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Utility Token

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A cryptocurrency called a utility token is primarily made to allow users access to and use of a particular blockchain network or decentralized application (dApp). Utility tokens do not represent ownership in an underlying asset or business, in contrast to security tokens.

Instead, they give customers access to specific blockchain ecosystem features, services, or functionalities. Examples of utility tokens are BNB Coin (BNB), which may be used on the Binance exchange for a variety of purposes, including lowering trading fees, and Ethereum’s Ether (ETH), which is used to pay for transaction fees and the execution of smart contracts.