Utility Tokens vs. Security Tokens - Learn the Difference 

What’s helping me to figure this out, is that if a company created a coin, offered it as an ICO, and owns/has control of most those coins, it is most likely a Security. I found that this is the underlying issue with XRP and Ripple. XRP was around before the company, Ripple. But, Ripple owns a majority of all XRP coins, and the SEC is trying to figure out if they used XRP to fund Ripple’s start up. If so, that make XRP a Security coin. This is my understanding of their issue, so I’ve started using this as my litmus test on whether a coin is a Security, or Utility. Bitcoin will always be a Utility coin, because its rewards split every four years, which means it’s not subject to a 51% attack. No one person/company can own a majority of all Bitcoins ever mined.

@@lmorris6170 did you hear ripples' answer to this topic. They never did an ICO. They said holding an asset alone doesn't qualify as security. They gave examples of oil and diamond companies having most of an asset not being security companies.

@@lmorris6170 Getting people to invest with the expectation of profit IS a security. The crypto must prove otherwise, or offer meticulous tracking of every transaction. Know your buyer, etc. The perfect token would be one that offered the best of both utility and security. It is possible, with open source AI. I'm building such a platform now.

It's lies by the government, they're all utility tokens but become security tokens if they think they can steal your money.

@@MotesTV FTX was in no way a utility token, other than to launder money through Alameda Research.

You are good! Keep them ALL

@@raul7293 lol I know, trying to get some more 🤣

@@basicbarks use bitrue

@Scrooge McDuck being that I get almost $180 every time it goes up a penny, I guess so Scrooge McFuck, clearly it was a joke

XRP?

@Scrooge McDuck Thanks!

Chainlink is for sure utility

Utility

Because the you have to deal with the SEC, as well as other state and. federal regulations, including audits.

I suppose to avoid regulation.

@@metaverseplayer Regulations means paper work and accountability. Most crypto founders want the quick buck or become billionaires.

Because it looses its essence of decentralized ecostystem , it will again be in control of government

Actually a STO is way more expensive and SEC laws are definitely included. An ICO is cheaper