Security tokens add an equivalent manner as traditional securities. Also called equity tokens, these act as a stock or share of the corporate , which is given to the customer once the initial coin offering ends. By purchasing security tokens of a company/project, you get certain rights along side sharing within the company stocks.

Security tokens are different from utility tokens therein they’re limited by specific federal laws and rules of stock trading.

Equity tokens, by nature, also can be accessed outside of the platform on which they’re developed. the worth of security tokens may rise or fall consistent with the project’s performance, almost like stocks, which isn’t the case with utility tokens.