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Block Chain Technology In India: 3 Types of ICO Tokens

BlockChain Technology In India: 3 Types of ICO Tokens
Over the years, a wide variety of technologies have gained transaction in the world with Blockchain technology being one of them. Over its brief existence, it has managed to make strides in a wide variety of industries out there. From ICOs to cryptocurrencies, the capabilities offered by Block chain technology is immense. There are a wide variety of top block chain application Development Company in India who hire the Top block chain developers in India. Especially, to come up with some of the very best block chain related projects.

In blockchain, it’s important to talk about Initial Coin Offerings which is nothing but the newest way of crowdfunding for start-ups. People invest in companies with their cryptocurrencies in exchange for crypto tokens mined locally the ICO service provider. There are a different number of tokens offered by ICOs. Some of the few are as follows:

Equity Tokens

One of the most impressive applications of smart contracts is the ability for ICO service providers to issue equity tokens through an ICO campaign. It is expected to be beneficial for start-ups as the barrier for financial market entry will be somewhat lower than before. The stock market will be accessible for the common day investor and shareholders will enjoy an active role in corporate governance. This is because all voting will be carried out through a blockchain environment developed by the Top Blockchain Development Companies in India. Though not used much, equity tokens are soon gaining attention and could prove to be game changes in the world of crypto finance.

Securities Tokens

A security is nothing but anything which can be traded off. With the help of ICOs, investors have an access to a wide variety of securities. These ranges from tokens to tokens and are backed by real estate.
However, these token sales are subject to security regulations in many countries. They can be treated as such if a security directly involves the investment of money.

Utility Tokens

Majority of the tokens can be treated as securities since many of the people investing in ICOs are there for investment opportunities. A utility token must pass three requirements of the Howey Test. These tokens are called apps coins or tokens which gives access for the people to the ICO provider’s products and services.

The total supply of these tokens is limited and their value might increase if the demand for the service or product increases. It is very important for ICO service providers to treat these tokens as mere utilities but market them as an investment.

It is important to realize that utility tokens are organizational distinctions and not legal ones. There is no official guidance when it comes to utility tokens thereby barring them to be part of security regulations.

These were the 3 types of tokens which are usually issued as part of an ICO campaign. India has seen a number of successful ICO campaigns in recent years all thanks to the technical capabilities of Top blockchain developers in India. It’s only a matter of time until India becomes one of the top ICO nations in the world.
Block Chain Technology In India: 3 Types of ICO Tokens
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Block Chain Technology In India: 3 Types of ICO Tokens

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