In the context of cryptocurrencies, a token refers to a digital asset that is issued and traded on a blockchain network. Tokens are typically created and distributed through an initial coin offering (ICO) or a similar fundraising mechanism.
Unlike traditional cryptocurrencies like Bitcoin, tokens are not intended to function as a form of currency. Instead, they serve a specific purpose within a particular ecosystem or application. For example, some tokens may represent access to a particular service, while others may represent ownership in a particular asset.
Tokens can be created on various blockchain networks, including Ethereum, Binance Smart Chain, and many others. They are typically designed to be interoperable with other tokens and can be exchanged or traded on various cryptocurrency exchanges.
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