5 types of Digital Token.

Autor: Pipeline Capital
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What is token?

“Token” is an English term that means  token or symbol . The word can be used to designate a physical or digital device that automatically generates passwords and is widely used by banks and logins on technology platforms.

In the crypto investment market, the token is the electronic representation of a real asset to facilitate asset negotiations. Be it a physical object, such as developments and equipment, or non-tangible products, such as copyrights and digital currencies.

Tokens are created to fulfill a specific objective  defined by an organization or an individual and that can range from raising money to allowing access to services. All assets act as a medium of exchange and use cryptographic signatures for security and record keeping. But there are some fundamental differences. See what they are:

  1. Payment token

Cryptocurrencies are a type of payment tokens. This asset works like money, being used as a method of payment for goods or services, mainly in online environments. Due to the level of cryptographic security, electronic transactions with this tool are unlikely to be defrauded.

  1. Utility token

Utility tokens are the most common type, with the main function of granting holders access to a product or service, used during an initial coin offering (ICO). Businesses looking to raise money offer utility tokens to investors that they can use to buy goods or services they provide.

  1. Security token

Security tokens are tied to ownership of assets that already exist. Each represents a fraction of a tradable asset, such as a car, paint, stock, or real estate. This type allows transactions involving these assets to be tracked.

  1. Equity token

While security tokens can theoretically be tied to almost anything of value, equity tokens can only be backed by shares in companies or commodities such as coffee, oil and gold. These assets give the same rights as traditional papers and are regulated by financial authorities.

  1. Non-fungible token (NFT)

Non-fungible tokens (NFTs) are a way to digitally record ownership and transfer of unique, specific, and exclusive assets, such as a work of art or land in a digital world. The NFTs market exploded in 2021, catching the attention of investors.

Article originally published by Estadão.

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Pipeline Capital

Pipeline Capital Tech Investment Group is a tech-driven advisory and investment platform that integrates intelligence, excellence, international presence, and profitable ventures for founders and investors. Established in 2012, Pipeline draws its name from a famous Hawaiian beach, as its founder is an avid surfer, symbolizing how the business world comes in waves, the opportunities rise and fade swiftly. In the business landscape, it’s crucial to be prepared to spot, anticipate, and capitalize on these waves of opportunity, so our mission is to support companies in catching the best waves and riding them with excellence to secure the best deals. We are not a traditional M&A and investment firm. Instead, we were founded and are managed by entrepreneurs who are also partners of the company. With years of expertise in Tech, Advertising, Marketing, and Finance, we possess deep knowledge of the tech sector and extensive global experience. As a Capital Tech Driven Company, we believe the best business opportunities lie in the intersection of investments and technology.

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