{"id":4112,"date":"2020-09-02T15:28:55","date_gmt":"2020-09-02T15:28:55","guid":{"rendered":"https:\/\/atozcrypto.org\/?p=4112"},"modified":"2020-09-02T15:28:55","modified_gmt":"2020-09-02T15:28:55","slug":"security-tokens","status":"publish","type":"post","link":"https:\/\/atozcrypto.org\/security-tokens\/","title":{"rendered":"Security Tokens"},"content":{"rendered":"
Security tokens are something most people know nothing about. This is about to change after you have read this blog. Tokens are electronic equipment that can be used to authenticate and represent one\u2019s ownership in the Blockchain community.\u00a0<\/strong><\/em><\/p>\n This can be used to enter the network and access the restricted areas of the network. You may find different security tokens, in the form of USB chips and ports, or wireless Bluetooth ones. Tokens cannot exist outside a platform, unlike cryptocurrencies like Bitcoin<\/a>.\u00a0\u00a0<\/span><\/p>\n These tokens are released by developers during an ICO (Initial Coin Offering). ICO\u2019s are similar to crowdfunding, but for the cryptocurrency community. If anyone wants to buy a token, he or she will send a particular amount of currency (Ether) to the seller.\u00a0<\/span><\/p>\n Similarly, if you want to invest in a project, you can buy these tokens for that. After the payment is received, you will have access to these tokens. Usually, two types of tokens are available; utility and security.\u00a0<\/span><\/p>\n If a token passes the Howey Test, it belongs to the security category, otherwise it is a utility token. What is the Howey Test? Here the focus is given on the fact if the value of a transaction depends on the other party\u2019s work or not. Other tests can be used for this purpose too.\u00a0\u00a0<\/span><\/p>\n