# kaal:claim:4021599-024

**Claim.** A utility token's value depends on its functions and therefore correlates with actual demand for the token, so a scaled up project with a high number of users usually yields increased utility token value, whereas a securities token's value correlates with the value of the issuing company.

**Type.** mechanism  **Support.** argued

**Source quote.**

> That is, a scaled-up project with a high number of users usually result in increased utility token value. By contrast, the value of securities tokens is often correlated to the value of the token issuing company.40

**From.** Wulf A. Kaal, *Securities Versus Utility Tokens* (2022), IV. Distinction between Utility Token and Securities Token, page 13

**Cite as.** Wulf A. Kaal, Securities Versus Utility Tokens (2022). SSRN: https://ssrn.com/abstract=4021599

**Verify.** sha256 of source PDF `bb03790af46b3710e306121cfae25f850e3e7477e0f95313af42b9feeb6bc0c4` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202022%20-%20Securities%20Versus%20Utility%20Tokens.pdf

**Topics.** tokenomics, economics, securities-law

**Keywords.** token-valuation, utility-token, securities-token, network-demand

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