In the world of digital assets, there are a variety of tokens that offer different rights and participation opportunities. Two of them are the stock token and the participation right token . Both have specific characteristics and each offer different advantages and disadvantages to investors.
In this blog post, we explain what the differences are and show why stock tokens bring many advantages – especially when it comes to tokenizing real estate assets and corporate investments.
What is a stock token?
A stock token is essentially a digitized share in a company based on a blockchain. Similar to traditional stocks, a stock token offers its holder:
Voting rights: Token holders can participate in company decisions.
Dividends: You are entitled to a share in the company’s profits.
Property rights: If the company is liquidated, stock token holders have a legal claim to a share of the company's assets.
Stock tokens digitize the concept of ownership of a company and make it tradable and transparent through blockchain technology.
What is a token for a profit participation right?
Unlike stock tokens, profit participation tokens do not offer ownership rights in the company. Instead, they are contractual agreements that give the holder an economic interest in the company - typically without voting rights. Key features include:
Profit sharing: Token holders have a right to share in the profits.
No liability: Profit participation certificate holders bear no risk in the event of losses incurred by the company.
Flexibility: Profit participation rights can be designed individually.
Stock token vs. profit participation token: The advantages at a glance
A key difference between the two tokens lies in the rights and participation in the company . Stock tokens offer the following key advantages:
Ownership rights: Stock token holders own real shares in the company and thus participate in the company's growth in the long term. Participation rights tokens, on the other hand, do not grant ownership rights.
Voting rights: Unlike profit participation tokens, which do not offer any co-determination rights, stock token holders can cast their vote on important company decisions.
Transparency and tradability: Stock tokens are easily tradable thanks to blockchain technology and ownership structures are transparent for all parties involved. Participation rights often require bilateral contractual agreements and are less flexible.
Potential for value appreciation: Since stock tokens represent shares in the company, their value can increase with the company's success. Participation rights tokens, on the other hand, have no direct increase in value, as they only participate in contractually agreed profits.
Tokenization of real estate assets and corporate investments
One particularly interesting aspect of stock tokens is their ability to actually tokenize real estate assets and corporate holdings . This allows real-world assets to be converted into digital tokens and traded via the blockchain. But what does this mean exactly?
Asset divisibility: Large assets such as real estate can be divided into small digital shares so that multiple investors can own them together.
Accessibility: Tokenization allows smaller investors who would otherwise not have access to large real estate or corporate holdings to invest in these assets.
Efficiency and transparency: All transactions are processed via the blockchain, enabling faster, more cost-efficient and transparent processes.
The tokenization of real estate and company shares via stock tokens opens up new opportunities for investors and revolutionizes access to traditionally difficult-to-access markets.
Conclusion: Why stock tokens are the future
Both stock tokens and profit participation tokens offer investors various opportunities to participate in the success of a company. However, stock tokens offer clear advantages in terms of ownership, voting rights, tradability and value appreciation potential . In particular, the possibility of tokenizing real estate and company shares makes stock tokens an extremely attractive financial instrument.
The future of digital assets belongs to equity tokens, which offer investors a flexible and accessible way to participate in a variety of assets – from companies to real estate.
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