One more time: Crypto Coins vs Crypto Tokens.

 In Articles, Cryptocurrency

The term coin refers to any cryptocurrency that has its own separate, standalone blockchain. The term token or digital tokens refer to any cryptocurrency that is built on top of an existing blockchain.

So if you are doing a project and want to raise money, and you are selling a token it is like CrowdFunding on Kickstarter, but instead of getting a thing plus a T-shirt, you get tokens for your support.

If your goals are to change the world and eliminate the oppression we are living under through regulations and government control, you create a Coin.

I know that most coins are just modded Bitcoins and that is ok, but the value of those coins are of course directly linked to the value of Bitcoin.

There are then Coins that has picked up the torch the Satoshi dropped and where the dev teams have been working hard to create coins that retain the level of privacy, security, and speed envisioned by the cypherpunk movement at the beginning of the Internet era.

If a project is based on a Token, it is a crowdfunding project, see it as a Kickstarter projects with some extra regulations, and just like Kickstarter projects the key to success is marketing, and a lot of time the projects do not need a crypto to work, so the Tokens are just gifts for your support, the exception here being utility tokens, that’s used to access a pay for a specific service that can only be paid for with that utility token. Any Token based project should make clear if they are a support token or a utility token, and what Blockchain they are based on. Not that the Blockchain matters that much if it is a support token, as you know, it has no utility :).

 

 

 

Recent Posts