Cryptocurrencies or crypto assets?

Cryptoassets

There is often confusion about cryptocurrencies in terms of being one of the types of virtual currencies or being one of the types of encrypted assets, as a large part of researchers and experts classify cryptocurrencies as a type of encrypted assets, and this is due to the presence of many circulated currencies that cannot be classified as currencies Purely encrypted, and this can be explained that these assets were not the primary purpose behind its creation to exchange them for money.

Encrypted assets are referred to as stored digital assets based on DLT, and they are also defined as encrypted digital representations of value or contractual rights based on DLT that can be transferred, stored or exchanged electronically.

There is also a common confusion between encrypted virtual currencies and the technology that is based on them, in addition to the confusion based on considering that encrypted virtual currencies are a currency in themselves or one of the types of encrypted assets. Therefore, in this part of the study, the differences between cryptocurrency and crypto-assets and the technology based on them will be clarified.

Types of Crypto Asset

Encrypted assets are divided into several types, although there is still a difference in their classification from one side to another in terms of the nomenclature and definition of types; Due to the novelty of these technologies and the immaturity of the general concept of them, the main types of encrypted assets on which most studies agree are the following:

Cryptocurrencies

The most famous type of crypto-asset is the famous "Bitcoin" currency, and this type was explained in the previous chapter of this study.

Utilities Tokens

Often issued by startups, where they create their own tokens and sell them to the public to raise the necessary funding through initial coin offerings (ICOs), these tokens give their owners access to current or future services and products, but it does not guarantee them the same rights guaranteed by some types of investments Although these tokens do not represent an investment in and of themselves, the definition of electronic money may apply to them in some circumstances, and they are often issued by a company or group of commercial activities and are committed to accepting them as payment for goods or services.

Securities Tokens

Under this type of assets, the symbols that represent a claim for debt or equity on the issuer, and these symbols are very similar to traditional securities in terms of return . These symbols also give their owner interests

Especially in a business, for example debt owed by a business or a share of profits in that business, these assets act as digital bonds that are traded between holders without any intermediaries

Due to a company or a share of the profits in this business, these assets act as digital bonds that are traded between holders without any intermediaries