Do We Really need a Coin for that?
Utility tokens are a digital currency that serve a specific purpose.
Examples of Utility Tokens are:
- SiaCoin (provides distirbuted fule storage wihout the need of middlemen like Dropbox or Google Drive)
- Powr Ledger (Peer to peer energy distribution without the need of hydro companies)
However, the argument can also be made that utility tokens are pointless and can slow adoption rate of crypto.
Why should you have to buy some SiaCoin to use Sia’s file storage services, or Powr’s for their power distribution or GNT for Golem’s super computer services?
For more than 70% of the tokens available today, they can all be be done with services such as Ethereum or NEO.
Although in theory a token does give incentive for early adopters to purchase and cash out as their token gains value, as a whole — this
puts the crypto markets at risk of overcrowding with projects mandating the use of their token to use their services.
Trust your own decisions and understand whatever it is you choose to invest in. Always do your due diligence. As always, don’t believe everything you read on the internet.