Author: CoinStreet

The platform offers an integrated & compliant Security Token Offering (STO) solution for Licensed Institutions and Digital Asset Exchange Operators SINGAPORE, Dec. 28, 2018 /PRNewswire/ -- STO Global-X, a Singapore based technology company, announced the global release of its institutional-grade, end-to-end digital asset exchange solution --...

DarcMatter Coin, the blockchain project created by global award winning fintech startup, DarcMatter, is happy to announce their new strategic investment partnership with CoinStreet Partners. Known as the next generation “Decentralized Investment Bank,” CoinStreet Partners enables the business ecosystem in the new era of crypto-economy. Both companies are...

What is a Utility Token?

 

Utility tokens are simply app coins or user tokens. They enable future access to the products or services offered by a company. Therefore, utility tokens are not created to be an investment.

 

Just like an electronics dealer might accept orders for a video game that will be released several months later, a startup can create utility tokens and sell digital coupons for the services or products it is developing.

What is a Security Token?

 

A security token is a digital asset that derives its value from an external asset that can be traded. Therefore, these tokens are subject to federal laws that govern securities. Failure to comply with these regulations could result in severe consequences including penalties and potential derailment of the development of a project.

 

Security tokens can offer a vast array of applications if the startup abides by all the regulatory requirements. The most promising of these features is the ability to offer tokens as a digital representation of shares of a company’s stock.