An equity token is a type of digital asset that represents ownership in a company or project. Unlike traditional tokens, which may offer utility or access to services, equity tokens are linked directly to financial assets, much like shares in a stock market.These tokens are typically issued during a fundraising process called a token sale or initial coin offering (ICO). Investors purchase equity tokens with the expectation of receiving returns based on the company’s profits or performance, similar to how shareholders benefit from dividends or stock price appreciation.Equity tokens are often subject to regulations and may come with specific rights, such as voting power in company decisions. They are usually built on a blockchain platform, ensuring transparency and security in ownership records. Overall, equity tokens provide a modern way for companies to raise capital while giving investors an opportunity to participate in potential financial upside.