{"id":8871,"date":"2023-05-13T15:57:51","date_gmt":"2023-05-13T15:57:51","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=8871"},"modified":"2025-09-10T15:27:32","modified_gmt":"2025-09-10T15:27:32","slug":"what-is-a-utility-token","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-utility-token","title":{"rendered":"What is a Utility Token?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-utility-token\/#utility_token\" >Utility Token<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-utility-token\/#the_utility_token_and_its_use_in_icos\" >The utility token and its use in ICOs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-utility-token\/#utility_token_issues_and_challenges\" >Utility token issues and challenges<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><div>Today I will talk about what a Utility Token is and how it differs from the rest of the tokens, in this way you can understand what purpose or value each one of them has.<\/div>\n<div><\/div>\n<div>But before understanding what a utility token is, it would be good to summarize in a few lines what a token is as a general concept:<\/div>\n<div><\/div>\n<div><em>\u201cA token is an object with a given value only within a context. The clearest example? The casino chips. These tokens are pieces of plastic that are worthless outside the casino walls, it is precisely in this context that their value is agreed and they end up being the representation of something. \u201c<\/em><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div>There are different types of tokens but they all represent something in a particular ecosystem. They can represent value, credits, voting rights, or whatever.<\/div>\n<div><\/div>\n<div>Now that we are more clear about what a token means, let\u2019s talk about what a Utility Token is.<\/div>\n<h2><span class=\"ez-toc-section\" id=\"utility_token\"><\/span><b>Utility Token<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>In the case of a Utility Token or Utility Token, it is a token whose main objective is not to generate expectations of obtaining economic benefits. It is aimed at offering a specific utility on a platform or application, which gives rights to the use of certain products or services.<\/div>\n<div><\/div>\n<div>A good example is the BAT (Basic Attention Token) token, which is used to access various services provided by the project. Among other things, it can be offered as a reward to reward content creators while using the Brave browser (eg if you like a tweet you can tip it in BAT).<\/div>\n<div id=\"image_1815280778\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1024x768.jpg\" sizes=\"(max-width: 1020px) 100vw, 1020px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1024x768.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-300x225.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-768x576.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1536x1151.jpg 1536w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2.jpg 1601w\" alt=\"\u00bfQu\u00e9 es un Utility Token? Bitnovo\" width=\"1020\" height=\"765\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1024x768.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-300x225.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-768x576.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1536x1151.jpg 1536w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2.jpg 1601w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2020\/09\/Que-es-utility-token_2-1024x768.jpg\" data-sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"the_utility_token_and_its_use_in_icos\"><\/span><strong>The utility token and its use in ICOs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>These types of token have also been used on many occasions to obtain financing for a new project or development in the so-called Initial Coin Offering or ICO (Initial Coin Offering).<\/div>\n<div><\/div>\n<div>People who want to launch a new business or project offer utility tokens to users who invest in it prior to launch.<\/div>\n<div><\/div>\n<div>Then both parties benefit, on the one hand the company manages to raise more money for the launch and users get great future post launch benefits.<\/div>\n<div><\/div>\n<div>For example, Filecoin raised $ 257 million through an ICO that post-launch allowed token owners to access its decentralized cloud storage platform.<\/div>\n<h2><span class=\"ez-toc-section\" id=\"utility_token_issues_and_challenges\"><\/span><strong>Utility token issues and challenges<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div>It is true that a Utility Token is an excellent resource to obtain financing for different types of projects but this also carries a risk that in many cases can be excessive.<\/div>\n<div><\/div>\n<div>This was the case during the ICO boom in 2017, where any project launched its own Initial Coin Offering to obtain financing and users invested in almost everything they saw.<\/div>\n<div><\/div>\n<div>Many of these projects promised to meet unattainable targets or lacked sufficient regulation. Thus, many people were exposed to losing part of their investments due to negligence or because the projects did not raise the necessary amount to start.<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div>The main problems of utility tokens can be summarized in 5 points.<\/div>\n<div><\/div>\n<div>\u2013 If the project does not work, the tokens lose all their value.<\/div>\n<div>\u2013 They do not encourage the adoption of cryptocurrencies<\/div>\n<div>\u2013 There is no \u201cnatural mechanism\u201d to increase the value of a token.<\/div>\n<div>\u2013 There are projects that cannot be financed and investors lose their contributions.<\/div>\n<div>\u2013 In many cases the creators of the projects have an excessively centralized power over the tokens and make decisions in an authoritarian way.<\/div>\n<p>From Bitnovo you can also buy some utility tokens, such as chiliZ ($ CHZ) than an ERC20 utility token on the Ethereum Blockchain and serves as digital currency within the platforms of chiliZ and Socios.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Today I will talk about what a Utility Token is and how it differs from the rest of the tokens, in this way you can understand what purpose or value each one of them has. But before understanding what a utility token is, it would be good to summarize in a few lines what a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6357,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[185],"tags":[],"class_list":["post-8871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/8871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=8871"}],"version-history":[{"count":2,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/8871\/revisions"}],"predecessor-version":[{"id":24786,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/8871\/revisions\/24786"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6357"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=8871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=8871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=8871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}