Token — as a tool for platform management

When a company decides to attract investment for development, it issues tokens.This process is called ICO.
Issued tokens can have different functions. For example, if these are ICO cryptocurrencies, investors buy tokens, which in the future may grow in value.

Formally, a token is a gadget or an array of characters used to identify users.

Much more interesting is the functional description of tokens. They can simultaneously represent have such characteristics:

Have a purchasing ability -you can buy for them services and goods;
Exercise the role of currency in a closed ecosystem;
To be an indicator of a shareholder’s share in an “enterprise”;
A significant indicator of something (the number of available gigabytes to load);
Form of remuneration for some actions.

That is, a token can simultaneously be used as a reward tool in a game, and also be a unit of account.

This is one of the principal differences between tokens and the coins. Cryptocurrency is designed for payments and transactions. Its main function is the purchasing power. Tokens have a wider range of applications, but smaller scales. In addition to being used to obtain services and purchase certain products, tokens can also be the basis of a loyalty program or a digital share.

In this case, cryptocurrency, if one may so express it, circulates in the external digital economy. Tokens, at least at the initial stage, support the operation of a closed ecosystem. They do not have a public purse and a Blockchain, like the main cryptocurrencies.

Most of tokens are issued on the Ethereum Blockchain, so-called ERC20 format.

Let’s take for example tokens of ICO Export.Online. The following platform is is created to solve the existing problems and difficulties of exporters associated with the start and conduct of activities in international trade.
The token name is Exon. It is the ERC20 format. They can be purchased during pre-ICO or ICO. It serves as ‘’fuel’’ for transactions within the platform.

Overall, the ICO market is growing very fast. Unfortunately, there are too many scam-projects. People should be very attentive while investing in any project. As, according to the statistics, around 98 % of all ICOs is fraud.