Equity Token of ICO[More Details]

Equity Tokens:

One of the most promising applications of Ethereum-based smart contracts is the potential for startups to issue stock–or equity tokens–through initial coin offerings. This will benefit startups since the barrier to entry into the financial markets will be much lower than in the past. It will make stock trading more accessible to the average investor and allow shareholders to take a more active role in corporate governance since voting can be conducted transparently through the blockchain.

Due to the current lack of regulatory guidance, few startups have attempted to conduct equity token sales. However, Delaware recently passed a bill that allows companies to maintain a list of shareholder names on a blockchain rather than conventional methods, which will enable blockchain-based stock trading. Consequently, it is likely only a matter of time before equity tokens take a central role in the crypto finance industry.

In nutshell, An Equity token indicates ownership and control. Equity tokens buys you some amount of ownership and rights to the profit generated by the company, much like traditional stocks. Tokenized securities, also known as equity tokens or security tokens, represent a share in a company.