Types of Investment in Crowdfunding Platforms in Security Token Offerings
Security Token Offerings (STOs) are a type of crowdfunding that involves the sale of digital tokens that represent an investment in a company or project. STOs offer investors the potential for higher returns than traditional investments, as well as the ability to diversify their portfolios. There are several different types of investments available through STOs, including equity, debt, and revenue-sharing tokens.
Equity Tokens
Equity tokens are digital tokens that represent ownership in a company or project. They are similar to traditional stocks, but they are not traded on public exchanges. Instead, they are sold directly to investors through STOs. Equity tokens give investors the right to vote on important decisions and receive dividends or other distributions from the company or project
Debt Tokens
Debt tokens are digital tokens that represent a loan to a company or project. They are similar to traditional bonds, but they are not traded on public exchanges. Instead, they are sold directly to investors through STOs. Debt tokens give investors the right to receive interest payments and repayment of principal at maturity.
Revenue-Sharing Tokens
Revenue-sharing tokens are digital tokens that represent an investment in a company or project's future revenue streams. They are similar to traditional royalty agreements, but they are not traded on public exchanges. Instead, they are sold directly to investors through STOs. Revenue-sharing tokens give investors the right to receive a portion of the company or project's future revenue streams.