Token

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 the 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 mean 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).‬

Interesting facts

  • Investor’s interest in buying the tokens are
    – expected return

    – use of a service
    – to make payments
    – rise in value
    – earning of additional tokens
  • The tokens may be eligible for global trading depending on their set up, which means as long as you have a wallet you trade from anywhere in the world
  • You can buy a token with a coin, but not vice versa

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Date published

April 25, 2019