English
RussianWhat Is a Token in Crypto? A Plain-English Explanation
A token is a digital unit issued on top of an existing blockchain such as Ethereum or Solana.
A coin like bitcoin or ether has its own blockchain; a token lives on someone else's. It is created by a smart contract, and the network simply records who holds how many. That is why any project can launch a token within minutes.
Tokens serve different purposes. Stablecoins such as USDT track the dollar. Governance tokens let holders vote on protocol changes. Utility tokens pay for services inside an app. Memecoins offer nothing beyond a bet on popularity.
Most tokens have part of their supply locked and released gradually, which is called vesting. Large unlocks often weigh on the price, so check the unlock calendar before buying.
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Frequently asked questions
What is the difference between a token and a coin?
A coin has its own blockchain (BTC, ETH, SOL); a token is issued on another chain by a smart contract (USDT, UNI, PEPE).
Who can create a token?
Anyone who can deploy a smart contract. That is why there are tens of thousands of tokens and most of them are worth nothing.