@pulseshine
Security tokens represent ownership of an asset, such as equity in a company or real estate, and are subject to traditional securities laws. They provide holders with certain rights, like profit-sharing or voting, and are backed by real-world assets. Utility tokens, on the other hand, provide access to a product or service within a specific ecosystem but don’t offer ownership or equity in the underlying project. Security tokens are typically more regulated, while utility tokens are often more speculative.