Utility Tokens vs. Security Tokens

Crypto security tokens and utility tokens are digital assets on a blockchain. Security tokens are digital assets that represent ownership in an asset, such as a stock or bond. They are subject to federal securities regulations and are used to raise capital for a company or project. A practical example of a security token would be a token representing real estate ownership. On the other hand, utility tokens are digital assets that provide access to a product or service. Therefore,…

What Are Crypto Utility Tokens?

Crypto utility tokens are digital assets used to purchase goods or services within a specific ecosystem or platform. They are typically built on blockchain technology and can be traded on cryptocurrency exchanges. A practical example of a crypto utility token is the Binance Coin (BNB). Binance is a cryptocurrency exchange that also has its blockchain, BNB Chain. As a result, BNB can pay trading fees on the Binance exchange at a discounted rate. Binance also uses BNB to power its…