utility token

noun

: a digital token of cryptocurrency that is issued in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency

sold utility tokens as a method of fundraising for the start-up

Examples of utility token in a Sentence

Recent Examples on the Web

At this point, the cryptocurrency, which is a utility token, was up roughly 53% after falling below $240 in mid-December, additional CoinMarketCap data reveals. —Charles Lloyd Bovaird Ii, Forbes, 16 Feb. 2024

Just for level setting, talk to us about the difference between a fungible utility token and a non-fungible utility token. —Tax Notes Staff, Forbes, 28 Nov. 2023

And then utility tokens, which can be fungible or non-fungible. —Tax Notes Staff, Forbes, 28 Nov. 2023

As a utility token, $ESX provides a mechanism for participation in the platform, not just as an investment vehicle but also as a tool for governance. —Nick Kasmik, USA TODAY, 23 Aug. 2023

Here’s a breakdown of what these crypto financial instruments entail: BNB is a token issued by the exchange which was initially created as a utility token that offer discounts on trading. —Nate Dicamillo, Quartz, 6 June 2023

Word History

First Known Use

2016, in the meaning defined above