#CryptoSecurity101

In order to delve into the subject of security tokens, we must first establish the foundations of the concept of a token. A token is a digital asset that is developed on the blockchain of an existing cryptocurrency; in most cases, it is based on the Ethereum network and its smart contracts. Security tokens, like other tokens, are offered in an Initial Coin Offering (ICO) or, as we know it in Spain, in an Initial Coin Offering. Their main objective in this process is to create a new way of financing to fund startups or other innovative projects.

Now let's define more concretely what a security token is.

A security token is simply a type of cryptocurrency token linked to traditional securities, meaning they are tied to financial assets, which gives the owner a series of rights and obligations (right to dividends or to vote).