A crypto token is a digital unit of value or utility issued on an existing blockchain network — as distinct from a cryptocurrency coin, which is the native currency of its own blockchain. Tokens are created through smart contracts (most commonly on the Ethereum blockchain using the ERC-20 standard) and can represent a wide range of assets or rights — including governance rights in a decentralised protocol (governance tokens), access to a specific platform or service (utility tokens), ownership of real-world assets like real estate or art (security tokens / asset-backed tokens), or unique digital items (non-fungible tokens, NFTs). Unlike coins such as Bitcoin or Ether, tokens do not have their own underlying blockchain but rely on the security and infrastructure of an existing network. In India, the regulatory landscape for crypto tokens is evolving, with SEBI and RBI both engaged in developing frameworks for digital assets. For investors on Ventura Securities interested in the broader fintech and blockchain investment theme, understanding the distinction between coins and tokens — and the regulatory and technological risks associated with each — is foundational to evaluating digital asset-related investment opportunities.
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