Can a Utility Token Evolve into a Security Token over Time?
Yes, a utility token can potentially evolve into a security token, particularly if the project's network fails to achieve sufficient decentralization or if the token's primary value proposition shifts from utility to speculative investment based on the efforts of the founding team. Regulatory bodies may re-evaluate the token's classification as the project matures.
Glossar
Utility Token
Network Access ⎊ Utility Token represents a digital asset designed primarily to grant holders access to a specific product or service within a decentralized network, rather than representing a claim on future profits or ownership equity.
Security Token
Token ⎊ A security token represents ownership or rights to an underlying asset, leveraging blockchain technology to facilitate fractionalization, enhanced liquidity, and programmable compliance.