Tokens News

A token is a unit of value that is released by an organization and based on a blockchain, acting as an alternative for tasks when a cryptocurrency is unable to be used. Tokens exist digitally as a distributed record in the register of a blockchain. To understand tokens better, it is important to realize that they are to attract investors in an initial coin offering or ICO. While new Bitcoins are made through mining, new tokens are made by an individual or entity that already has Bitcoins or other kinds of digital money. Everyone can invest in a start-up with a guarantee of getting a share of the income from transactions. So here, tokens work as stock but does not give its owner managing rights in the company. Inside an application, tokens function as an internal currency for buying products and services and they facilitate the investment of fiat money into the cryptocurrency-related projects. Here they perform as debentures with a guarantee of profit in a fixed period of time.

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