Security Token VS Utility Token | Bitcointalksearch.org

magneto

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Quote from: Jayson (Torum) on November 13, 2019, 01:50:36 AM

Just between security token and utility token, which token do you guys prefer? I am actually on the side of utility token because there is a clear demand over there, which means assuming its supply stay constant, the price of that utility token will theoretically rise as demand increases.

I just can't see how security token is going to change the industry in any way.

What do you guy think?

Actually, the lines between the two tokens are very blurred and how they are classified are basically based on the sole decision of the SEC or any other securities regulators.

In terms of investment, I actually think that security tokens, given that the projects they represent a stake in are legitimate, will be better long term investments.

This is because you're essentially holding equity in a company when you hold a security token, and that will translate into a much better return than utility tokens, which derives from the demand from the product in the long run.

Emilyearl

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I'm a fan of security tokens for the sole reason of dividend sharing which doesn't come often. With utility token, I gain when price moves up if a security token project performs well, I gain when price moves up as well as from the profits made by the project. Its a two way gain with security token unlike utility token.

Jayson (Torum)

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Quote from: Red-Apple on November 13, 2019, 05:40:04 AM

well since there is no difference between the two and they are both garbage and have no demand at all, there is not much to choose from! and so far in the past couple of years we have seen that they keep changing the name of the tokens but in the end they are only serving one purpose and that is fund raising for the owners and then death. i have not yet seen any token that could deliver at least 10% of what they have promised. they just get pumped, some big pumps like 100% and then die off.

How about Binance Coin (BNB)? Whenever I wanted to look at the potential of utility token, I always look at BNB. The coin's utility in Binance ecosystem has definitely boosted the underlying value of the token. Their price graph is consistently up, which shows that utility tokens have a shot in the market.

As for security token, I really can't see any function, aside from representing security (ownership) in digital form.

Red-Apple

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well since there is no difference between the two and they are both garbage and have no demand at all, there is not much to choose from! and so far in the past couple of years we have seen that they keep changing the name of the tokens but in the end they are only serving one purpose and that is fund raising for the owners and then death. i have not yet seen any token that could deliver at least 10% of what they have promised. they just get pumped, some big pumps like 100% and then die off.

SamarasLoch

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Quote from: joinfree on November 13, 2019, 05:21:08 AM

In a volatile world like ours i would always go for a utility token either than a security token. Security projects need to approve themselves of several rules and regulations and this sometiimes stalls the development of the project hence there is a delay in the coming out with products of the project. When this happens, liquidity is mostly low and in the end investors end up making only scanty profits or none at all.

This is also an accurate benefit of Utility tokens over Security tokens. Security tokens most times offer little or no profits to its holders. Utility tokens on the other hand have an increasing demand and this reflects positively on the price of the token.

SamarasLoch

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Quote from: Jayson (Torum) on November 13, 2019, 01:50:36 AM

Just between security token and utility token, which token do you guys prefer? I am actually on the side of utility token because there is a clear demand over there, which means assuming its supply stay constant, the price of that utility token will theoretically rise as demand increases.

I just can't see how security token is going to change the industry in any way.

What do you guy think?

I actually prefer utility tokens too. We all want cryptocurrencies to gain mass adoption from the large population of people in the world and Utility tokens are the most feasible way to do that.

For example, When a blockchain project that solves a real life problem comes into existence and creates a token that will be used to access the platform, when a novice in cryptocurrencies finds the platform and likes the idea and wants to be part of the platform, he/she will be forced to buy the utility token of the platform so as to gain access to the special benefits of the platform in question. For Crypto novices on the other hand security tokens will look complex and they will only use them when they want profits or an alternative way do make money.

From the above illustration, you can see that Utility tokens are actually the best way to achieve mass adoption that we sought after. Security tokens too have their own benefits but the benefits and usefulness of Utility tokens outweigh that of security tokens. Thanks!

joinfree

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In a volatile world like ours i would always go for a utility token either than a security token. Security projects need to approve themselves of several rules and regulations and this sometiimes stalls the development of the project hence there is a delay in the coming out with products of the project. When this happens, liquidity is mostly low and in the end investors end up making only scanty profits or none at all.

tsaroz

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It actually depends on the project. Whatever be the nature of coin, it's project that yields profit.
With security tokens, you'd have a general idea about what to expect and what not. The value of security coins are fixed to the ratio of profit of the project like KCS from Kucoin or may yield a fixed percentage of profit like BB1 from bitbond. Utility tokens don't have any measures to fix it's price with the project and the price is largely manipulative.

Ajaone

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Am yet to see any security token project that is popular in the industry, I think the industry is not fully ready for security on blockchain technology so for now let's stick with utility token. Currently, we have many utility token projects that are doing well and as the industry continues to evolve, there will be more of them as time goes on.

ahyadinnn

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I think both are good, they have different functions and benefits for our benefit, but I often hold a Utility Token rather than a Security Token, maybe because I save up to get a discount.

Dau1coduot

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I prefer security token because it seems has more stability. Utility Token is too risky, i don't like it.

tinyteapot

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There is a great difference between the two of them, utility tokens are not created to be an investment but as a means of buy and selling whereas, security token are created to be an investment.

I think the end result have to do with the company handling the project, either of the token are good when handled reasonably.

Sacramentus

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To be honest I think they are both the same, I cant see the difference between security tokens and utility tokens since they share the same high volatility in the cryptocurrency market. Aside the fact that you earn dividend while holding a security token, but I still find nothing quite different from the both

VanDeinsberg12

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I prefer the utility token consider about to gain the utility usage and the platform must be relevant and put the role of token as a priority when the developers are developing the platform. In my opinion the performance of the security token will depend on the company and the only possibility for us to get dividend from there.

In utility you will get more benefit from your token and you can get the capital gain as more people use the token and buy it will increase the price of the token.

Security token means if that token has no usefulness and it will be act as shares for holders to the company. That's why those are holding security token will get dividend because basically they have owned some shares from the company.

Jayson (Torum)

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Just between security token and utility token, which token do you guys prefer? I am actually on the side of utility token because there is a clear demand over there, which means assuming its supply stay constant, the price of that utility token will theoretically rise as demand increases.

I just can't see how security token is going to change the industry in any way.

What do you guy think?

Topic: Security Token VS Utility Token (Read 134 times)