Analyzing the difference between security and utility tokens

The debates about utility tokens and security tokens have been on for a while. In the cryptocurrency niche market, there are two distinctive classes of tokens: we have the utility tokens and the security tokens. In this article, we shall be analyzing both of them closely.

I) Utility tokens
They serve as a future access to a product or service and can be compared to a software license. A typical example of a utility token in the cryptocurrency market, is the Solarex token (SRX). The Solarex utility token (SRX), is an innovative off-grid solar energy technology token that is built around the Ethereum platform and gives access to the services provided on the Solarex ecosystem. Each Solarex token is expected to increase in value based on its multiple functionality and fact that the token will be listed on major exchanges 14 days after the end of its ICO.

II) Security tokens
Security tokens on the other hand are tokens that constitute an investment contract, where the main use-case, and the reason for the contributors to buy the tokens, is the anticipation of future profits in form of dividends, revenue share or price appreciation. Some token offerings are also structured as a donation, whereby those who contribute Bitcoin or ether in exchange for tokens are deemed to have charitably contributed to a foundation or non-profit entity.

The sustainability of this model cannot however be guaranteed for long term considering the fact that it doesn’t provide any form of legal protection on the investor part.

Personally speaking, I would opt for a utility token for any potential crypto investor, due to its futuristic value and the fact that most ICO presently in the market are tending towards the utility token direction.

The good news for all crypto investors is that the Solarex Pre-ICO token sale is officially launched, and it’s open for new users.
To join, simply visit https://solarex.io register and fund your account with ease and you can go ahead to buy Solarex tokens with ease.

The Solarex bounty program has also officially kicked off and you can be a part of the airdrop to stand a chance of sharing in a massive $5,000,000 bounty which will be paid 14 days after the end of the token sales.

Media Contact
Africa Blockchain Research Council
Mobile: +44(0)8712884283
Fax: +44(0)8712774009
Email: info@solarex.io

Editor

Program Coordinator, Nigeria

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