The modern-day economy started its latest revolution with the introduction of Blockchain technology and the cryptocurrencies associated with it. In financial terms, assets mean “entities for storing value.” All actions, related to traditional assets such as stocks or bonds, can be (in some crypto financial instruments) translated into the blockchain ecosystem.
Crypto assets, as described by the Swiss regulator FINMA, are divided into three different sections: payment tokens, security tokens, and utility tokens. Payment tokens are the earliest form of crypto assets – they act just like fiat currencies and react to the same market forces. Examples of payment tokens are Bitcoin, Ethereum, Ripple, etc.
Utility tokens are a way to access applications or services. The closest resemblance to utility tokens can be found in online gaming, where users purchase “coins”, “gold” or other forms of in-game currency to buy upgrades, DLC packages, and many more.
Security tokens, on the other hand, are a step further into bringing blockchain technology head-to-head with traditional investment. Security tokens as a crypto asset class can be programmed to act as an equity share with automatic dividend payment, or they can act as a vote in the company management.
Under the hood of every crypto asset class lies the “blockchain” a network of individual computers (nodes), which gives cryptocurrencies and security tokens the ability to be transparent, fast and safer (the information is accessible and verified on every computer, so alterations have to meet a “consensus” before happening) way of data transactions.
Of course, everything is done via the Internet. And while ten years ago the access to the Internet was relatively expensive and hard to achieve operation, nowadays the Internet is everywhere, and almost 60% of the world’s population has internet access.
It is worth mentioning that crypto assets fall under the “Digital currencies” category, but not all digital currencies are cryptocurrencies. Loyalty points and virtual game cash are also digital currencies, but do not operate on the “blockchain” and have no real value.
Blueshare launched a Security Token Offering (STO) on May 6th. STO is the digital, cryptographic equivalent of the Initial Price Offering (IPO), commonly used when a company is listing shares in a traditional stock exchange. Users can invest in Blueshare’s business with as little as 200 Blueshare Tokens (BST). Each token is priced at €1,60, so investing in the otherwise hard to get mining business becomes easily accessible.