Difference of a coin & a token

[Futurexxx]

I know that most people here, especially newbies like me and some crypto enthusiastic alike will mostly sees coin and token as the same thing, but no, they aren't they are quite different and a coin is like a shoulder above a token, it can be used as a currency, while a token can't be used.

When talking about a coin, we are talking about asset like Bitcoin, enthereum, optimism, matic, bnb , Solana, Ton etc all this few I made mentioned are coin, and they all have their own network, they don't operate outside their network, but their are some coin that has a collaboration with other coin to work together, that is why you will see the bnb smart chain inside the enthereum network, instead of only the enthereum traditional network called ERC20.

But a token are just crypto create without a network, but operate on either any of these Blockchain network listed down above, the typical example of that is hamster, dogs or cat operating on the Ton network or pepe operating on the enthereum network.

[$weetne$$]

The big difference between a coin and a token is that coins have their own Blockchain but tokens do not have their own Blockchain. Tokens rely on other Blockchain existing before their launch to operates. Some tokens get used as a currency but that is not their primary functions because tokens were created to bring varieties into the Blockchain industry instead of it just having currency like Bitcoin. There are some cryptocurrency that are both a coin and a token which Ethereum is an example. Some tokens can in the future become a coin when they start operating on their own Blockchain and not relying on other Blockchain to operate and this is how most projects that now have their own Blockchain started. BNB was a token before it developed its own Blockchain and now can be considered both a coin and token too.

[DPHOR]

I think we shouldn't get everything twisted and mixed up here because token is at the launching phase or seeding phase, you can acquire them directly from the project owners and it's very risky to invest on token when they are newly created because you can't defines the future of that token, while for a coin. We can say that are already established one that are being traded on reputed exchange that also has good utility and Usecase. So when we don't understand these two things we might mistaken them for the other.
NB; We have shitcoin, and we also has token that shit-token which can likely be dump, to me i often term all memecoin to be shitcoin because they are likely to dump or got rugged pulled at any give time.

[Liliana1304]

Nah very good explanation @sweetness drop give us and I no go lie say I dey usually confuse the two words and sometimes think say person fit use them interchangeably.

I get question o. Assuming these tokens no do well on these Blockchain wey them dey tie themselves to, wetin go be their fate?

[Justbillywitt]

Nah very good explanation @sweetness drop give us and I no go lie say I dey usually confuse the two words and sometimes think say person fit use them interchangeably.

I get question o. Assuming these tokens no do well on these Blockchain wey them dey tie themselves to, wetin go be their fate?

Good question, well as a project owner if you notice that your project isn't doing very well on the Blockchain you built it on, you can migrate to another Blockchain, that you think will give your project the required audience/exposure. That's why you will hear people or project owners saying that they are migrating to another Blockchain. And when this happens, you either swap the tokens for your holders automatically or manually. Automatically the community don't need to do anything else as they will receive the new token in their wallet, according to the swapping ratio without doing anything. While the manual swapping will require your holders to do the swapping on their own. With the guidelines/instructions which the project owners will provide.

[Liliana1304]

Nah very good explanation @sweetness drop give us and I no go lie say I dey usually confuse the two words and sometimes think say person fit use them interchangeably.

I get question o. Assuming these tokens no do well on these Blockchain wey them dey tie themselves to, wetin go be their fate?

Good question, well as a project owner if you notice that your project isn't doing very well on the Blockchain you built it on, you can migrate to another Blockchain, that you think will give your project the required audience/exposure. That's why you will hear people or project owners saying that they are migrating to another Blockchain. And when this happens, you either swap the tokens for your holders automatically or manually. Automatically the community don't need to do anything else as they will receive the new token in their wallet, according to the swapping ratio without doing anything. While the manual swapping will require your holders to do the swapping on their own. With the guidelines/instructions which the project owners will provide.

Thank you for this one. True true, knowledge full for here.
Make I know one more thing; as you the project owner dey move your project go another Blockchain, you go pay anything like fees to stay for that Blockchain? Like as you dey do when you wan rent space or nah say as you dey patch for that Blockchain, a certain percentage dey go back to them?

[Josefjix]

I get question o. Assuming these tokens no do well on these Blockchain wey them dey tie themselves to, wetin go be their fate?

Nothing, absolutely nothing, as far as the token meet up the blockchain network fee, it's non of their business. The team behind a token chooses out the best coin that's affordable, scalable, with faster transaction speed to run their project. So it's up to the team to provide the best services as well the best use cases for their token to be highly demanded to streamline it's price increase and stability. How many failed projects have you experienced on the ethereum blockchain, many, do ethereum injunct on these failed projects, NO

[BIT-BENDER]

I get question o. Assuming these tokens no do well on these Blockchain wey them dey tie themselves to, wetin go be their fate?

You are always warned that you should do your own research first and also many advice has come about all these projects, you should bear in mind that if they fail you have lost, their is no law that is guarantees you anything when you invest in those projects.
Also when those projects rug pull and they head of the project is known maybe a celebrity there are times they have been called for questioning, a good example of the hauk tauh girl but even at that what ever you have lost is still gone.

[Hatchy]

But a token are just crypto create without a network, but operate on either any of these Blockchain network listed down above, the typical example of that is hamster, dogs or cat operating on the Ton network or pepe operating on the enthereum network.

I go like make Una go through this thread by 1miau, wey e take explain the difference between coins and token. The guy explain am wella so even our newbies them go understand finish... I go drop the link to the pidgin translation because say na Localboard we dey.... Important to know: Difference Coin / Token and shady marketing practices

[Liliana1304]

Thanks to @Bit-bender, josefjic and justbillywit for una insightful answers. We dey learn every day and I happy as una drop una answers without malice or as if we newbies too ask questions.

[Pablo-wood]

Tokens and coins are both crypto currency and both can be exchanged for a value or swapped between other crypto currencies or fiat. The  difference between the two is  that while coins exist on their own Blockchain, tokens exist on an existing Blockchain. But one major similarity both of them share is that both are digital assets that can be traded on exchanges. Also while Coins majorly serves as medium of exchange tokens on the other hand serves a wider functionality eg.  In voting tokens can be a reward for participating, in gaming tokens can be also serve as reward for each level conquered.

[Lida93]

Thanks to @Bit-bender, josefjic and justbillywit for una insightful answers. We dey learn every day and I happy as una drop una answers without malice or as if we newbies too ask questions.

Thanks to @Bit-bender, josefjic and justbillywit for una insightful answers. We dey learn every day and I happy as una drop una answers without malice or as if we newbies too ask questions.

Try take time use read the thread of 1miau  way Hatchy drop link for. You get a better simplified insight in addition to the small one wey others don talk about for here. Even me sef when I read that thread I discovered new  things add to the knowledge I knew about coin and token before. Especially the area way person gat dey care and probably take as red flag to  any project wey be token come the disguise as coin. I just like the this forum cos knowledge for here no dey end.

I go like make Una go through this thread by 1miau, wey e take explain the difference between coins and token. The guy explain am wella so even our newbies them go understand finish... I go drop the link to the pidgin translation because say na Localboard we dey.... Important to know: Difference Coin / Token and shady marketing practices