Token Classification — a framework for blockchain token classification

Disclosure: views expressed are purely personal and do not reflect any organisation’s views or thoughts the writer of this book may be affiliated or associated with.

We know that the blockchain and the token market evolve very fast, and for that reason, this token classification may not be one-size-fits-all. Let’s try tho.

This token classification is also a framework to help you to categorise different token sales, token uses and applications.

Token classification helps organisations understand which regulatory framework may apply to a specific token asset if the token is considered a utility token, investment or financial instrument, level of risk, the underlying asset, and other aspects of the token technical layer.

Blockchain, Cryptocurrencies, ICOs, Asset Tokenisation and Security Tokens. Everything is evolving at such a high speed that it is very hard for investors, regulators and projects to keep track of the market. What was considered in the middle of 2018 a “normal” ICO or Token Sale may be considered an Unregistered Security Sale that may lead to a ton of legal implications.

It also looks that many people refer to any tokens as “coins” or “cryptocurrencies”, which is not correct an ultimately may lead to misuse of…