![mobu-logo-tall.png](https://cdn.steemitimages.com/DQmU3oTrZ3pmrisiFoBLC6Azy9aWVcDG5Jvs69sqECVFTd1/mobu-logo-tall.png) This is my entry for the sponsored writing contest organized by @monajam . You can find the contest [HERE](https://steemit.com/contest/@monajam/205-steem-dollars-writing-contest-mobu) Of late, there have been frequent developments around cryptocurrencies and ICO’s which necessitates the need to create more awareness about how these ICO’s are actually structured. In this article, you will read about: - **The difference between security and utility tokens.** - **The challenges faced by businesses that try to raise fund through security tokens.** - **How [Mobu](https://www.mobu.io/) will facilitate the release of security tokens on the blockchains and the solution it offers to protect investors.** ## Utility Token . Utility tokens are the kind of tokens designed to represent future access to the company’s products and services. It is not investment in the literal sense of it. These features exempt it from federal laws and other governmental concerns. One instance where utility tokens take the stage is when a startup company wants to attract potential clients before the launching of whatever services it intends to offer. They sell digital coupons to these clients. An example is [Filecoin](https://filecoin.io/) . They raised as much as $257 million through the sale of utility token ## Security Token . On the other hand, security tokens are those tokens, such as cryptocurrencies, that derive their values from tradable assets and such values are heavily influenced by things that are factored around external forces. So basically, security token is more of investment contract where stakeholders speculate for profit. Because of these qualities, security tokens are subject to security regulations and the respective companies are liable to being penalized if found reneging on the binding security provisions. ## The Challenges Faced by Businesses that Try to Raise fund Through Security Tokens . During the Initial Coin Offering (ICO), companies are made to conform to laws and regulations as provided by relevant security bodies and this brings lots of restrictions on who can invest and trade the tokens. Consequently, these regulations have imposed various degrees of unfavorable limitations on companies who wish to raise fund through ICOs and, in some cases, they ended up violating some aspect of these rules, actions which are always met with the stipulated punishment and as a result, the intended projects are always hampered, if not killed. However, with a blockchain technology, the case is different. Companies do not necessarily face these problems that are associated with governmental regulatory policies. ICOs on the decentralized blockchain technology are where the interest of companies and investors are equally secured. This technology has proffered a solution too tempting for any company willing to raise fund through ICO to ignore. This is where [Mobu](https://www.mobu.io/) comes in! ## What is Mobu? . [MOBU](https://www.mobu.io/) is a blockchain platform, developed for business owners to conveniently carry out their ICOs without unnecessary interference from security bodies. Mobu provides a structure that guarantees the safety of both companies and investors, part of which is done through verification of buying and selling of tokens by the means of escrow services. In addition, Mobu has made provisions for exceptional smart contracts through which it allows the extension of the security ICO tokens. It also contains certain unique codes: MOBU ERC20 platform and the MOB20 standard needed to conform to the standards and requirement of Mobu. To the users of the platform, Mobu offers lower fees, reduced complexities, and ready-made code for offering their security ICOs to the market. It equally offers the following solutions to business owners: - Easy-to-use platform It takes away the restrictions imposed on business owners by regulatory agencies. - Easy release of security tokens that are backed by real assets. - Smart contract codes that conform - MOBU ERC20 platform and the MOB20 standard. - Availability of authorization centers for KYC/AML compliance. - Availability of authorization centers for SEC approval for securities [reg CF, reg 504, reg 506(b), 506(c)]. - Escrow services and easy pulling out of the contract if the ICO is not following there stipulated roadmap. - Ensures higher overall ROI for investors and creates a network that boosts confidence and trust to ensure economic efficiency and incentivizes community growth. ![mobu.png](https://cdn.steemitimages.com/DQmbm5TUFbz1kd3bHmrq68kcjgMTE6So8TCH7f2NfzCmtbq/mobu.png) It is worthy to note that Mobu will distribute its own token. It is the main token that conforms to a MOBU ERC20 platform and a MOB20 standard. With Mobu Token, the Mobu marketplace will be created to ensure that trading is done under a fully regulatory compliance to the guidelines, created to provide security to both companies and investors on MOBU. This token will be traded on approved exchanges and it can as well be used to access services. MOBU has firmly experienced team, with Juan Engelbrecht as the CEO. They work pretty hard towards bring everything to fruition. ![juan.jpg](https://cdn.steemitimages.com/DQmYy9YeDdmpkR8BRtb8mAbe8f9FbvJ3hDCYoQ5rwwQxcXv/juan.jpg) Juan Engelbrecht (CEO) ## Conclusion Evidently, MOBU offers the solutions companies have begging for in their ICOs because certainly, none will be willing to be held down again by arbitrary regulatory policies by any agency. One great thing about blockchain technology is its decentralized nature. Companies will now enjoy dynamic approach to business activities. --- https://www.youtube.com/watch?v=OEkbAX_hu_4 ###### This short video sheds more light on the concept and promises of MOBU. ## References [Website](https://www.mobu.io/) [Whitpaper](https://www.mobu.io/assets/mobu_whitepaper.pdf?80172489074) [Team BOBU](https://icobench.com/ico/mobu/team) [LinkedIn](https://www.linkedin.com/authwall?trk=ripf&trkInfo=AQF_Py0t-rDTfgAAAWS0SpDYyUHn6YH61ep33DK7VdPwZiORHsizSj6zy664MkJ7pf8RsMKz-5OmiNj-f-zve9yfsX_zztERpuLIaN2epM09_d3H34ZPxKKFfQbMQP69GalzgbY=&originalReferer=&sessionRedirect=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Fmobuico)