Can a Utility Token Transform into a Security Token over Time?

Yes, a utility token can potentially transform into a security token, a concept often referred to as "securitization creep." This happens if the token's use case or the network's degree of decentralization changes. If the token's value becomes predominantly driven by speculative investment rather than its utility, or if the network's success remains highly dependent on the efforts of a central team, it may fail the utility test and be reclassified as a security.