@seraphinase
How do security tokens differ from utility tokens in crypto?
Security Tokens: These represent ownership in an asset, like equity in a company or a real estate investment, and are subject to regulatory oversight. Security tokens offer rights to dividends or a share of the profits and are often used for fundraising in tokenized assets.
Utility Tokens: These provide access to a specific product or service within a blockchain network (e.g., gas fees on Ethereum or governance votes in DeFi protocols). Utility tokens are not designed to offer ownership or profit-sharing rights.
The key difference is that security tokens are investment vehicles with potential returns, while utility tokens are used for access within a platform.
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