Cryptographic Tokens

Cryptographic tokens are digitally scarce symbols with associated properties. Within the context of web3 they are usually considered through an economic frame of incentives though they don't need to be.

The simplest way to look at them is as assets or liabilities. Historically the Swiss regulators made sense of things through a threfold frame of: utility tokens, security tokens and community tokens.

Utility tokens (+)

Utility tokens are used to access functionality within the context of a network and are analogus to vouchers or coupons which entitle the bearer to services; like streaming music and media.

Security Tokens (-)

Security tokens can be thought of as legal wrappers which denote ownership rights. This could be thought of as shares in a company or the deeds to a property.

Community Tokens (=)

Community tokens represent a grey zone between access and ownership. let's say your into digital collectibles like pokemon cards, by owning such a card you gain additional benefits like access to a community of likeminded collectors.

Token Functionality

Through a similar economic lens we can compare Jevons four functions of money and apply them to crypto currencies: