What Are Crypto Tokens?

The phrase “crypto token” refers to a unique virtual currency token or the method by which cryptocurrencies are valued. These tokens are fungible and tradeable assets or utilities with their own blockchains. Crypto tokens are frequently used to collect funds for crowd sales, but they may also be used to replace other items. The typical initial coin offering (ICO) procedure, which comprises a crowdsourcing exercise to support project development, is used to generate, distribute, sell, and circulate these currencies.

Tokens are a representation of a particular asset or utility, that usually resides on top of another blockchain. Tokens can represent basically any assets that are fungible and trade-able, from commodities to loyalty points to even other cryptocurrencies!

Tokens are created and distributed to the public through an Initial Coin Offering (ICO), which is a means of crowdfunding, through the release of a new cryptocurrency or token to fund project development.Many are crazy over ICOs as they represent a great way of identifying interesting projects that can provide great financial returns.