By using crowdsale, we can receive funding from anyone who has ether. A crowdsale is a way of getting ether into the contract and, in return, minting new tokens for these investors. These newly minted tokens may or may not be like the shares of traditional stock markets.
However, this is the part of token economics in which there are some different classifications of tokens, such as security tokens and utility tokens:
- Security tokens: These types of tokens are sort of like traditional shares of the stock market. For example, the holders of these tokens get the dividend or profit share of the company that raised the funds and minted tokens for investors. These tokens may or may not support burning the tokens; however, they are linked to the company's performance and their revenue growth. As the company gets an increase in profit, it is shared between the...
