Utility tokens are digital tokens that give users access to specific features, products, or services within a blockchain project. They don’t represent ownership or investment, unlike security tokens. Instead, they’re used to interact with decentralized apps (dApps) — for example, to pay transaction fees, unlock premium features, or participate in governance.
Their value comes from how useful they are within the platform, not from company profits. Utility tokens are often distributed through ICOs or token sales, and are common in ecosystems like Ethereum, Binance Smart Chain, and Filecoin. While they can be traded, their main purpose is to power activity within a network.
