Bitcoin Forum

What is exactly tokens of a project? How it has a value? Is it like shares? I am a newbie for bounty hunting and these things confusing me each time I read whitepapers of projects.  :'(

they can be a variation of things

for example they could be just marks of support. without any obligation but a potential future volunatry one.

they could be shares.

and they could be uttility token like it was the case for ethereum

regards

Think of it like that of shares.

But what makes it vale is actually the market. If the token is a utility token which makes it something useful for the project say a GAS for transaction then it will have demands from the users. The market will determine its price so it will depend  to how much the traders are bidding, exchanges are the ones who will tell how much a coin's price is base on its market. If I bid $1 and you bid $2 then the price will be $2. You bid higher.

yes its a share of company or value of campany.whenever you buy token from a project they shows their soft cap and hard cap.did you think ever what are these? softcap is need of minimum amount to start the project and in other hand hardcap is highest amount of a project that can be accept for starting it.
so here if ur investing in any project;are not u are a taking shares from them?
so 1 token=1share of company.if i am wrong please anyone correct it. 

The connection between a project and it's issued token is simply thus; you are buying into the shares of the company even though they're not to be regarded as securities. The token is a source of capital for the project as it's being offered in exchange for coins of value like ETH and BTC. Tokens are also what gives a project a community.

the token is the alternative for fiat currency used for payment whichever the project they create. it is also shared, so if you have their token you own a fraction of that company.

By now, you would have received sufficient information you craved and needed. I'm glad I stumbled on this as it has given me more insight into how this operates. Cheers to the future rewards from future projects to Newbies here.

it's not shares like stockmarket but mostly token is used in their platform mostly a payment only in that platform the value of the token is based on the demand of the platform it is being used. they using ICO/ITO to collect funds they need to establish the project in return investor is rewarded/buying tokens on which they expect they can sell it higher on someone who gonna use the platform or sell it on an exchange hoping for a higher price because of the demand. that's why if the platform is high on demand or had some practical use of the token investing early on ICO is a way to get some good profits. In rare cases developer of the project give rewards to the token holders.

You may have a look on this post which is exactly answering your questions.
Meanwhile as you are newbie, I think this site's post on tag: blockchain / cryptocurrencies are kinda useful

http://startupmanagement.org/2016/08/15/the-relationship-between-cryptocurrency-tokens-value-and-work/