Utility Tokens
A utility token gives access to a product or service within a specific platform, like a voucher or credit.
In depth
Examples include tokens that pay for storage on a decentralised network or discounts on an exchange. Their value is meant to come from demand for the underlying service, not from ownership of the company. Regulators scrutinise whether a "utility" token is really an unregistered security.
Why it matters
Most tokens you will encounter claim to be utility tokens; understanding the claim helps assess the risk.