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Do you think that the idea of a Security Token is more convincing than a Utility Token?
I do think so as the security token is far more authentic than the utility tokens. Ill tell you why. As the ICOs are becoming a trend in crowdfunding, utility tokens are somewhat less feasible than security tokens. Because many invest in blockchains while they are still in beta. Now if the blockchain fails to bring what it was supposed to then you will lose all of you investment.

And in case of any hacking or security issues like DAO attacks which first happened in 2016, if something like that happens to a blockchain than that blockchain is done. That attack in 2016 made ETH drop from $20 to $13. And before 2020 most of the icos you see now will most probably fail. Because many of them are tokenized when they don't even need to issue a token. They aren't utilizing the maximum utility their token offers. Their weak standpoints make their token look like its made only FOR HODL and for selling them to buy bitcoin.

Ill give you an example. Ever heard of a token named UET? They were a ERC-20 Ethereum based token and they raised over 40,000$ in their first three days. But, Do you know what UET means? It stands for "Useless Ethreum Token". It was a joke coin. That's how insecure utility tokens are.

But security tokens are more secured as they are issued by an established centralized organization such as US-SEC. They don't just allow anyone to announce an ico. With years in preparation in legalities and what not it makes the ICO as vet as its possible. And security coins have more utilities than utility token itself. These are far more liquid and they are like investing in stocks. you will get ownership of the company itself with its token. You will have a say in their decisions too even if you don't have the highest amount of shares.

Security tokens also allow dividents, profit sharing, Buyback rights equity etc and whatnot. And if the ico anyhow fails you can cover some of your losses as security tokens always have a valued asset backing the token. So yeah, Security tokens are far more convincing. But these are just my opinion.

It depends, they are not the same so it's kind of comparing apples with oranges. 

An utility token is like a coupon, it gives you right to a service or commodity. Utility tokens can also give voting rights. You can use it for different things like:

  • Give users who stake your utility token a discount on your services.
  • Make a membership system where the utility tokens gives you certain rights and privileges.
  • Utility token as a way of payment system for your goods or services. 
  • ...

A security token is more like a normal security but instead the contract is made on the blockchain. You can get certain rights that you don't have with an utility token. Since a security token is a share in a company you can get dividend and get voting rights in the business and ownership rights. When you buy a security token you are a business owner while an utility token gives you rights to the services of a company.

Security tokens are very new. One of the few interesting projects i know of is Börser. You can invest in the shares of a holding company in the form of a "cryptocurrency" investment.  

For more information you can join their telegram channel here: https://refer.bounty0x.io/tg/nkCa4ojB2sXBq8ArKMKB


Personally, I don't invest or interested in token, but I look more towards the technology behind of a token.

Again, Cryptocurrency is the first adoption of blockchain, so it might just come and go, but the technology left behind, blockchain will stay and being widely adopted in the world.