Difference between Security Tokens vs Equity Tokens

  • Awareness of the differentiation between security tokens and equity tokens is an intelligent way to improve your cryptocurrency investment strategies. Knowledge regarding conventional utility tokens is fairly widespread at this point. Security and equity tokens, on the other hand, are new entrants to space. These tokens are very different in comparison to utility tokens.

    All equity tokens are by definition, security tokens -- on the other hand, some security tokens can be equity tokens, not all of them are.

    Equity tokens are representative of asset ownership -- security tokens on the other hand, indicate a share in the firm that has issued them.

    Equity tokens indicate control and ownership -- security tokens are backed up by tradable assets

    With regards to equity tokens, the ICOs are subjected to strict regulations in certain countries -- the ICOs regarding security tokens are tightly regulated in certain countries.