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Utility token: Difference between revisions
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== Features of utility tokens == | == Features of utility tokens == | ||
Utility tokens are usually issued through an [[ICO|Initial | Utility tokens are usually issued through an [[ICO|Initial coin offering]], [[IDO|Initial DEX offering]], or [[IEO|Initial exchange offering]], where investors can acquire them in exchange for [[cryptocurrency|crypto]] or [[fiat|fiat currency]]. They are used to incentivize users to utilize the platform ("loyalty program") and play a crucial role in the [[network]]'s operation. For example, token holders with a certain amount of tokens may have the right to participate in blockchain development [[voting]] or gain access to unique features. Utility tokens can also be used as units of user rewards for performing actions or providing services on the platform<ref>[https://coinmarketcap.com/academy/utility-token-definition/ Utility Token Definition | CoinMarketCap] (RU)</ref>. | ||
The use of utility tokens is limited to the specific platform for which they are intended. For instance, the [[BTT|BTT token]] operates within the ecosystem of the [[Bit.Team]] [[cryptocurrency exchange]]. Utility tokens are not intended for use as investments since they do not grant ownership [[stake]]s in the issuing company's assets<ref>[https://iqdecision.com/difference-between-utility-tokens-and-security-tokens/ Difference Between Utility Tokens and Security Tokens | IQ DECISION] (RU)</ref>. | The use of utility tokens is limited to the specific platform for which they are intended. For instance, the [[BTT|BTT token]] operates within the ecosystem of the [[Bit.Team]] [[cryptocurrency exchange]]. Utility tokens are not intended for use as investments since they do not grant ownership [[stake]]s in the issuing company's assets<ref>[https://iqdecision.com/difference-between-utility-tokens-and-security-tokens/ Difference Between Utility Tokens and Security Tokens | IQ DECISION] (RU)</ref>. | ||