A utility token is a type of cryptocurrency that represents a specific function or utility within a decentralized network or platform.
It is designed to be used to access certain services or products within the network and can also be traded for other cryptocurrencies or fiat currencies.
Utility tokens differ from security tokens, which are investments in a company that is backed by an underlying asset, such as stocks or bonds. Unlike security tokens, utility tokens are not meant to be investments, but rather a way to access and use a specific platform or network.
Some famous examples of utility tokens include Binance Coin (BNB), which is used to pay transaction fees on the Binance exchange, and Golem (GNT), which is used to access computing power on the Golem network.