A common question we receive is, “What’s the difference between an Asset Token and a Currency Token?” To clear up some jargon right off-the-bat, Asset Tokens, or more accurately, Coins, represent shares, equity, or some other legally grounded asset, which is usually based off a company’s evaluation. Currency Tokens, less accurately referred to as Coins, also go by Gas Tokens, and sometimes Value Tokens, are not based on assets and thus have a value inherent to the mechanism that allows them to be distributed. Please note, we will stick to Currency Tokens because we feel this name directly reflects their purpose, which is to be traded, spent and received in the same way a currency is meant to be used. One direct, and the most obvious consequence to this is that Asset Tokens (due to popular nomenclature and consistency, we won’t refer to them by their more accurate title of “Coins”) when offered to the public are part of an ICO, where Currency Tokens when offered publicly are part of an ITO. SharesChain, and the SCTK token will be offering an ITO in May.
For more information on the differences between Asset Tokens and Currency Tokens, please visit our full-length article titled,“Asset Tokens, Currency Tokens and the SharesChain Network.”