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Token vs Coin: What are the differences?

5 min read -June 11, 2024 by Dat Nguyen

 Token vs Coin: What is the difference?

Token vs Coin: What is the difference?

What is the difference between Coin and Token is a common question for people who are new to this market. In fact, it is important to have a deep understanding on the differnce of Coin and Token before research and invest in any crypto project. Via this blog post, Let’s go deep dive into the key points of Coin and Token.

1. The definition of Coin and Token

1.1. What is Coin?

A coin is a digital currency that operates independently on its own blockchain. Each coin is part of a larger network designed to store and transfer value securely. Bitcoin (BTC) and Ethereum (ETH) are prime examples of coins. They serve as digital cash, facilitating transactions across their respective networks. Coins are often used for peer-to-peer payments, acting as a medium of exchange, and sometimes even as a store of value, similar to traditional money.

Differences of Coin and Token

Differences of Coin and Token

1.2. What is Token?

A token, on the other hand, is a digital asset created on an existing blockchain, such as Ethereum. Unlike coins, tokens do not have their own independent blockchain. Instead, they rely on the infrastructure of an existing network. Tokens can represent a variety of assets or utilities, from granting access to a specific service (utility tokens) to representing ownership stakes in a project (security tokens) or even physical assets (asset-backed tokens). Examples include Tether (USDT), Chainlink (LINK), Uniswap (UNI), and ATOK (M2E).

2. The different functions of Coin and Token in the crypto world

2.1. What are the functions of Coin?

Coins primarily function as digital currencies and are designed to serve several interconnected purposes. Firstly, they store value, acting like digital gold, with Bitcoin being a prime example. Secondly, they facilitate the transfer of value between parties as a medium of exchange, much like traditional money. Additionally, they serve as a unit of account, enabling the measurement of the value of goods and services. Lastly, coins play a crucial role in network security, as some are used to secure their respective blockchains through mechanisms like proof-of-work (PoW) or proof-of-stake (PoS). These combined functions make coins a foundational element of the digital currency ecosystem.

The different functions of Coin and Token

The different functions of Coin and Token

2.2. What are the functions of Token?

Tokens have a diverse range of applications within the blockchain ecosystem. Utility tokens provide access to specific services or products, such as Chainlink (LINK), which is used to pay for services within its network. Security tokens represent ownership in an underlying asset or company, similar to traditional securities. Governance tokens, like Uniswap (UNI), enable holders to participate in a project's decision-making process. Additionally, stablecoins, such as Tether (USDT), are pegged to the value of fiat currencies to provide stability. For example, the M2E token of the ATOK project is the operating token of the ATOK ecosystem. It is utilized for all transactions and activities in the ATOK app.

3. Should crypto holders choose to invest in Coin or Token?

Deciding whether to invest in coins or tokens depends on your investment goals and risk tolerance. Coins, with their established networks and primary functions as digital currencies, often represent a safer, more stable investment. They are ideal for those looking for long-term value storage and transactional utility.

Tokens, however, offer exposure to a wider range of innovative projects and applications. While they can be riskier due to their dependency on the success of the underlying project or ecosystem, they also provide opportunities for substantial gains, especially in emerging areas like decentralized finance (DeFi) and non-fungible tokens (NFTs).

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4. ATOK’s M2E: The potential Move-to-Earn token in 2024

4.1. How is ATOK’s M2E token built?

ATOK has developed $M2E as the operating token for both the project and the entire ATOK ecosystem. This token is built on the BEP-20 standard of the BNB Smart Chain, ensuring it benefits from the chain's scalability, transaction speed, and high security. Additionally, the widespread popularity of the BNB Smart Chain provides $M2E with significant opportunities for upgrades, expansion, and exchanges, making it a robust and versatile token within the crypto space.

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4.2. What are M2E token’s use cases?

Regarding ATOK, the development team has designed specific use-cases for the M2E token:

For Users: After earning M2E tokens through in-app activities such as movement, viewing ads, and playing games, users can utilize their rewards to upgrade NFT levels, trade on decentralized or centralized exchanges, and pay for essential goods and services offered by ecosystem advertisers.

For Advertisers: Advertisers must use M2E tokens to run advertising services on the ATOK app, treating it as a marketing expense. To acquire more M2E tokens, advertisers have two options: they can purchase additional tokens from the ecosystem, or they can reuse tokens received from users who pay for goods and services with M2E.

4.3. How can crypto holders get more M2E tokens?

Crypto holders can get more M2E tokens in many common ways like other crypto projects, including:

  • Stake M2E directly from ATOK Dapp on the ATOK website
  • Use the ATOK app as a move-to-earn app to get more M2E by turning the app while moving, watching ads, playing in-app funny games, and more.
  • Via the P2P transaction with other people in the ATOK and M2E holders’ community.
Learn More about ATOK and $M2E: https://linktr.ee/atok.m2e