VWC Coin

What is an STO ?

An STO, also known as a Security Token Offering, is a digital token supported by blockchain technology that represents a stake in an asset. STOs enable digital funding, while still complying with government regulations. Security tokens require extensive regulations, so they are not traded on regular token exchanges. However, they are similar to ICOs (initial coin offerings) in that they are fungible tokens, meaning that they hold monetary value.  

STOs function as digital representations of real-world assets, like bonds, stocks, or even gold. Because of this, security token offering services enable asset tokenization for many businesses.  

STOs (security token offerings) were created in response to the ICO (initial coin offering) bubble burst in 2018. After the crypto market cap fell by over $750 billion, regulatory bodies began emphasizing more secure legislation for tokens. Some ICOs disliked the change from flexible utility tokens to securities. STOs were created as tokens that would comply with the relevant laws and regulations for securities.  

Security tokens are similar to the certificates issued for stocks. For stocks, ownership information is entered into a document as an official certificate of ownership. For security tokens, similar information is recorded, the major difference being that it is recorded on the blockchain and represented by a token.  

Types of security Tokens

Equity Tokens

Almost everything about an IPO and an STO equity token is the same as they both represent shares in a company. Equity token holders are similarly entitled to a company’s profit, and even have the right to vote like a shareholder. The main difference between a traditional stock and an equity token is how the ownership information is recorded. 

Asset-Backed Tokens

Asset-Backed Tokens represent real-world assets, like real estate or art. These tokens use the blockchain to securely save a record of these assets. These tokens not only provide a secure transaction record but can also retain value which means that the token can itself act as a digital asset.   

Debt Tokens

Debt tokens work like short-term loans that investors give to a company. The contract created for this loan will exist on the blockchain network and act as a security for the debt. The price of the debt token will be largely dependent on the dividend model and risk involved in the loan.  

Utility / Digital Asset token

Vuco World Coin (VWC) is a digital asset token which is enabled to be used inside Vuco World to do the payment of digital assets, land and services. It is built on Ethereum in accordance with the ERC20 standard for tokens. 

VWC will be used as a native crypto currency for Vuco World Metaverse 

VWC can be bought and sold for fiat currency or other digital currencies. 

VWC can be stored in digital wallets and exchanges like Crypto Cap Trades 

Tokens — which can also be referred to as crypto tokens — are units of value that blockchain-based organizations or projects develop on top of existing blockchain networks.  While they often share deep compatibility with the cryptocurrencies of that network, they are a wholly different digital asset class.

Cryptocurrencies are the native asset of a specific blockchain protocol, whereas tokens are created by platforms that build on top of those blockchains. For instance, the Ethereum blockchain’s native token is ether (ETH). While ether is the cryptocurrency native to the Ethereum blockchain, there are many other different tokens that also utilize the Ethereum blockchain. Crypto tokens built using Ethereum include DAI, LINK, COMP, and CryptoKitties, among others. These tokens can serve a multitude of functions on the platforms for which they are built, including participating in decentralized finance (DeFi) mechanisms, accessing platform-specific services, and even playing games.

Staking

Crypto staking involves “locking up” a portion of your cryptocurrency for a period of time as a way of contributing to a blockchain network. In exchange, stakers can earn rewards, typically in the form of additional coins or tokens. 

Staking can be a great way to use your crypto to generate passive income, especially because some cryptocurrencies offer high interest rates for staking.

Staking is when you lock crypto assets for a set period of time to help support the operation of a blockchain. In return for staking your crypto, you earn more cryptocurrency. Many blockchains use a proof of stake consensus mechanism. Under this system, network participants who want to support the blockchain by validating new transactions and adding new blocks must “stake” set sums of cryptocurrency. Staking helps ensure that only legitimate data and transactions are added to a blockchain. Participants trying to earn a chance to validate new transactions offer to lock up sums of cryptocurrency in staking as a form of insurance. If they improperly validate flawed or fraudulent data, they may lose some or all of their stake as a penalty. But if they validate correct, legitimate transactions and data, they earn more crypto as a reward.

 

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