Crypto Tokens

Crypto Tokens refer to Asset/">Digital Assets created and managed on a Blockchain, representing various Assets or utilities. Unlike cryptocurrencies like Bitcoin or Ethereum, which primarily function as a medium of exchange, crypto tokens can represent a wide range of Assets or services.

There are generally two main types of crypto tokens:

• Utility Tokens: These tokens provide users with access to a product or service within a specific ecosystem. For example, Binance Coin (BNB) allows users to pay for trading fees on the Binance exchange.
• Security Tokens: These represent ownership in a real-world Asset, such as Stocks or real estate, and are often subject to regulatory scrutiny. An example is tZERO, which offers security tokens backed by Equity.

Use cases for crypto tokens include:

• Accessing decentralized applications (dApps) and services.
• Facilitating Crowdfunding through Initial Coin Offerings (ICOs).
• Enabling Decentralized Finance (DeFi) applications.