When we talk about our ICO, we get this question very often, particularly from those who are new in the crypto-world and have chosen us as a first ICO.
In case you want to know:
A utility token represents access to a future product or service. When you buy a utility token, you are buying your right to use a service thats being developed by a company or start-up, once its finished and launched. An ICO for utility tokens is often used to raise funds for the development of a project.
Can dividend also be counted as utility?
If the utility of a token is merely to pay a dividend, then it's not a utility token. It's pretty much an unregulated security at that point. At least I wouldn't expect the SEC to classify such a token as a utility token but rather as a security.