Codezeros

  2022 could be the year of Security Tokens and STOs. What are security tokens? Security tokens are cryptocurrencies, usually based on the Ethereum blockchain, that represent the dividends of the company that issues them. In this sense, they follow a different and even stricter regulation than utilities. Many exchanges are not authorized to list securities and different regulations must be followed to buy or sell them. Tokens can be divided into two types: utility tokens and security tokens. Most people are more familiar with utility tokens than security tokens because they are much more common. (Ethereum and litecoin are examples of utility tokens.) A security token, on the other hand, represents an ownership stake in an asset, typically a company, and entitles its holder to a share of profits in the asset. Security tokens are much less common. Advantages of Security Tokens Digitizing real assets by breaking them into fractional security tokens is a naturally streamlined idea tha...