{"id":39274,"date":"2022-11-09T22:36:01","date_gmt":"2022-11-09T21:36:01","guid":{"rendered":"https:\/\/www.coinpro.ch\/glossar\/utility-token\/"},"modified":"2025-08-08T10:00:16","modified_gmt":"2025-08-08T08:00:16","slug":"utility-token","status":"publish","type":"encyclopedia","link":"https:\/\/www.coinpro.ch\/en\/glossary\/utility-token\/","title":{"rendered":"Utility Token"},"content":{"rendered":"

Utility tokens are a form of cryptocurrency<\/a> that can be used to access certain services or products in a blockchain network<\/a>. They represent the majority of tokens<\/a> issued in Initial Coin Offerings (ICOs)<\/a>. Unlike security tokens<\/a>, which are considered securities and give investors a stake in the company, utility tokens give users access to certain features or services within a specific ecosystem. <\/span><\/p>\n

Utility tokens are used to entitle token holders to access certain functions or services in a blockchain network<\/b>. These functions can, for example, enable access to certain applications or services within an ecosystem, such as access to decentralized exchanges or other dApps (decentralized applications)<\/a>.<\/span><\/p>\n

Utility tokens are usually sold during a token sale<\/a>, where the developers sell the tokens to investors to finance the project. Investors can then use the tokens to use the services or functions within the network. <\/span><\/p>\n

How Utility Tokens Work<\/h2>\n

Utility tokens are normally created and issued on a blockchain. Unlike security tokens, which are considered securities and are subject to strict regulatory requirements, utility tokens are generally not bound by traditional securities laws. <\/span>Instead, they serve as vouchers or tickets for certain functions or services within an ecosystem<\/b>. However, this also means that, unlike security tokens, they do not represent any participation in a company. Thus, holders of utility tokens also have no co-determination rights or claim to a share of the profits. <\/span><\/p>\n