A utility token is a digital asset that is used to fund the network by offering its buyers the guarantee of being able to consume some of the network’s products.
Utility tokens, unlike security tokens and stocks, do not confer ownership rights over a portion of a company.
Utility tokens should not be confused with coins (Bitcoin, Ethereum, Bitcoin Cash or Litecoin, etc.), as they are not mineable and are based on a third-party blockchain. However, like coins, utility tokens are only valued for their inherent functions and properties.
