Tokenizing Startups, from Utility Tokens into Security Tokens

Amroush, Fadi (2022): Tokenizing Startups, from Utility Tokens into Security Tokens. Published in: 5th Conference on Entrepreneurship & Economic Development (CEED) (17 May 2022)

Abstract

Blockchain is a revolutionary and commonly used technology nowadays. Blockchains are used in many fields, especially financial ones. Tokens are one application of blockchains that represents assets or access rights. Smart contracts and an underlying distributed ledger are used to manage tokens. In this paper, the differences between and the usages of utility and security tokens are discussed in depth. The problems of utility tokens and the ICO boom are mentioned as well. We also discuss how security tokens outweigh the benefit of utility tokens where companies and startups can use them as a standardized solution without suffering from utility tokens’ problems.

• Item Type: MPRA Paper
• Language: English
• Keywords: utility tokens, security tokens, blockchain, ICO, STO, ICO boom
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives

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