Token is intended to function as a means of payment. Payment tokens are digital units of value. They do not confer any particular right on the holder.
Token confers digital access rights to an application or service. Utility token has no function as an investment in economic terms.
Token represent assets (e.g. claims to dividends, interest payments or shares in a company, income, etc.) or may also include membership rights. Asset tokens are similar to equities, bonds or other derivative financial instruments.
Pre-Financing (“early project financing”)
No token exists at the time the funds are raised. Investors are promised that the blockchain or tokens will be developed and they will receive these tokens in due course, or that the project developers will implement a corresponding allocation proposal in the Genesis code of the blockchain protocol to be published. A repayment obligation and any other claim against the issuers is excluded.
Investors receive a Token A, combined with the option to exchange it for a Token B or to purchase Token B at a later date. Token B does not yet exist, but is being developed. A repayment obligation is excluded.
Token B is issued directly, but it does not yet work as planned in the future (e.g. as a means of payment), because the planned system in which the token can be used is still to be developed. A repayment obligation is excluded.
The fully functional token is issued.