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How to differentiate between a utility token and a security token?

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ethereum token

Blockchain has emerged as a liberating technology which gives the power in hands of the people who use it. It cuts off the mediators, gives a transparent outlook, promotes decentralization, tokenization, smart contracts etc. Such technologies are very important for the sake of the progress of the world economies. Blockchain technology is one such technology which is aiming to disrupt the customary methods of every sector in the economy. It is due to its flexibility, adaptability along with various cool features that it can be molded into various utilization. Lets see the difference between a security token and a utility token.

 

Blockchain comes with the power of tokens:

Revamping organizations and their methodologies are always essential for the progress. Tokens are some power packed feature which enables to draft mechanism for the company’s workflow, designed for certain use cases. In general, tokens are stores of value which can be used to store specific functionalities which can be used for that specific reason, systems or condition. Categorized into various types, tokens are mostly Security tokens and the other one are Utility tokens.

 

What is a security token?

Standing between the organization and the blockchain network, security tokens helps both of them. The major difference between them is that of regulations. Utility tokens lack regulations. Moreover, they are more complex than the utility tokens. They are mostly used and beneficial to the contract while investments. They are considered in the hope of profits in the future.

 

What is a utility token?

Utility tokens act as an access to a service for the future. This is similar to a gift card.

 

Which one is better?

It is very simple and inexpensive to issue security tokens under frameworks such as Regulation D, Regulation S and Regulation A+. They can decrease the risks as compared to utility tokens and IPO. In case, a certain company accepts a security token, it is similar to an investment which will provide the investors few advantages such as profit sharing. When talking about the utility tokens, when are used in ICOs they are mainly used for the progress of projects with the help of the contributions gained during the ICOs. They are different from the security token since they are not utilized for investment purpose. The prices of utility tokens may fluctuate greatly. Each token has its own purpose, it’s time that some precise use of each token should be specified more accurately.

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  1. Pingback: Top 3 ICOs to invest in June 2018, Ubex, Welltrado, Photochain – Cryptocurrencies World News

  2. Pingback: Top 3 ICOs to invest in June 2018, Ubex, Welltrado, Photochain - Wiredfocus

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#Ethereum

Analysis: Will Ethereum Rise in 2019?

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There is a great possibility that the price of Ethereum might never rise again, At least not to the figures it earlier achieved.

Bitcoin and Ethereum have been leading the cryptocurrency market for quite some time. While bitcoin blockchain’s main motive is to track the transactions, Ethereum’s main motive is to run the codes of DEX or decentralized apps.

While most people feel that bitcoin will always lead the cryptocurrency market, some believe the cryptocurrencies such as Ethereum might overtake bitcoin in the future. Currently, a group of companies known as Enterprise Ethereum Alliance supports the Ethereum blockchain who are working hard to improve the overall functionality of the blockchain.

 

Can Ethereum rise in 2019?

While Bitcoin is a store of value and most people use bitcoin as a form of investment, Ethereum is mostly used by software companies for development of their own dapps.

Ethereum saw a tremendous rise in price as well as in market capitalization during the ICO era which might have ended last year. In 2017, there was a boom in the overall ICO market and most Initial Coin Offerings collected their investments in the form of Ethereum. This had led to a massive demand for ETH as investors had to purchase ETH first in order to invest in other initial coin offerings.

Ethereum Price Chart

Ethereum Price Chart

The price of Ethereum reached more than $1400 at the start of 2018 and people started to feel that Ethereum might even overtake bitcoin soon. However, as months passed in the year 2018, both the price and the market capitalization of ETH experienced a massive mall which might be related to the end of ICO era. Cryptocurrency analysts also believe that the massive selling of Ethereum by Initial Coin Offerings who had been storing them as investments was the main reason for the fall in the price of ETH. Thousands of ICOs started selling their ETH holdings when they saw a bear market coming upfront.

