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  1. Home
  2. /Glossary
  3. /Utility Token
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cryptocurrency

Utility Token

A token that provides access to a product or service rather than representing ownership.

Definition

A token that provides access to a product or service rather than representing ownership. Game tokens, payment tokens, and access tokens are all utility tokens. The distinction from securities is legally important but often fuzzy.

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Related Terms

Token

A digital asset created on an existing blockchain rather than its own chain.

Tokenomics

The economic design of a token including supply, distribution, utility, and incentives.

Address Poisoning

A scam where attackers send tiny transactions from addresses that look similar to ones you've interacted with, hoping you'll accidentally copy the wrong address from your transaction history.

AI x Crypto

The intersection of artificial intelligence and blockchain technology.

Airdrop

A marketing strategy where crypto projects distribute free tokens to wallet addresses.

Airdrop Farming

Strategically using protocols before they launch a token to qualify for free airdrops.

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