Tag: Token

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Cryptocurrencies

What’s MovieBloc (MBL) All About? 

The film industry is dominated by powerful gatekeepers. These gatekeepers control not just the money but also the airtime. In this setup, small, independent filmmakers and audiences get the short end of the stick. And even the ‘mainstream’ filmmakers are disadvantaged because they can only create content that caters to a commercial end. And audiences never get to see what could have been if not for these restrictions. 

The film industry is dominated by powerful gatekeepers. These gatekeepers control not just the money but also the airtime. In this setup, small, independent filmmakers and audiences get the short end of the stick. And even the ‘mainstream’ filmmakers are disadvantaged because they can only create content that caters to a commercial end. And audiences never get to see what could have been if not for these restrictions. 

The film industry is dominated by powerful gatekeepers. These gatekeepers control not just the money but also the airtime. In this setup, small, independent filmmakers and audiences get the short end of the stick. And even the ‘mainstream’ filmmakers are disadvantaged because they can only create content that caters to a commercial end. And audiences never get to see what could have been if not for these restrictions. 

The solution for this deeply flawed state of events is a decentralized movie and film ecosystem that takes care of every participant. In the blockchain, there’s no discrimination based on “who is who” in the industry. Everyone gets a fair shot. 

MovieBloc is a project that wants to achieve exactly this. In this piece, we’ll dive into all that’s wrong with the current film and movie industry and how MovieBloc proposes to fix it. 

Understanding MovieBloc

MovieBloc is a blockchain effort that seeks to democratize the movie experience. It aims to create a win-win scenario for both creators and audiences. Creators will get their deserved revenue, and viewers can get access to a wide and rich variety of content. 

MovieBloc has gone extra miles more than previous decentralized efforts for the movie ecosystem. These projects have centred on removing intermediaries and creating direct distribution channels between content creators and consumers. The MovieBloc formula will give creators more roles and participation in the whole process. They will be able to promote and export their content to viewers. And instead of just the creators and the audience being the participants, other participants such as translators, reviewers, designers, etc. will be part of the ecosystem. 

The Problems with the Current Film Industry

The MovieBloc team identified various problems with the current film industry, which they resolved to address with blockchain tech. Let’s get a snapshot of these issues before looking at the solutions MovieBloc wants to provide. 

i) Oligopoly and Vertical Integration

The current movie and film industry is characterized by the same old three vertical layers: production, distribution, and exhibition. In countries such as the US, a few conglomerates dominate these verticals in such a manner up, and coming companies get very little chance. In the same manner, audiences never get to consume content that these big conglomerates choose not to be involved in. It’s a scenario in which a few powerful entities deny viewers the right to enjoy a wide variety of content, and the producers of such content never get a chance with audiences.

ii) Few Funding Opportunities

The conglomerates we mentioned above are driven by one thing – box office hits. As such, directors and creators must incorporate commercial-centric ideas into film content. This inhibits film creators’ freedom of expression and curtails their artistry. The film market is also flooded with the same standardized concepts. If film producers go the independent path, they have to do so on a low-budget film. And when the film is complete, profitability is not guaranteed due to the difficulty of securing screens and limited marketing resources. 

iii) Revenue Problems

Again, when films take the independent path, it’s extremely difficult for them to be played at other places apart from film festivals. Video on demand (VOD) services is another potential profitability avenue. Even then, independent films are competing with blockbusters. Also, when it comes to revenue sharing agreements, independent films have weaker bargaining power. 

YouTube, another monetizing avenue, requires a channel to have at least 4,000 hours of annual watch time and 1000+ subscribers so as to be eligible for monetizing content. With these conditions, independent films end up uploading content on YouTube for free – and without much chance of earning fairly from their portfolio. 

iv) Lack of Transparency in Revenue Sharing

It’s hard to verify the accuracy of film sales reports. They may not disclose if and how much revenue was affected by things like discounts, marketing, or the make up of the audience (e.g., gender and age). This lack of verification creates a bad rap for the industry. And since content producers do not have audience info, they cannot create content that caters best to such audiences. 

iv) Limits on Film Distribution

Despite seemingly ubiquitous online streaming services, the distribution structure remains centralized. This creates a barrier for smaller and indie films to access the wider, global market. We have filmmakers each year being recognized for their quality work in film festivals all over the globe. But thanks to a centralized distribution architecture, these filmmakers struggle to get their content beyond the border. 

MovieBloc’s Solutions

#1. Decentralize the Film Industry

MovieBloc will create a transparent ecosystem with the right and deserved rewards going to every participant. Whether you are a creator, viewer, reviewer, designer, curator – you get rewarded for your role and contribution to the ecosystem. 

#2. Support Creators

MovieBloc will conduct blockchain-based movie festivals to discover quality films and talented filmmakers. These festivals will happen every quarter, and contest winners will receive $10,000 in rewards. This will increase their profile and encourage them to continue creating high-quality content for the MovieBloc platform. Such creators can also crowdsource for future films on the platform. In return, the creators can release special content to donators, such as behind the scenes cuts, pre-releases, etc. 

#3. Guaranteed Profits 

On MovieBloc, content creators can expect up to 90% of the revenue. The creator sets conditions like the price, airing duration, locations to air, and they will be applied without needing approval from a central party. Advertising, translating into foreign languages, and design and marketing efforts will propel the film to diverse regions and help boost earnings.

#4. Transparent Rewards and Consumer Info

MovieBloc will reward content creators transparently via blockchain-based smart contracts when they upload content and users purchase it. The platform will also give creators viewership insights, such as age, gender, devices, traffic source, etc. This will help creators curate content that caters to and satisfies their audience. 

#5. Worldwide Screen

MovieBloc will work with KMPlayer to broadcast movies to audiences across the globe. KMPlayer is a media player that can play a wide variety of formats and have millions of active users in more than 150 countries. Currently, KMPlayer has been downloaded more than 811 million times, according to Softonic.com. This collaboration will considerably ease the marketing burden for MovieBloc as it will quickly onboard the existing users of KMPlayer. Content creators will also allow creators to avail content to consumers with the single click of a button. 

MovieBloc Architecture

The MovieBloc ecosystem comprises three layers: community, market, and fundraising. The community layer, also called ‘BLOC,’ is a decentralized community where all participants can meet and connect. 

The Market layer is where content such as films and designer marketing material can be exchanged and traded among various players. 

The fundraising layer is where the quarterly film festival is held, and donations are made. It motivates filmmakers to continue curating high-quality content. 

Participants of MovieBloc Ecosystem

i) Content providers

These are participants who can upload content and receive up to 90% of revenue. They can get access to hitherto unexplored markets via MovieBloc. 

ii) Creators

These are participants who have content distribution rights. Content providers can be creators, as can directors. Creators receive their share of the revenue from sales. They can participate in the film festival and have their work evaluated by the MovieBloc community. 

iii) Curator

These are content individuals who place films in their individual theatres and market it to audiences. Creators can also curate their own films for which they’ll receive higher revenues. Creators can hire translators, designers, and subtitle makers to avail their content to wider audiences. 

iv) Translators

These are individuals who help viewers from various cultures and parts of the world to understand foreign movies. Translators are rewarded for the services by curators, or they provide their services voluntarily. 

v) Users

These are consumers of content on MovieBloc. They can be rewarded for leaving reviews and for reporting illegal content. 

vi) Foundation

The foundation plans to execute advertising and marketing events to provide the optimal environment for users and for creators to showcase their work in film festivals. 

