The term cryptocurrency is typically used as a broad general term to cover different types of virtual assets. Two of the most common cryptocurrencies are crypto coins and crypto tokens. Crypto coins are most commonly used as a store of value, and typical examples of crypto coins include Bitcoin (BTC), Dogecoin (DOGE), and Litecoin (LTC). Crypto tokens refer to a class of cryptocurrency that typically has additional properties beyond being a simple digital currency. One popular type of token is what is called a “Utility token” which has special properties and specific uses inside of a particular cryptocurrency ecosystem. Utility tokens are often used to help finance or capitalize on a new project. Most utility tokens are non-mined and are pre-mined or all created in a single batch for later distribution based on rules set up by the project leaders.
NFT Term
Utility Token
Definition of Utility Token from the NFTguild.com glossary.
