What is the difference between security token and utility token?
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The sole difference between these two are,
Utility tokens are not investment tokens, but basically a non-physical user tokens that grants future access to products or services that are offered by a company.
An instance is, a dealer could accept orders for a product that will be released several months later, meanwhile a startup can create utility tokens and sell digital coupons for the services or products it is developing.
A Security token on the other hand is a digital asset that derives its value from an external asset that can be traded because the tokens are connected to federal regulations and securities and due to these reason they are regarded or deemed as security tokens. They are also deemed as cryptographic tokens use to pay dividends, share profits, pay interest or invest in other tokens or assets to generate profits for the token holders.
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