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Security Token

A Security Token is a cryptocurrency whose characteristics are similar in use as a financial security.

If holding the token gives rights similar to holding a stock, it shall be classified as a security token.

The most common features of a security token are voting rights in a lucrative organization, the right to interest on the profits generated by the project and token activity, and the binding of a piece of property on the project to the token.

Note that these elements can apply to an NFT as well.

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