Coin and Token Use Cases
Last updated
Last updated
A coin is a native currency of a network such as BTC of Bitcoin and ETH of Ethereum. While tokens are cryptocurrencies minted on a blockchain such as ERC20 tokens on Ethereum.
The utility of the coin/token should be perfect. A coin becomes valuable if there's a ton of usage on the network or transactions using the token.
Store of Value or Digital Gold - There are coins or tokens that don't have supply inflation. BTC is the best example with 21,000,000 in total supply forever.
Network Coins or Gas Fees - coins users use to pay the network to process transactions on the blockchain. Examples: - BTC on Bitcoin - ETH on Ethereum - MATIC on Polygon
Stable Coins - tethered with a fiat currency such as USDT, USDC, and BUSD.
Exchange Tokens - a token that will give you discounts when you use it to pay for trades on crypto exchanges. Examples: - BNB on Binance - FTT on FTX
Governance Tokens - can be used by the community to create and vote on project proposals such us AAVE and UNI.
Membership Tokens - tokens that give users incentives such as Travala's AVA and StormX's STMX. AVA tokens provide special offers on accommodations and STMX multiplies the cashback on online purchases when you increase your holdings.
Other unique use cases:
Toncoin
By Telegram
Use to buy a dedicated number
No simcard sign-up
Source:
---
❤️ Thank you so much for reaching this far. Tell me what you think on Instagram @benjtupas and support this blog by checking the best travel, crypto, and tech deals here: