What is a Utility Token?

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What is a Utility Token?

A utility token is a type of cryptographic token that can be redeemed or used as part of a service provided by the issuer of the token; hence, it has “utility.” 

For example, Ethereum’s ETH is often considered a utility token, as ETH owners can use ETH to pay for transaction fees on the Ethereum network. Likewise, Filecoin’s FIL is also widely considered a utility token, as FIL is used to pay for file storage on the Filecoin network.

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