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ICOs are the actions of the 21st century. Born in the context of the new digital economy and driven by the wave of startups, the “IPOs 2.0” have caused a lot of movement from traders and investors enthusiastic about innovation and technology engaged in the dynamics of the digital age.
And, like all technology, ICOs are very flexible and can adapt to the needs of new scalable companies looking to grow in such a volatile, uncertain, complex and ambiguous market.
Read on and find out what forms 21st-century actions can take.
- Utility tokens: they are the most popular type of token, as they can be used to perform various functions within your issuing platform and are the best alternative for capitalizing startups. Basically, they aim to make a network work. For this, they offer the buyer the right to use services, products or platforms and are equivalent to advance purchase and with a discount on what the issuing company will offer. As they are tokens of a predetermined quantity, profit generation uses the principle of scarcity, causing the prices of tokens to rise and, consequently, are more profitable for the issuing company.
- Security tokens are tokens that allow investors to return their invested capital through income. The ICOs offered in this form of the token have security features and are widely used for trade purposes. That is, they are tokens acquired with a view to subsequently making a profit. The advantage of this type of token is the ease of trading for investors. The disadvantages, however are that these tokens need to be evaluated and approved by regulatory bodies and do not grant the investor the right to participate in the company’s decisions.
- Equity tokens: called ICO 2.0, are tokens that work like a company’s shares, giving the investor profits and the right to vote when making company decisions. The difference between this type of token and a traditional action is the fact that the token involves less bureaucracy, as it is registered directly on the blockchain. They generally work with the principle of voting equity and receipt of profits, that is if a company issues 1000 tokens, each of them represents 1% of the right to gain profits and 1 vote out of 1000 in decisions about the future of the company. company.
- Credit Tokens: they are quite simple tokens and good ways to capitalize on startups. They work like a loan, the investor puts capital X in the startup and aims to obtain X + 10%, for example.
- Combo Tokens: Some ICOs can combine the function of various types of tokens themselves, such as a token that acts as a utility token (utility) and equity (security).
- Payment Tokens: are tokens used for the transfer of capital and are adopted for the payment of products, services, international remittances, etc. Therefore, they are means of payment such as Bitcoin (BTC), Ripple (XRP), etc.
As you can see, tokens are very flexible and can take the most diverse forms to fulfill a company’s purpose, be it initial capitalization, maintenance of the platform, aiming at trading activities or payments for products and services, tokens are practical ways, profitable and non-bureaucratic for companies to achieve their goals and help further encourage the crypto market and drive the new digital economy.