Investment tokens are used as an investment tool. They can also be called security tokens. In fact, these are tokenized stocks, bonds and other securities converted into a digital token using blockchain technology. Security tokens are backed by real assets and linked to their value. They certify the ownership of the investor and make it possible to receive dividends, as well as real income on the difference in quotations.
Investment tokens have advantages, and there are many of them. They retain all the characteristics of a classic asset, but at the same time receive the advantages inherent in the blockchain. Namely, security and transparency - they cannot be falsified and forged. Moreover, security tokens remove from trading all intermediaries who are always involved in traditional securities transactions - banks, brokers and depositories are no longer needed. This means that not only trading commissions are reduced, but also the terms of the transaction.
Now let's talk about utility tokens or utility tokens. Their purpose is quite different - they are essentially the internal currency of a business, company or platform. They can be used to make transactions, purchase internal goods and services of the project, or pay rewards to users. In other words - for the functioning of the system in any variants. A good example of such a coin is Filecoin, which provides its owners with access to a cloud storage platform.
Service tokens also have an internal classification - they are divided into interchangeable and non-interchangeable. The first are assets that can be exchanged equally for similar others. The latter assert a unique right of ownership. That is, if he gives an example from the world of physical assets, then precious metals can act as interchangeable tokens, and real estate can be non-interchangeable. Moreover, unlike investment tokens, service tokens are not considered financial instruments, which means that they are not subject to the rules and restrictions concerning securities. That is, the use of a service token is possible only within the specific ecosystem that issued it and for which it is intended. And such tokens have nothing to do with investments.
As you can see, investment and service tokens have different purposes, as well as algorithms and features of functioning. If the first ones will appeal to investors who are looking for new profitable investment options for themselves, then the second ones are designed to work effectively with a specific platform and use it fully. And who knows - maybe one day our GRIN4 ecosystem will also have its own service token, which will be another big stage in our continuous development.
