A token is a digital identity for something that can be owned – a cryptographic address on a blockchain, which is accessible by the person who has the private key for that address. Some tokens represent an asset or utility that a company has and they usually give them away to their investors during a public sale called ICO.
Do tokens have different types?
There are two broad categories:
– security tokens (this type is to some extent similar to securities)
– utility tokens (this type gives its holders access to services provided by the project).
Another category that can be emphasized might be called Payment tokens — this type has its own Blockchain and is often considered as a means of payment.
What does tokenomics mean? Token economics is the allocation of tokens to modify (or incentivize) specific behaviors to create strong communities with the underlying goal of creating a valuable crypto asset(s).