In our previous article about ICOs, we defined utility tokens as a category of them and a very useful tool for financing technological projects.
More and more companies are using this means to undertake projects of different nature with a common element, which are mainly technological.
As a definition of "Utility token" and as a reminder, it defines as a use or a function that is offered within a given platform to make the purchase and use of services and/or products easier. As casino tokens, they are only valid within the casino facilities and of course are redeemable for official money once you leave the casino.
Usually behind any tokenization there is a cryptographic technology in the form of a blockchain. The etherium-based blockchain is normally used in most cases because it is the best possible token development scenario or framework as it can generate smart contracts easily. The most widely used tokens are the ERC-20 etherium-based tokens because of their relative easiness of development.
Particularly Mind Capital recently launched an utility token called "MCcoin" (Mind Capital Coin) which can only be used within its platform and which has the category of a NO-ICO, for the simple reason that it is not based on a public offering of cryptocurrencies within any exchange in question. Therefore, it cannot be transmitted outside the Mind Capital platform, nor exchanged for other cryptocurrencies except for the bitcoin when making withdrawals or reimbursements of purchases.
It is important to point out that the reference value of Mind Capital's Utility Token is the American dollar (USD), so it also has a category that can be similar to a stablecoin in one sense since it is referenced by this international currency. Nevertheless It should be noted that it is not a token backed by USD, which means that Mind Capital does not hold or create dollar reserves equal to the MCcoin units issued within the platform.
In short, the Mind Capital MCcoin is an Utility Token, NON-ICO (for internal and not public use) referenced by the USD (similar to a stablecoin in that sense) for the exclusive use of Mind Capital affiliates. Mind Capital does not hold USD to back the issuance of MCcoins.
It is important to clarify that even though it is an utility token only valid within Mind Capital Platform as a unit of account and value for purchases made by affiliates to this scheme, the balances reflected in the users' account are not simple book entries, but real balances held in bitcoin wallets waiting to be claimed by the affiliates using withdrawals to be sent to the users' wallets in a matter of seconds, so that they are really available and the system is totally integrated with the bitcoin blockchain. At the moment of every withdrawal, the currency exchange is done using the BTC/USD parity of the exchange where the bitcoin wallet is linked to the Mind Capital account in question.
The decision to use an utility token of these characteristics is based on the greater control that Mind Capital has since the value of the accounts is not directly subject to bitcoin due to its high volatility. By using this token, which can be similar to a stablecoin and has the same value as USD, we can enjoy a certain stability and greater control over the value of our accounts, since we can decide to reinvest and create a compound interest or withdraw or simply leave it in a balance referenced by a stable value.