About
The emergence of DeFi and dApps created a whole new world of economics with tokens and cryptocurrencies โ popularly known as tokenomics.
These cryptocurrencies and tokens are not all created equally, and can vary widely with different utilities, use cases, and value offered to investors.
What are their differences, and which one should you invest in?
Key Learnings from this Debate
To answer this question, we gathered a few speakers to share their thoughts:
- James Matin-Lewis and Abhishek Malik from Tokenfolio, crowdfunding platform for tokenized equity
- Giovanni Vanini from DeFinci, advisory for Crypto, DeFi and Blockchain.
Listen to the recording, or check out our key learnings from this debate below!๐
- About
- Key Learnings from this Debate
- Differences between Equity & Utility
- Pros, Cons & Future of Equity vs Utility tokens
- What does this mean for investors?
- Related Articles
Differences between Equity & Utility
Equity tokens give ownership rights or asset value to a project. While Utility tokens give exclusive benefits such as voting rights, discounted fees, or early access to projects. ๐๐ป
Pros, Cons & Future of Equity vs Utility tokens
Today, tokens seem to be pretty obfuscating. Sometimes they seem to offer equity and/or utility; but it's not clear โย you're not sure if you get actual shares when investing in a token ๐ง
The crypto crash has made us seek real world value ๐ in tokens โ we want to projects to be accountable ๐ช๐ฝfor the effort we put in (time, money, skills) โ NOT just a marketing push using NFTs and tokens to push growth
That's why Utility tokens are increasingly considered to be tied to Equity. The Chair of the SEC, Gary Gensler, has made it clear that he believes most crypto assets qualify as securities. ๐ค
What does this mean for investors?
Both users & projects have to communicate transparently. Projects must be held accountable for any tokens, ideally tying them to real-world asset value. And if they're not, help users understand what they're getting into ๐ฅ