What does the token in the currency circle mean?

Tokens represent digital assets on the blockchain and are divided into the following categories: Tokens: used for platform services or functions. Security tokens: represent equity or income rights in an asset or project. Governance Token: Grants the right to participate in project management and decision-making. Stablecoin: Linked to legal currency to maintain stable value.

What is a token?

In the field of blockchain, token is a general term that represents a digital asset issued on a specific blockchain network.

Token types

According to different uses and functions, tokens can be divided into the following categories:

• Utility Token: Functional token used for a specific platform or service ecosystem currency. Holders can enjoy the services or functions provided by the platform.
• Security Token: A token that represents equity or income rights to an asset or project. They are similar to traditional stocks and are regulated by securities regulations.
• Governance Token: A token that grants holders the right to participate in project management and decision-making. Holding more tokens usually means having greater voting power.
• Stablecoin: Tokens pegged to fiat currencies and designed to maintain a stable value. They are used to mitigate volatility in the cryptocurrency market.

Token Issuance

Tokens can be issued through an Initial Coin Offering (ICO) or other financing methods. In an ICO, the project team sells tokens to investors to raise funds.

Token Trading

Tokens can be traded on cryptocurrency exchanges or decentralized exchanges (DEX). Holders can sell the tokens to other users or use them to pay for goods or services.

Token Applications

Tokens have a wide range of applications in the blockchain field, such as:

• Access decentralized applications (dApps)
• Participate in the governance of the blockchain network
• Purchase goods or Services
• Store value
• Transfer and pay

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