Given that you will see the term frequently while investigating cryptocurrencies, it is useful to be aware of certain typical meanings. However, in addition to the broad definitions provided in the preceding section, there are other types of crypto-assets that include the term “token” in their name. Also, there is a concept called exchanges token listing. Here is the list to know about tokens
Tokens issued by DeFi
In recent years, a new universe of cryptocurrency-based protocols that try to replicate classic financial-system operations (loan and saving, insurance, trading) has evolved. These protocols generate tokens that serve a variety of roles but can also be exchanged or held in the same way that any other cryptocurrency may.
Tokens of governance
These are specialized DeFi tokens that provide holders a say in the future of a protocol or software that does not have boards of directors or any other central authority due to its decentralized nature. For example, the popular savings protocol Compound issues all users a token called COMP. Holders of this token have a say in how Compound is updated. The more COMP tokens you own, the more votes you will receive.
Tokens That Aren’t Fungible (NFTs) NFTs indicate ownership rights to a one-of-a-kind digital or physical asset. They can be used to make it more difficult to copy and share digital products. They’ve also been used to distribute a limited quantity of digital artworks or sell one-of-a-kind virtual goods, such as rare items in a video game.
Tokens of security Security tokens are a new type of asset that aims to be the cryptocurrency counterpart of traditional securities such as stocks and bonds. Their primary application is to sell shares in a corporation (similar to the shares or fractional shares sold in traditional markets) or other enterprises (for example, real estate) without the assistance of a broker. Security tokens have been reported to be being investigated by major corporations and startups as a viable alternative to existing means of funding. The exchanges token listing is a concept that is used for increasing the liquidity exchange of cryptocurrency. One has to be sure before buying these types of digital currencies as it is a kind of investment. Everyone can have an idea of getting cryptocurrencies but only a few of them buy those. It is because the value of the currencies is very high and it is not affordable for normal people.