Security tokens generally aren’t going to work as utility tokens. There’s a fundamental conflict: security tokens should go up in price, utility tokens need to generally go down.

Why is that? Because if utility tokens go up in price, it will mean people will not use the service. In some cases, that might create a self-regulating market. But if a token is both a security and a utility, there are going to be some conflicting forces on it’s value which will frustrate those using it as a security and those using it as a utility.