Assets issued on a network.
WHAT A TOKEN IS
An asset defined by a program on a network, rather than by the network itself.
WHAT STANDARDS PROVIDE
Common interfaces, so wallets and applications handle any token alike.
WHAT FUNGIBLE MEANS
Units that are interchangeable.
WHAT NON-FUNGIBLE MEANS
Units that are individually distinct.
WHAT TOKENS ARE USED FOR
Representing currencies and assets Governance rights Access to services Rewards and incentives Representation of ownership
WHAT CREATING ONE REQUIRES
Deploying a program, which is trivially easy.
WHY THAT MATTERS
The existence of a token implies nothing about its legitimacy or value.
WHAT TO EXAMINE
Who created it What it entitles the holder to Total supply and distribution Whether the creator can issue more Whether transfers can be blocked
WHY THOSE LAST TWO MATTER MOST
They determine whether the holder actually controls anything.
WHAT MANY TOKENS PROVIDE IN PRACTICE
Nothing enforceable.
WHAT TO ASK
What happens if the issuer stops participating.
WHAT UTILITY CLAIMS FREQUENTLY OBSCURE
That the token exists to be sold.
WHAT REGULATORS INCREASINGLY ASSESS
Whether a token constitutes a security, regardless of its description.