The MovieBloc Token

The MovieBloc platform has a token with the ticker ‘MBL.’ The token is essential to the MovieBloc ecosystem, playing the following roles: 

  • Users paying for premium content
  • As payment for translating and designing services
  • As donations for creators, translators, reviewers, and other participants
  • As payment by curators for screen expansion
  • As rewards for users for activities like reporting spam content and rating/reviewing films

How Was MBL Distributed?

The MBL token distribution was as follows: 

  • 8% for Gate.io startup sale
  • 3% for the private sale
  • 43% for ecosystem tokens
  • 10% for the MovieBloc foundation
  • 15% for the MovieBloc team
  • 10% for the Ontology Foundation
  • 11% went to airdrop marketing efforts

Key Metrics

Interested in purchasing MBL tokens? Then it helps to see how it’s performing in the market. As of Sept 1, 2020, MBL traded at $0.001964, with a market cap of $16,808,877 that placed it at position #414. MBL’s 24-hour volume is $2,409,326, and its circulating supply is 8,556,487, 108, while its total and maximum supply is 30 billion. MBL’s all-time high and an all-time low was $0. 006122 (Feb 18, 2020) and $0.000768 (Mar 13, 2020). 

Buying and Storing MBL

You can find MBL paired with both crypto and fiat currencies like BNB, BTC, BNB, USD, USDT, ETH, in a large variety of crypto exchanges. Some of these include Upbit, Binance, BitHumb, Gate.io, MXC, Coinone, HitBTC, TOKOK, and HanBitco.

MBL is based on the Ontology chain, so any wallet that supports that standard is good to go. Great choices include Atomic Wallet, Guarda Wallet, Trust, Coinomi, Ledger, and Trezor.

Categories
Cryptocurrencies

A Complete Guide to Asset-Backed Tokens 

Blockchain technology heralded a new era of transparency, fairness, and democratization of finance. Currently, there are numerous applications of blockchain that are helping make the world a better place while reducing financial barriers. One of these is tokenization, a process that enables asset owners to sell a portion or the whole asset and get compensated fairly. Also, assets that could only be afforded by the high net worth individuals can now be afforded by the average investor, thanks to asset-based tokenization. 

Blockchain technology heralded a new era of transparency, fairness, and democratization of finance. Currently, there are numerous applications of blockchain that are helping make the world a better place while reducing financial barriers. One of these is tokenization, a process that enables asset owners to sell a portion or the whole asset and get compensated fairly. Also, assets that could only be afforded by the high net worth individuals can now be afforded by the average investor, thanks to asset-based tokenization. 

Blockchain technology heralded a new era of transparency, fairness, and democratization of finance. Currently, there are numerous applications of blockchain that are helping make the world a better place while reducing financial barriers. One of these is tokenization, a process that enables asset owners to sell a portion or the whole asset and get compensated fairly. Also, assets that could only be afforded by the high net worth individuals can now be afforded by the average investor, thanks to asset-based tokenization. 

In this article, we break down asset-based tokens, the rationale behind tokenizing assets, and take a look at assets with great potential for successful tokenization. 

What Are Asset-Based Tokens? 

Asset-based tokens are tokens whose value is backed by a real-world, tangible asset. Essentially, they are crypto coins whose value is pegged against an existing asset value. People tokenize real-world holdings so as to increase their liquidity (the real-world assets) in a market place. 

Asset-backed tokens are offered during a Security Token Offering (STO). 

An STO is a process where an investor exchanges money for tokens representing an investment. As such, we can describe security token offerings as events that distribute securities. And since tokens represent real-world property, STOs represent a secure investment option. 

Why Tokenize an Asset? 

Asset owners or managers tokenize assets to increase liquidity for the underlying asset. Liquidity is the degree to which an asset can be quickly and easily purchased or sold at a price reflecting its true value. Securities like stocks and bonds have high liquidity as opposed to assets like cars, real estate, jewelry, and so on. Liquidity commonly affects an asset’s trading volume. Good liquidity can also enhance an asset’s value since it’s easier to convert such an asset to cash.

