SmartChain LLC
Published in

SmartChain LLC

Know the Difference Between Equity Tokens and Utility Tokens

Without wasting time, let’s discuss the difference between equity tokens and utility tokens!!

Equity Tokens

Equity tokens are generally known as security tokens that help represent ownership of an asset. Both Blockchain and smart contracts enable small businesses and medium-scale businesses to avoid the IPO route and shares are used through blockchain. This means that lenders can easily create tokens representing the debt that an organization owns and this would enable the loans to be bought by investors. And consequently, the company’s liquidity would be drastically enhanced.

If you are planning to raise funds, you must choose the right ETO development company that may help you increase your company’s profit through blockchain.

It’s observed that many investors believe that equity tokens can become the mainstream ICO token with the advantages of the blockchain and smart contracts. The equity tokens should be subject to federal regulations, and the companies that have established compliance with all the regulatory requirements can issue equity tokens apart from small businesses.

Equity Token Vs Utility Token

Utility Tokens

Also known as alt-coins, utility tokens are like the game-arcade coins that do not have any use outside the arcade. These utility tokens help to raise funds for a startup, but the tokens do not entitle you to equity. But if you are a token holder, you are required to purchase future access to services or sometimes, discounts on the product’s final price.

Let’s take an example:

BAT (Basic Attention Token) is one of the best examples of a utility token as it serves as a medium to exchange between advertisers and publishers. This would help users to monetize their browsers for hosting and viewing ads.

Why Choose Smart Chain?

Smart Chain is a leading ETO development company that helps create both utility and equity tokens. While creating equity tokens with utmost security and essential smart contract elements on the blockchain, our dexterous crew of experts may help you in establishing compliance with the requirements by the SEC.

All you need to do is connect with us and our blockchain experts will work to make your ICO vision a reality!

Visit http://smartchain.me/ to connect with the best ETO development company today!!

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store