Utility Token

Utility tokens in the cryptocurrency space are tokens created for a specific purpose within a blockchain ecosystem. They are not considered financial instruments; therefore, they are not subject to the same regulations as securities. They are rewarded as incentives to the participants who provide various services to the blockchain ecosystem.

Utility token holders also have the right to vote in governance-related decisions within the network. These tokens are generally released during ICOs and IDOs, where investors can buy them in exchange for crypto or fiat currencies.