Examples of Tokenization Use Cases

Tokenization is mainly used to back assets that generally have limited liquidity. Some of these assets include derivatives, real estate, art, company shares, commodities, and other assets that usually take long to find a buyer. 

Below are examples of asset tokenization use cases: 

☑️Tokenization of company equity.

☑️Tokenization of real estate investment trusts (REITs) for investors who want to venture into real estate. REITs can be customized to suit client needs or characteristics, such as risk tolerance 

☑️Tokenization of real estate or rental returns. Today’s real estate is prohibitively expensive to scores of people who would otherwise be interested in a smaller percentage of the property. Tokenization allows such property to be “fractionalized,” allowing more people to invest in a property. 

☑️Tokenization of intellectual property such as film licensing, royalty payments, etc. This allows fair distribution to every party that has a claim to such a movie, song, album, or book. 

☑️Tokenization of accounts payable and receivable, potentially replacing factoring and other models of supply chain finance. This substitution would allow data to flow seamlessly between accounts payable and accounts receivable in Enterprise Resource Planning (ERP) systems. 

Tokenizing an asset increases its value by opening up previously unattainable markets. Since asset tokenization is based on smart contracts, it also eliminates third parties and intermediaries – saving up money in the process. Moreover, investors who can’t afford these third parties are afforded the opportunity to take part in asset ownership. Not to mention, the automated tokenization process is faster, saving everybody’s time. 

Categories of Asset-Backed Tokens

There are four main categories of potential tokenization of assets; these are:

  • Tokenization of equity and debt
  • Tokenization of commodities
  • Tokenization of non-fungible hard assets
  • Tokenization of non-fungible soft assets

I. Tokenization of Equity and Debt 

Tokenizing equity and debt is a method of fundraising for startup companies. This process removes the need for intermediaries, such as banks and stock exchanges. 

Fractionalization of equity ownership is by no means a new concept – stock certificates, timeshares, mutual funds, etc. have existed for a long time. But asset-backed equity and debt tokens now offer something much more – an immutable, transparent, and liquid digital representation of a company’s debt or equity. Any shareholder can access the blockchain platform and verify ownership and its authority to trade. 

As such, although debt and equity are assets that anyone can purchase and sell today, blockchain technology radically improves the process. Private equity funds are traditionally low liquidity assets that require investors to hold their stake for at least one year. Hedge funds are another type of asset that is moderately liquid – requiring investors to hold for several months. 

Increasing liquidity via tokenization would dramatically increase the value of these asset classes, enabling investors to better adapt to market fluctuations.  

II. Tokenization of Commodities

Commodities that are normally traded on exchanges can also be converted into security tokens. Whether it’s oil, gas, grain, sugar, tea – any commodity that’s already traded through intermediaries can be tokenized. 

Cross-border trading of more fringe commodities such as hydro, wind, or solar power can also be done via a blockchain-based exchange. Governments, utility companies, and consumers can all participate and interact on a single trustless and open platform. 

As for tokens that are backed by real-world assets, physical verification is needed to establish the accuracy of the token value. Already, there are third-party auditors that exist for this end. These auditors can now combine real-life verification with blockchain-based tracking to increase confidence in the marketplace. 

For gold, which commonly trades through exchange-traded funds, tokenizing it completely changes the game. Each token represents part or the whole gold bar that’s stored and audited by a third party “oracle.” The oracle verifies the gold’s weight, purity, authenticity, etc. 

Bitcoin, the ‘digital gold,’ could be even replaced by tokenized gold in the future. The advantage Bitcoin holds over real gold is its ability to be easily divided and transferred. It’s easy, for instance, for a token exchange to take Bitcoin worth $3,000 and send 1% of that to another crypto holder. It’s, however, challenging to do the same with a bar of gold. But once you tokenize it, it becomes much easier to sell and transmit a fraction of that gold, and the same is true for other commodities.

