In the concept of cryptocurrency and blockchain, the terms coins and tokens are highly used. Understanding the differences and similarities between these two elements is a superhuman job, knowing that they are both used commonly in the industry. Long story short, if you are looking to grasp and actually realize the concept of cryptocurrencies, you should start by grasping the clear definitions of coins and tokens. We have got you all covered up!
Digital coins are, in their general form, similar to real money coins. They are created on their independent blockchain networks. A famous and worldwide example of a coin is the renowned Bitcoin! The blockchains that they are created on usually differ in miners, rules, performance, size and more. In addition, coins are also called “cash only” and are used for the smooth transfer of money and value. The most important thing to keep in mind is that coins are unstable and volatile as their value is directly connected to their supply and demand.
On the other hand, some coins, such as BNB, have additional usages, other than just being a form of exchangeable money. For example, they are being used to fuel and ignite transactions, specifically on the Binance Smart Chain networks. Other coins are used for staking for dividends earnings and finally, some others allow users or holders to gain voting powers to influence important decisions in the market. Interesting, huh?
Tokens on the other hand, are usually referred to as coins. However, they are very different in context and content. First, unlike coins, they do not have their own blockchain network and are built on existing ones, especially in the DeFi ecosystems. Similar to coins, tokens are used for the transfer of value, but with additional powers and authorities. Some types of tokens are security tokens, asset tokens, utility tokens, non-fungible tokens or NFTs, stablecoins, and payment tokens. In brief, coins are harder to create that tokens, but both have their own features and usages in the crypto world.
Recently, created on the Binance Smart Chain and listed on PancakeSwap and Moonlift Dex, BLACK LEMON debuted its $BOM token and the results are mind blowing! This is a successful and superb example of a crypto token. Upon release, the token reached a solid steady x5 reaching an ATH of 0.14 in only hours from its launch, and trust us, this is only the beginning.