//Just a reminder to the newcomers: coin vs. token

Just a reminder to the newcomers: coin vs. token

This is the true list of the top cryptocurrency coins. If a project is not on that list, then it is a token. Tokens are essentially kickstarter projects created on an existing blockchain’s platform. The most common form of tokenization is the creation of an ERC-20 token on Ethereum’s blockchain platform.Some companies do not need to crowdfund, and simply use tokenization as a component of their project’s ecosystem (eg, Binance Coin). Generally, however, tokenization is a strategy that is used by startup companies as a form of crowdfunding. Many of these startups are aiming to develop their own blockchain platforms and, as such, are using tokenization to raise money in order to hire developers to help them create this technology with them, or for them. In the latter situation, tokenization is used to crowdfund so that the founders can acquire the resources necessary to help them deliver on the promises that they made in their whitepapers.On the other hand, if you invest in a coin, either you are investing in a project that copy and pasted another coin’s code and developed a “new” blockchain that is nearly identical to an existing coin’s blockchain (eg, Litecoin is essentially identical to Bitcoin), or you are investing in a project that is building a novel blockchain platform from the ground up, but had the coding skills and resources to do it without having to crowdfund using tokenization (eg, Bitcoin, Ethereum, Ripple, Cardano, Stellar, Litecoin, IOTA, NEO, Monero).You probably realize by now that, on this subreddit, you see a lot more “announcements”, “updates” and “news” about tokens. The reason being that tokens need to market in order to achieve their goal (raising money).If you invest in a coin, you are investing in an existing platform with a working product. The existence of the coin itself is a testament to their novel (or copied) blockchain being functional. The product may be incomplete, and the team may be working on adding more functions to their platform as their roadmap comes to fruition, but the fact that they have a coin that does not require another project’s technology to function means that they do indeed have their own working blockchain platform.If you invest in a token, you are investing in the promises stated in its whitepaper. Although they may announce that their TestNet/MainNet will launch on a particular date, there is no guarantee that it will actually work. As long as a project is tokenized, the team is not using their own technology.

This is the true list of the top cryptocurrency coins. If a project is not on that list, then it is a token. Tokens are essentially kickstarter projects created on an existing blockchain's platform. The most common form of tokenization is the creation of an ERC-20 token on Ethereum's blockchain platform.

Some companies do not need to crowdfund, and simply use tokenization as a component of their project's ecosystem (eg, Binance Coin). Generally, however, tokenization is a strategy that is used by startup companies as a form of crowdfunding. Many of these startups are aiming to develop their own blockchain platforms and, as such, are using tokenization to raise money in order to hire developers to help them create this technology with them, or for them. In the latter situation, tokenization is used to crowdfund so that the founders can acquire the resources necessary to help them deliver on the promises that they made in their whitepapers.

On the other hand, if you invest in a coin, either you are investing in a project that copy and pasted another coin's code and developed a "new" blockchain that is nearly identical to an existing coin's blockchain (eg, Litecoin is essentially identical to Bitcoin), or you are investing in a project that is building a novel blockchain platform from the ground up, but had the coding skills and resources to do it without having to crowdfund using tokenization (eg, Bitcoin, Ethereum, Ripple, Cardano, Stellar, Litecoin, IOTA, NEO, Monero).

You probably realize by now that, on this subreddit, you see a lot more "announcements", "updates" and "news" about tokens. The reason being that tokens need to market in order to achieve their goal (raising money).

If you invest in a coin, you are investing in an existing platform with a working product. The existence of the coin itself is a testament to their novel (or copied) blockchain being functional. The product may be incomplete, and the team may be working on adding more functions to their platform as their roadmap comes to fruition, but the fact that they have a coin that does not require another project's technology to function means that they do indeed have their own working blockchain platform.

If you invest in a token, you are investing in the promises stated in its whitepaper. Although they may announce that their TestNet/MainNet will launch on a particular date, there is no guarantee that it will actually work. As long as a project is tokenized, the team is not using their own technology.