Utility Token vs Security Token.

Security Tokens , most tokens issued by ICO are security tokens. The person buying them is investing their money in the ICO with the expectation of profit. Under Swiss law, these are treated in the same way as traditional securities. Utility Tokens – also called application tokens. They are used to provide people with access to either a product or service. They are also rare because most tokens are expected to gain in value based on their limited supply. Equity Tokens: if a token represents some stock or equity in the company that issues it, it’s an equity token. However, few companies have attempted such an ICO because there isn’t much regulatory guidance about what is legal and what is not.

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