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Utility Token:
: a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency
sold utility tokens as a method of fundraising for the start-up
****“Utility token.” Dictionary, Merriam-Webster, Accessed 10 Feb. 2021.

Security Token:
securities can represent an ownership position in a publicly-traded corporation, a creditor relationship with a governmental body/corporation, or rights to ownership as represented by an option. A security token is a tokenized, digital form of these traditional securities. Before we go any deeper, let’s revisit the basics.


What are Tokens?
It can be a little complicated to pinpoint on an exact definition of a “token”. To give you a very wide, non-generalized definition, a token is a representation of something in its particular ecosystem. It could value, stake, voting right, or anything. A token is not limited to one particular role; it can fulfill a lot of roles in its native ecosystem.

Before we go any further, however, we must make one more difference clear. The difference between a cryptocurrency coin and a token.

A cryptocurrency coin, like Bitcoin, Bitcoin Cash, Ethereum, etc. can be is independent of a platform. They can be used as a form of currency outside their native environment. Basically, these are the “cryptocurrencies” that we are all familiar with.

However, on the other hand, OmiseGO, Golem, etc. are examples of tokens which exist on a particular platform, in this case, Ethereum.

A token, represent an asset or utility that a company has and they usually give it away to their investors during a public sale called ICO (Initial Coin Offering).’.

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