III. Tokenization of Non-fungible Hard Assets

Hard assets are tangible and physical assets. Hard assets also present many opportunities for tokenization. In this category, we will look at two hard assets: real estate and collectibles. 

  • Real Estate Tokenization

Tokenizing real estate could make it a borderless investment, more profitable, and more affordable for all types of investors. Real estate here means things such as rentals, hotel chains, motel chains, care homes, etc. 

  • Collectibles Tokenization 

Traditionally, collectibles such as rare art pieces have been a preserve of the rich. With tokenization, anyone anywhere can hold a percentage of a collectible. 

Also, tokenizing an asset helps it achieve more value in the long term. An art piece, for instance, can be tokenized and distributed on the blockchain with each ‘shareholder’ holding a tradable share of the piece. 

IV. Tokenization of Non-fungible Assets

Soft assets are assets that are intangible and which are usually hard to quantify and establish their value. We’ll look into two types of soft assets: intellectual property and digital asset collectibles. 

  • Intellectual Property (IP) Tokenization

IP assets such as copyrights, royalties, patents, and trademarks have traditionally had low liquidity and have never had a secondary market place on which investors can buy. Tokenizing IP ownership would not only enhance its liquidity but also increase its value.  

  • Digital Asset Collectibles Tokenization

Usually, it’s difficult to prove ownership of digital collectibles – with the only proof being a contract between the provider and the user. However, tokenization could create a market place for these virtual goods, even increasing their liquidity and hence value. 

Challenges and Opportunities for Asset-Backed Assets

Asset-backed tokens go toe to toe with Bitcoin in terms of being fungible, transferable, scarce, and durable. As such, asset owners can find a market place for their assets easier than ever. 

Tokenization could face a hostile environment depending on territory. For instance, China, Qatar, and South Korea have banned STOs outright, while countries like the US, Singapore, Germany, and the EU allow it, albeit with strict regulations. Other countries like India are yet to take a definitive stand on STOs. Some jurisdictions like Malta have granted STOs free rein – placing no limitations or regulations on them whatsoever. 

Tokenization might also be prone to user error, and it’s easy to lose your tokens if you’re not careful with your wallet private key address. 

Asset-backed tokens are immune from the volatility swings experienced by utility tokens and cryptocurrencies. Asset-tokens can trade 24/7 if listed in crypto exchanges. This exposes them to market liquidity from investors all over the world. Also, asset-rich companies may soon adopt tokenization, increasing its visibility. This would popularize the idea of asset-backed tokens, pushing it into the mainstream. 

Conclusion 

Asset tokenization enables a physical asset to be divided into smaller parts, making it easier to convert into cash. Thanks to asset-based tokens, times may be gone when people had to wait for months or years to finally get a move in market position for their assets. And anyone, regardless of geographical location or the capital they possess, can get a share of attractive assets that they previously couldn’t. Tokenization will help create more inclusive, fair, and effective marketplaces.

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Crypto Videos

Utility VS Security Tokens – Avoiding Facebook Scams

Utility vs. security tokens
Anyone that’s new to cryptocurrencies must have been confused by the terminology at one point or another. Terms like “cryptocurrency,” “tokens,” “securities,” “utility

Utility vs. security tokens
Anyone that’s new to cryptocurrencies must have been confused by the terminology at one point or another. Terms like “cryptocurrency,” “tokens,” “securities,” “utility

Utility vs. security tokens

Anyone that’s new to cryptocurrencies must have been confused by the terminology at one point or another. Terms like “cryptocurrency,” “tokens,” “securities,” “utility tokens,” etc. must get extremely overwhelming in the beginning.
This guide will try to explain and simplify terms like “utility token” and “security token” in order for people to better understand them.

What are Tokens?

Tokens are considered a representation of an asset or utility that resides on top of another blockchain. They can represent basically any asset that is fungible and tradable. Tokens do not have their own blockchains, but they rather use a platform’s blockchain. Utility tokens and tokenized securities concepts that are funding underfunded projects with good ideas all around the world.

