Types of tokens
At the moment, there is no unified classification for tokens. However, there three fundamental types of tokens: security/asset, utility, and payment. The different functions of each type are critical to the tokens valuation and the government regulations. For instance, the SEC and FINMA regulate Security and Payment tokens but not Utility tokens.
Each type of token has key features.
Security or Asset token
This category of tokens represents assets that participate in real physical projects, companies, or earnings streams, or an entitlement to dividends or interest payments. In terms of their economic function, the tokens are similar to equities, bonds or derivatives. INX is the largest security token offering to date.
Utility token
This category provides access to the goods & services that the project will launch in the future. Also, they can be used as a type of discount or premium access to the goods & services of the project. SpecTruth tokens are a perfect example.
Payment tokens
The tokens is to be items of inherent value (similar, for instance, to cash or gold) that are designed to enable purchases, sales, and other financial transactions. They are intended to provide
