Enable simple Token based authorization in Web API

Set /token endpoint for request token

using Microsoft.Owin;
using Microsoft.Owin.Cors;
using Microsoft.Owin.Security.OAuth;
using Owin;
using System;
using System.Collections.Generic;
using System.Configuration;
using System.IdentityModel.Tokens;
using System.Linq;
using System.Web;
using System.Web.Http;
using MyApp.Providers;

[assembly: OwinStartup(typeof(MyApp.Startup))]
namespace MyApp
{
    public class Startup
    {
        public void Configuration(IAppBuilder app)
        {
            // Allow cross domain access
            app.UseCors(CorsOptions.AllowAll);

            OAuthAuthorizationServerOptions OAuthServerOptions = new OAuthAuthorizationServerOptions()
            {
                AllowInsecureHttp = true,
                TokenEndpointPath = new PathString("/token"),
                AccessTokenExpireTimeSpan = TimeSpan.FromDays(1),
                Provider = new MyAuthServerProvider(),
            };

            // Token Generation
            app.UseOAuthAuthorizationServer(OAuthServerOptions);
            app.UseOAuthBearerAuthentication(new OAuthBearerAuthenticationOptions());

            // Important: Enable Suppress redirect to login page if token is invalid
            app.Use((context, next) =>
            {
                HttpContext.Current.Response.SuppressFormsAuthenticationRedirect = true;
                return next.Invoke();
            });

            var config = new HttpConfiguration();
            WebApiConfig.Register(config);
            app.UseWebApi(config);
        }
    }
}

Define MyAuthServerProvider()

using Microsoft.Owin.Security.OAuth;
using System;
using System.Collections.Generic;
using System.Linq;
using System.Threading.Tasks;
using System.Web;
using System.Security.Claims;
using MyApp.Models;
using Newtonsoft.Json.Linq;

namespace MyApp.Providers
{
    public class MyAuthServerProvider : OAuthAuthorizationServerProvider
    {
        public override async Task GrantResourceOwnerCredentials(OAuthGrantResourceOwnerCredentialsContext context)
        {
            // validate username by username/password using your custom logic
            bool isValid = ValidateUser(context.UserName, context.Password);

            if (isValid)
            {
                var identity = new ClaimsIdentity(context.Options.AuthenticationType);
            identity.AddClaim(new Claim("sub", context.UserName)); 
            identity.AddClaim(new Claim(ClaimTypes.Name, context.UserName));
            identity.AddClaim(new Claim(ClaimTypes.Role, "user"));

            context.Validated(identity);
            }
            else
            {
                context.SetError("invalid_grant", "The user name or password is incorrect.");
                return;
            }
            
        }
    }
}