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The intended use of tokens is different from the use of crypto coins. They are digital assets that have been released to finance a project. They represent a value, service or product. There are also tokens designed for investment purposes. In this article, you can find detailed information about token types.What are the Token Types?Tokens are grouped under different headings according to their trading status. We can list the token types as follows;1-Utility Tokens; They are known as service tokens. They are not designed for investment purposes, but for the purpose of accessing the services or product of a company. They generally use ERC-20 infrastructure. If we explain the utility tokens with an example, you can liken them to the tokens which are valid in arcades. In short, you can compare it to all kinds of automation systems that work with physical tokens. The working principle in utility tokens is the same as these physical automation systems.Companies, institutions and organizations have started to switch to these utility tokens in order to provide easy access to their services and products. Fan tokens are the most popular token types in this field. Many sports clubs have produced their own fan tokens for buying match tickets and fan items.You can get Utility tokens through ICO (Initial Coin Offering). You can also consider it as an investment tool. 2-Equity Token; Equity and security tokens are of this type. The IPO (Initial Public Offering) application is similar to the traditional public offering system. Investors earn in this system in the same way as in the stock offered to the public. At the same time, they have the right to vote and have a say in company decisions because they participate in the system from the first stage of the project. Securities tokens are backed by real assets such as equity, shares of a limited liability company or property.3-Credit Token; As the name suggests, it is a type of token produced for credit purposes. Investors support the developing project by purchasing tokens. This transaction can be considered as a kind of lending. It is an alternative way to invest in a new generation. 4- NFT token; NFT stands for Non Fungible Token. Although the NFT token is actually a service token. It is different from the others in terms of the meaning it contains. NFT, in short, is an encrypted and unique token using blockchain technology. It works differently from Bitcoin, altcoins and tokens. The biggest features that distinguish NFT from others are; its uniqueness, immutability, originality and proprietary right. You can liken the NFT to a kind of digital collection. The works you have collected are unique in the world. Assets such as art works, paintings, card collections, snapshots and photos are converted to digital and turned into NFTs. Each NFT has its own digital certificate. Many NFTs that are sold at very high prices are an alternative source of income for investors in recent years.You can think of NFT as a kind of digital collection. But these works that you have accumulated have no other equal in the world. Works of art, paintings, card collections, snapshots, photos, etc. such assets are converted into NFTs by converting them to digital. Each NFT has its own digital certificate. For example, NBA star LeBron James&#39; 2006 dunk that was converted into an NFT was found to be a buyer for 208 thousand dollars.

What are the Token Types?

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