A token is not limited to one particular goal as it can fulfill many roles in its native ecosystem. A token represents a security or utility that an entity has. These securities and utilities are usually offered to their investors in exchange for funds during a public sale called ICO – initial coin offering (in the case of utility tokens) or STO – Security Token Offerings (in the case of security tokens).

The Howey Test

Before we talk more about utility and security tokens, we have to know how they are divided into these categories.
In order for a financial instrument (in this case, a token) to be regarded as security and fall under SEC’s purview, the instrument must satisfy these four criteria:

It must be a money investment
profits are to be expected
In a unique enterprise
With the profit to be generated by a third party.
All these three elements must be met for a token to be classified as a security. Otherwise, the token is a utility.
The Howey Test and securities, in general, have become a source of intense debate in the crypto-community. The criteria of the Howey Test can be interpreted quite differently from one person to another. This brought additional instability to the ICO markets, which resulted in a lot of money being pulled out of the market itself.

Utility Tokens

Most ICOs are considered an investment opportunity, which means that most tokens usually can be considered as securities. However, if the token doesn’t qualify according to the Howey test, then it is classified as a utility token. These tokens aim to provide users with a product or service.
Their value is derived by the utility they provide and (of course) supply and demand. As there is a maximum number of coins, and no minting is allowed in most cases, the value of the tokens may go up as the demand rises.

How Utility Tokens Work

Utility tokens can offer a wide variety of things, with the most important features being:
Giving holders a right to use the network;
Giving holders a right to take advantage of the network by voting.
Utility tokens the most popular form of tokens out there, mainly because of the 2017’s ICO boom. Companies raised millions of dollars in funding by offering utility tokens. However, many of these crowdfunding campaigns were just there to part people from their money. Once the cryptocurrency market started entering the bear market, the ICO market settled down a bit.
The most clear example of a utility token is the ERC-20 Ethereum standard. Most tokens were made on the Ethereum platform.
Examples of utility tokens:
Filecoin
Siacoin
Civic
Security Tokens

Any crypto-token that passes the Howey Test can be considered a security token. These tokens derive their value from an external, tradable asset. As these tokens are deemed as securities, they are subject to federal regulations.
A token is considered a security when there is an expectation of profit from the effort of others. If the crowdfunding doesn’t follow certain regulations, it could be subject to penalties. However, if all the regulations are met, then these tokens have the potential to have some amazing use-cases.

At its core, a security token is an investment contract. It represents legal ownership of a physical or digital asset such as real estate, ETFs, or any other asset. This ownership has to be verified within the blockchain in order to be valid. After the ownership is verified, security token holders can:
Trade their tokens for other assets
Use them as collateral for a loan
Store and hold them in different wallets

What Regulations Are Security Tokens Subjected to?

Security Tokens are subject to federal security regulations, which means that they have to be compliant from the first day itself. This means that security tokens need to follow certain regulations within the USA. These regulations are:
Regulation D
Regulation A+
Regulation S
Regulation D
Examples of security tokens are:
Sia Funds (Sia has two tokens – Sia coin which is a utility token and Sia Funds which is a security token)
Bcap (Blockchain Capital)
Science Blockchain…

Conclusion

Both utility and security tokens have a role to play in the token infrastructure. They offer and represent different things, which means that they are not direct competition with one another.
As time passes, regulators will clarify and classify tokens better, which will make the token market a much safer and straightforward market.

