Hello, Dear Friends
Newcomers to the crypto market are often confused about the difference between the classical cryptocurrency and tokens issued by startups and what type tokens can be.
Cryptocurrency is a method of payment created and used with the help of crypto protocols. Cryptocurrency has at its core the technology of blockchain - a chain of blocks with data which cannot be forged or tampered with. Database on all the transactions and wallets is decentralized and accessible by all the network participants. It has to be underlined that there is no single centralized server.
Token is a cryptocurrency issued by a company in a centralized way with no mining involved. Before launching an ICO, a startup issues a certain number of tokens to cover its needs. Investors interested in the project can use their funds for buying tokens. Information on investment in the project will be recorded in the blockchain and protected by a crypto protocol. In that sense coins and tokens have the same roots.
There are two types of tokens.
Utility token (useful token) is a domestic digital coin which provides certain advantages while using products of a given company. Investment is a must in order to simplify use of services or otherwise you must accept conditions for using this product. The simplest example provided NOT by the world of blockchain is an internal game token.
Utility tokens are purchased exclusively for internal payments, exchanges between users, fees for services and the like. Therefore, users do not try to reap benefits from selling these tokens.
Security token (investment token) is a digital asset purchased with a purpose to make a profit in future.
Our company, Reger Diamond, has issued the RDS (security) token. Your benefits:
Those who invested in this token expect to make a profit.
The main function of RDS token is a gainful investment.
Token holder makes the profit on behalf of the third party.
If you have a choice which token would you like to buy?
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