During the last two years, the ICO industry has experienced a surge in popularity as a fundraising method for businesses. In 2017, startup companies raised $6,5bn through ICOs as way of financing their business endeavour. However, as the ICO industry continues to develop, further regulations are required to distinguish between a security token and a utility token. Companies wishing to fundraise their startup capital issue two types of token to investors — security tokens, and utility tokens.