Utility Token Definition - Glossary

Utility token is a digital asset granting access to specific services or products within a blockchain-based platform or ecosystem.

Utility token is a type of cryptocurrency used primarily within a specific blockchain ecosystem to access products or services. Unlike traditional currencies, utility tokens are not intended for direct investment. Instead, they serve a functional purpose within their native platforms. For instance, they might be used to pay for transaction fees, gain access to premium features, or participate in governance decisions. Utility tokens are typically created during initial coin offerings (ICOs) to raise funds for a project's development. Their value is often tied to the demand for the services or products they enable within the ecosystem.