or cryptocurrencies.

Types of tokens

There are three(3) main types of tokens, they are Equity tokens, the security tokens and that of Utility token.

Equity Tokens

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An equity Tokens is a type of a security token that functions as a traditional share, in either the underlying company, third party(middle man) assets or venture and takes its value from the company’s success or failure.
In other words, equity token have more similarities with the stock market, by owning equity tokens as well as being an investor, you become the owner of the project having a percentage equivalent to the number of equity tokens that are owned.
More over, basically the equity tokens are tokens regulated by government entities that allow investors to buy shares of the project in the form of tokens.

Importance of Equity Tokens

1. It gives holders the same right as shareholders of the company
2. It also present an ownership of a company
3. Equity tokens guarantee crucial quality like right for the investors and issuers.

example of Equity Tokens

Neumark. (NEU)

This is a token which was created in 2017, and it is based on the blockchain with the nuefund platform based on Ethereum, this is based on a financing company for new entrepreneurs to go on the market.
It allows the investors to earn a certain percentage in a new token before they go on sale, also company investment earn a percentage due to volatility from it. This token is earned when the investors make me an investment on the neufund platform.

Security Token

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Looking at ICOs and Tokens, we must understand that the Token that is being created represents a kind of guarantee, which is Security Token.
The great defect of ICOs is that because it is totally free and decentralized, it can become a fraud, this is where the Security tokens and STOs play an important role.
The security tokens are security tokens offered by companies or projects that are regulated by government entities, laws and among other political bodies. This indicates that the tokens offer assurance to the investment community that the project is not a theft or a scam. This is to take the risk of being sued and having political and social problems in the law court. Also don’t forget that security token is not like utility token, if they are shares that are bought from the company, where they have rights,responsibility, opinions and word within the project or the company that developed tokens.
In other words, it reduces the chances of scam and the risk of losing money would be clearly that the cryptocurrency does not appear over time.

Example of Security Token

TapJets

This is a token, get into the market in 2019. With the value of 1 US $ dollar.
this token is used by the TapJets platform for private jet rentals all over the world. it works under an application that connects the customer directly with the closest private airline, to provide them with better comfort.

Utility Token

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This is a Tokens that allow us to perform or have some benefit using the services of the project, that is, this Token gives us the facility to fully enjoy the benefits and benefits of the project by participating directly in it.
When a company or entity does not have financing or needs a large investment for its project, it is necessary to create a certain amount of utility token to be sold to the market, where it offers the Investor great benefit on the future of the final project.
These tokens have certain limits because in themselves they are not assets as such of the company, rather it is the right to be able to use the services of the company, neither do they offer the benefit of having money or capital gains and also these tokens are the ones that most offered by ICOs that want to raise funds for a new company or project.
this type of token has a great relationship to the ICO token of cryptocurrencies and often tokens utility companies. Therefore, you must pay close attention to the country of origin of this token as well as its regulations and are attentive to any change in its structure.

Example

Brickblock (BBK)

This is all about processing and selling of real estate, its headquarters is located in Germany. The reason behind this project is to build a useful ecosystem with the benefit of carrying out all the necessary procedures and the sale of real estate in Europe and the world as large.

Conclusion

In conclusion, these three types of tokens speak a lot about the security that a new project or platform based on a blockchain cryptocurrency can offer to users willing to invest in said project.

The difference which is found in the utility tokens and security tokens since the utility tokes only allow to enjoy the services of the project or platform and the security tokens if they are shares and legal rights for those who invest in it.

I will like to use this opportunity to thank the professor @pelon53 for his wonderful lecture this week. I really learn a lot from his lecture and I hope my homework task will be accepted and review thank you!!!