 

Why ETH might never rise again:

There is a great possibility that the price of Ethereum might never rise again, At least not to the figures it earlier achieved. One of the reasons for this is the rising popularity of other blockchain platforms such as TRON who are direct competitors to ETH and some are even performing a lot better than Ethereum. The overall development of ETH blockchain seems to be quite slow and thus people have started to adopt other blockchains which are more suitable for their products and perform better than the Ethereum blockchain.

 

Another big reason why Ethereum might not rise again is the end of the ICO era. The number of initial coin offerings has seen a tremendous decrease last year and even lower this year. Also, the interest of investors has shifted from Initial Coin Offerings now as they do not see a safe and profitable future in investing in ICOs. As one of the major reasons for the rise of ETH was the ICO market and now with the end of the ICO era, Ethereum might never see those robust bulls again.

 

The following article is not financial advice. Readers are requested to do their own research and analysis before making any investment decisions in the cryptocurrency market which is highly volatile.

 

What do you feel about the future of Ethereum? Tell us in the comments section below.

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#Ethereum Price Analysis

ETH Price Analysis: Is Ethereum going to fall hard?

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ETH price is trying to recover, however, the resistance around $138 is quite strong and might lead to the price falling downwards.

Technical Indicators:

Support Level: $135

Resistance Levels: $138, $140

 

Key Points:

  • ETH price was able to recover back upwards after testing the $132 support.
  • ETH price even broke through the $134 and $136 resistance levels.
  • However, there is a bearish pattern formed with resistance around $138 on the hourly chart which might lead to a dropdown.

 

ETH Price Analysis:

Summary: ETH price is trying to recover, however, the resistance around $138 is quite strong and might lead to the price falling downwards. The next resistance lies at $140 after which Ethereum price will turn bullish.

Ethereum price crashed after testing the $140 resistance level recently. ETH tested the $132 support level before starting to recover upwards. The upward momentum was able to break the $134 and $136 resistance levels. However, there is a solid resistance formed between $138 and $140 which might push the price back downwards.

Ethereum price is currently trading around $137 and the 100 hourly SMA. There is a bearish pattern formed with resistance around $138 on the hourly chart. If Ethereum is able to break through the $138 resistance level, the next strong resistance lies at $140 after which the overall momentum will turn bullish. The current support lies at $135 after which the price might test $132 support again.

ETHUSD Price Chart

ETH/USD Price Chart

The chart shows that ETH price is trying to recover upwards towards $140 resistance level, however, breaking through this range will be very difficult as a lot of sellers are placed within this range which might lead to the price falling down towards $135 support.

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#Ethereum Price Analysis

ETH Price Analysis: Has Ethereum turned bearish?

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ETH was fell down massively against both bitcoin and USD. Ethereum even broke the $134 support level and moved into a bearish zone.

Technical Indicators:

Support Level: $132

Resistance Level: $140

 

Key Points:

  • ETH price was not able to break through the $140 resistance level and corrected downwards.
  • The downward correction even broke the $134 support level.
  • A bearish pattern line is formed with resistance around $140 on the hourly chart.

 

ETH Price Analysis:

Summary: ETH was fell down massively against both bitcoin and USD. Ethereum even broke the $134 support level and moved into a bearish zone. The price is currently trading below 100 hourly SMA which signals a bearish trend.

Ethereum attempted to break the $140 resistance again however, it failed and crashed downwards sharply. The selling pressure kept increasing and moved the price even below the $136 and the 100 hourly SMA. Also, ETH price broke through the bullish pattern line that was formed yesterday on the hourly chart.

The downward correction was strong enough to break the $134 support. The price tested the $132 support level before starting to correct upwards. The price is trying to move upwards, currently trading around $134. However, there are a lot of sellers placed on the upside between $136 and $140 which might prove bearish for ETH price. There is also a bearish pattern line formed with resistance around $140 on the hourly chart.

ETHUSD Price Chart

ETHUSD Price Chart

The chart shows that ETH price is now in a bearish momentum trading below $136 and 100 hourly SMA. The buyers need to gain strength in order to move the price above the solid resistance formed between $136 and $140 in order to stop further losses. Ethereum is currently supported at $132 level.

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