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A token is a unit of value that represents multiple facets, such as monetary value, voting influence et al, in a blockchain network. Blockchains do not necessarily need a token to function - IBM’s Fabric and R3’s Corda are examples of two blockchains that eschew tokens. 

Although blockchain networks can function without the need for a token, these networks lose much of the benefits that come with the use of a token - user incentivization, for example. However, it is true that some enterprise level permissioned networks would gain benefit from simply deploying a distributed ledger without a token.

Several kinds of tokens exist, though they have informally been categorized as being either utility tokens or security tokens. Utility tokens are those that let a user further avail a platform’s services or products - Basic Attention Token (BAT) is a good example of a utility token. Security tokens are more like traditional investments - these tokens are those for which the user expects some kind of return after a period of time.  

Another important element of a digital token is the fact that it can be used as a virtual representation of a physical or traditional asset, such as gold, real estate and commodities. This has several benefits for the investor. 

By tokenizing a piece of land or gold into fractional, digital units, it allows investors to make a fractional investment in the asset, affordably and conveniently, as they do not have to pay a large sum or worry about maintenance and possession. This is perhaps the most discussed property of tokens.

Tokenomics: the Сrypto Project Research Essential

8 Jun 2023 3 minute read 5 comments SimpleSwap

While doing research on crypto projects, it is simply impossible to ignore such a phenomenon as tokenomics. The word itself comes from the two terms – "token" and "economy". You’ll often encounter this word in the Web3 space. But what is it and why i...

Tokenless Protocols on Aptos: The Next Big Opportunity in Crypto?

15 Jan 2024 2 minute read 1 comment Cryptofab

If you missed out on the JitoSOL airdrop, don’t worry, you're not alone. But that doesn’t mean you have to miss out on the next big opportunity to make some serious gains in the crypto space. While airdrops can be a great way to get involved in new p...

Where's All This Money Coming From? Who is behind JUP, TIA, and Other Tokens Given To Early Users?

2 Feb 2024 1 minute read 3 comments Cryptofab

I've been on this wild ride discovering free money through airdrops, especially with projects like JUP, PYTH and TIA. So, you might be wondering, where's all this cash coming from? As I dug deeper, I found that it often stems from a combination of ve...

Understanding ERC-20: The Standard for Tokenized Economies

27 Jun 2023 4 minute read 0 comments

In the world of blockchain and decentralized finance, ERC-20 has emerged as the most widely adopted standard for creating and managing tokens on the Ethereum network. ERC-20, short for Ethereum Request for Comment 20, has revolutionized the tokenizat...

Venture Crypto Investments: What Are SAFT and Token Warrants

30 Nov 2023 3 minute read 0 comments SimpleSwap

Investing in cryptocurrency projects has evolved. Nowadays, more security measures are being developed to safeguard investors' assets. Take for example the emergence of Simple Agreement for Future Tokens (SAFT), providing scrutiny for both – startup...

Hold Up! Is That New Crypto Project Legit Before You Click "Connect"?

26 Feb 2024 1 minute read 2 comments Cryptofab

Remember how we talked about those potential Linea and Scroll airdrops? I know, exciting stuff! But some of you reached out, though, saying it's tough to trust brand new projects, especially with all the scams out there. That's why I wanted to share...

The Gold Backed Digital Token Is Here!

3 Nov 2023 4 minute read 6 comments SweptOverNiagara

Thanks for dropping by. Please subscribe if you haven't yet! HSBC Launches Digital Token One of the largest banks in the world with more assets ($3T) than any European bank has announced it is launching Evolve, a distributed ledger technology trading...

Types Of Cryptocurrencies, Explained

28 Aug 2023 10 minute read 0 comments CryptoManiaks

Key Takeaways: The cryptocurrency market continues to evolve, with new digital currencies constantly being introduced. This brings about new opportunities but also poses challenges for the sector.  Cryptocurrencies have roots in the centuries-old go...

BlackRock launches BUIDL, tokenized asset fund on Ethereum, while the ETF remains on hold

22 Mar 2024 1 minute read 0 comments KMatt

Asset management giant BlackRock has entered the world of tokenization with the launch of BUIDL, a tokenized asset fund on the Ethereum network. The fund, denominated in US dollars, will invest in cash, US Treasuries and repurchase agreements, offeri...

The tokenization of assets: A risky financial revolution

10 Dec 2023 1 minute read 0 comments From0To10K

Tokenization, a revolutionary concept based on blockchain technology, is transforming the traditional financial sector. This innovation enables the conversion of assets into digital representations, promising greater speed, increased liquidity, and u...