Crypto Trading: What are utility tokens?

By LeftFooted | bitcoinea | 6 Dec 2023


Utility tokens are tied to a certain blockchain or a certain project and the goal is to provide a certain type of utility.


For example, a utility token may offer discounts in term of fees, rewards or other benefits.


Filecoin is a good example.


Filecoin (FIL), is the utility token tied to the decentralised storage network Filecoin. FIL can be used to gain access to the platform's network and/or storage space.


CEX tokens often qualify as utility tokens, too.


For example, Cronos (CRO, for the crypto.com exchange) or Young (YNG, for the Young Exchange platform).


 

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LeftFooted
LeftFooted

I’m a left-footed duck that loves writing. I write about cars, watches, craft beer and, you’ve guessed it, crypto Also active on read.cash


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