Type Of Alt Coins Security Tokens Training Ppt

Slide 1

This slide discusses security tokens as a type of altcoin. Security tokens are digital assets that are traded on stock exchanges. The transfer of value from an asset to a token made available to investors is known as tokenization.

Slide 2

This slide describes how a security token works. A security token could represent fractional ownership in almost any asset, including business shares, commercial real estate, fine art, and even antique cars. The issuer fractionalizes the asset into a certain number of tokens, which are then sold to investors in a regulated offering.

Instructor’s Notes: The adoption of blockchain technology removes roadblocks to the process of issuing security tokens and allows for a greater variety of securities to be launched into the market.

Slide 3

This slide depicts types of Security Tokens. The three main types are equity tokens, debt tokens, and real assets tokens. 

Instructor’s Notes: 

• Equity Token: Equity tokens represent the value of a company's shares on the blockchain. The technique of registering ownership distinguishes an equity token from a standard stock. A traditional stock is entered into a database and is represented by a paper certificate. On the other hand, an equity token is recorded on an immutable blockchain
• Debt Token: These tokens represent real estate mortgages, corporate bonds, and other debt instruments. These tokens typically pay a regular interest based on the underlying debt instrument's payments. In debt valuation, a debt token is exposed to the risk of debt default. A smart contract can represent the security token, which contains repayment terms and risk indicators related to the underlying debt
• Real Assets Token: They represent ownership of any real-life asset, like commodities, real estate, artwork, etc. Blockchain technology enables transparent records of complex transactions and aids in tracking entities, lowering the risk of fraud