Difference between Utility Tokens and Security Tokens

Utility Tokens

1. Utility Tokens Security Tokens Provide access to a service or utility. For example, Filecoin which provides users access to its decentralized cloud storage.
2. Not regulated, prone to scams
3. They are not investments, so there is no profit guarantee although their prices may appreciate
4. No powers or rights to investors

Security Tokens

1. Provide ownership of the asset. For example, Aspen Coins allowed investors an indirect fragmented equity ownership stake in the property.
2. Regulated, considered a safe investment option
3. Being investments you can expect profits, especially in the long run
4. Investors can vote and decide how company works

This is a small section from our extensive market report on security token Offering (STO). If you would like to get complete hold over the nuances of this market with the present and future predictions, the key players, and how to build your own security token exchange, click here for the full research report.