A startup is designing a token that will be used both as a means of payment within its platform and as a way for holders to earn a share of platform revenues. The team is concerned about regulatory classification. Which classification is most likely to apply, and what is the primary regulatory implication?

Payment token, requiring money transmitter licenses

Security token, requiring compliance with securities regulations

Governance token, requiring no specific regulatory compliance

Utility token, requiring no securities compliance

What is a common compliance consideration for issuing a security token?

Guaranteeing that the token can be traded on all cryptocurrency exchanges.

Registering the token with relevant securities regulators or qualifying for an exemption.

Ensuring the token is non-fungible to avoid regulatory oversight.

Ensuring the token is mined using a proof-of-work consensus.

Which use case is most appropriate for a non-fungible token (NFT) rather than a fungible token?

Rewarding users with loyalty points that are all equal in value

Providing voting rights in a decentralized autonomous organization (DAO)

Representing ownership of a specific concert ticket with a unique seat number

Serving as a medium of exchange for everyday purchases

EC-CouncilBlockchain Developer Certification

Domain 4Objective 4

Types of Tokens and Digital Assets BDC Practice Questions (Page 4)

Part of the Cryptomining, Tokenization, and Digital Assets domain, which makes up ~10% of our current practice bank.

36questions here

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6concepts

Questions 16–20

16application · medium
A company is launching a token that gives holders a share of quarterly profits from its business. Which regulatory classification is most likely to apply to this token?
Select an answer first
17expert · hard
A startup is designing a token that will be used both as a means of payment within its platform and as a way for holders to earn a share of platform revenues. The team is concerned about regulatory classification. Which classification is most likely to apply, and what is the primary regulatory implication?
Select an answer first
18foundation · easy
A startup issues a token that grants holders access to its cloud storage service and allows them to pay for additional storage. According to the Token Taxonomy, how is this token best classified?
Select an answer first
19foundation · easy
What is a common compliance consideration for issuing a security token?
Select an answer first
20foundation · easy
Which use case is most appropriate for a non-fungible token (NFT) rather than a fungible token?
Select an answer first

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Types of Tokens and Digital Assets BDC Practice Questions (Page 4)

Questions 16–20

A company is launching a token that gives holders a share of quarterly profits from its business. Which regulatory classification is most likely to apply to this token?

A startup issues a token that grants holders access to its cloud storage service and allows them to pay for additional storage. According to the Token Taxonomy, how is this token best classified?

What is a common compliance consideration for issuing a security token?

Which use case is most appropriate for a non-fungible token (NFT) rather than a fungible token?

Keep studying — Cryptomining, Tokenization, and Digital Assets