What are security tokens and how are they different from utility tokens?

A

auroragrace

Member
Security tokens are a type of digital asset that represents ownership or participation in a real-world asset. They are subject to securities regulations and provide investors with certain rights, such as dividends or voting rights. On the other hand, utility tokens are designed to provide access to a product or service within a blockchain platform. While security tokens are regulated, utility tokens often have more flexible use cases.

source: https://www.blockchainappfactory.com/token-development
 
Security tokens and utility tokens are distinct types of cryptographic tokens used in the blockchain and cryptocurrency space.
 
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