Categories
Crypto Videos

Cryptocurrency – Coin Vs Token – Which Is Better?

https://youtu.be/9ON1S4_EMaM
Cryptocurrency Coin vs. Token
Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This

https://youtu.be/9ON1S4_EMaM
Cryptocurrency Coin vs. Token
Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This

Cryptocurrency Coin vs. Token

Before we jump into the comparison, let’s start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital currencies that are secured with encryption. This encryption is created by using cryptography, which is simply the use of encryption techniques to secure and verify the transfer of transactions.
Bitcoin is considered the first decentralized cryptocurrency. It is powered by blockchain, a public ledger that records and validates all transactions that happen on it. Even though Bitcoin was not the first cryptocurrency, its creation is extremely important as it is the first distributed and decentralized one. The creation of Bitcoin managed to start a whole market of other cryptocurrencies (coins and tokens) that are regarded as cryptocurrencies even though most of them do not fall under the definition of a “currency,” but rather try to solve a different problem in society.

Cryptocurrency Categorisation

As previously mentioned, the term cryptocurrency is not completely accurate for most cryptocurrencies. In order for a cryptocurrency to be considered a currency, it technically needs to represent a unit of account, a store of value, and a medium of exchange.
These currency characteristics are inherent within Bitcoin, and since the whole cryptocurrency industry started with Bitcoin’s creation, the rest of the cryptocurrencies began being called currencies. In order to better understand the nature of cryptocurrencies, there are a couple of categorizations. We will talk about the most common one today. Cryptocurrencies can be separated into:
Coins (Altcoins), Tokens.

Coins


Alternative cryptocurrency can also be called altcoins or simply “coins.” Altcoin simply refers to coins that are not Bitcoin. Most altcoins came to life as a fork of Bitcoin, built using Bitcoin’s original protocol with a couple of changes to its underlying codes. These changes are, even though seemingly small, what actually sets these new coins apart from Bitcoin, as they offer a different set of features to it.
A concept of modifying open source codes to create new coins is called hard forks, while a change to a code that does not create a new cryptocurrency is called a soft fork. A few examples of altcoins that came from Bitcoin’s code are Namecoin, Litecoin, Dogecoin, Bitcoin Cash, Bitcoin Private, Auroracoin…
However, not all altcoins came from Bitcoin’s code. There are altcoins that have created their own Blockchain as well as a protocol that supports their native currency.

These coins include Ethereum, Ripple, Bitshares, NEO, Waves. What sets altcoins apart is that they each possess their own independent blockchain. This blockchain is where all transactions of their native currency occur.

Tokens

Tokens are considered a representation of an asset or utility that resides on top of another blockchain. Tokens do not have their own blockchains as altcoins do. They can represent basically any asset that is fungible and tradable. This could range anywhere from commodities to loyalty points.

Creating a token is a much easier task than creating a coin. This is simply because the code from a particular protocol does not have to be modified in order to create a token. Platforms such as Ethereum or Waves offer certain guidelines which, if followed, allow anyone to create a token. Creating tokens is made possible through the use of smart contracts. Smart-contracts are programmable computer codes that are self-executing as long as the terms are met. They don’t need any third-parties to operate.
As tokens built on the same blockchain have the same template, they share many characteristics. This provides a standard interface for interoperability between tokens, which allows people to store different types of tokens on a single wallet. A great example is the ERC-20 standard on the Ethereum blockchain, which has been used to create over a thousand tokens. Most (if not all) of these tokens can be stored on ERC-20 wallets.

Tokens are mostly created and distributed through an Initial Coin Offering (ICO). An ICO is simply a way of crowdfunding where developers fund their projects through the release of a new token or a promise of a token. The ICO market has been filled with successful as well as very unsuccessful projects. There were also a lot of scams on the market as people were buying anything and everything during the time of the cryptocurrency price boom of late 2017. Nowadays, the ICO market has died down compared to 2017 but is still active. However, people are a lot more cautious when it comes to where they invest their money.

Final Thoughts

The main difference between coins and tokens is in their structure, where coins are separate currencies with a separate blockchain, while tokens are cryptocurrencies that operate on top of an already-made blockchain.
When it comes to the number of coins and the number of tokens, the majority of cryptocurrencies in existence are tokens as they are simply easier to create.