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1/5 Did you know that there are over 2000 #crypto tokens and 4 major crypto token categories?
Utility Tokens
Security Tokens
Non-fungible Tokens - NFTs
Stablecoins
Follow this #crypto20in2020 thread to learn about their general differences and use cases
2/5 #Utility Tokens:
Bitcoin $BTC and ether $ETH (the native currency of the @ethereum blockchain), are generally considered utility tokens because they function as utilities within their networks.pic.twitter.com/Oi4B0Qy88A
3/5 #Security Tokens:
Security tokens have characteristics resembling traditional #investment instruments, like equities, and are typically used as fundraising vehicles.pic.twitter.com/cOKBFPoKTx
4/5 Non-fungible tokens:
#NFTs, many of which follow the ERC-721 standard for tokens, are altogether different in nature. They're still recorded on the blockchain, but each NFT is unique and valued individually, similar to a baseball card or a piece of artwork.
cc: @niftygatewaypic.twitter.com/YzwT3LCXtT
5/5 #Stablecoin:
Stablecoins are created when assets, like the US #dollar, are turned into a token. One of the benefits of this type of token is that it can move freely on the blockchain, but have the price stability of traditional currencies.pic.twitter.com/toYdyjw0n5
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