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Crypto Discussion / Re: Utility VS Equity Tokens : What’s the Difference?
« on: May 27, 2019, 11:59:12 PM »As some people said above you equity token represent your ownership to that company but the utility is an ability to use your coin on the platform.The trends of 2017 and 2018 indicate that ICOs or Initial Coin Offerings represent one of the revolutions in fundraising. The ICOs have heralded themselves with so much of fanfare that it’s giving mild tremors to the very foundations of the mainstream investment ecosystem. Using ICOs, startups can raise funds by issuing tokens on blockchains. These tokens on blockchains like Ethereum are then sold to potential investors.
These tokens are tradeable and fungible, quite similar to cryptocurrencies. The difference of the token’s lies in whether the tokens grant access to a service or as equity in the company. The tokens that grant access to services are termed utility tokens and the ones that entitle you to equity in the company are called equity tokens.
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Equity??? What's equity token? Never heard of it before, the utility is understandable, but equity...
Just like when you are investing in ICO and you will get token and that token can be considered as your ownership to the ICO's company but when you are buying veil and use on its platform and this can be considered as utility because you wanna use the ability or features that available on the platform.