The world of cryptocurrencies is constantly evolving. For example, when we talk about the types of cryptocurrencies, or digital assets in general, there’s no definite way to name all the types. Because there are already so many types of coins. Take the example of utility tokens, which are probably the most famous of all types of cryptocurrencies. Then, there are meme coins, which are completely different from utility tokens and various other cryptocurrencies.
Whether you’re a crypto enthusiast looking for the next big thing in the crypto space or a learner seeking knowledge about Meme Coins Vs. Utility Tokens with real-world examples, you’re at the right place. Here’s all you need to know about the two most popular types of crypto assets.
What are utility tokens?
Utility tokens are cryptocurrencies that are created for specific utilities, uses or applications within their respective platforms or ecosystems.
Unlike regular cryptocurrencies or digital currencies, utility tokens may not always support digital transaction capability, unless it is required by their systems.
Examples of utility tokens include ETH, BNB, and UNI. UNI is the native utility token for the Uniswap exchange and is primarily utilized by the network participants to participate in governance votes within the Uniswap ecosystem.
Each utility token has its specific uses and applications, which fuels its growth and future price appreciation. Because the token has real use cases, there remains a demand for it in the market, thereby maintaining or increasing its value over time.
Some utility tokens are created with their native blockchains. However, most of the utility tokens out there have been created on other popular blockchain platforms such as Ethereum, Binance Chain, TRON, etc. This way of utility token creation is easy and cost-effective.
What are meme coins or tokens?
Meme coins are a type of cryptocurrency inspired by popular internet memes or trends. These cryptocurrencies don’t usually have specific utility or purpose beyond community-driven representation for specific memes.
A popular example of meme cryptocurrencies is Dogecoin, which was originally created as a joke on the iconic Shiba Inu dog meme (photo). Despite its comic roots, Dogecoin became immensely popular and successful over time and has gained a significant following as well as appreciation in market value.
Meme coins, unlike utility tokens, have no real use cases and solely rely on demand, hype and popularity rather than any core concept, underlying technology or real-world uses. More than just an investment, meme coins are generally a symbol of a popular trend, a meme, a person or anything else. They can offer both short-term entertainment and long-term opportunities, as we have seen in the cases of DOGE and many other successful meme coins.
Meme Coins Vs. Utility Tokens: what’s the difference?
What is the Greek Freak Token (GFT), a meme coin or a utility token?
Greek Freak Token, or GFT, is a meme cryptocurrency created to identify and honor the famous basketball player and NBA star Giannis Antetokounmpo, also known as Greek Freak. GFT aims to become the first-ever meme coin to represent and celebrate the legacy of the Greek Freak.
Greek Freak Token (GFT) is a pure meme coin and has no utility whatsoever. The value of GFT grows purely based on the market sentiment and depending on its demand and supply. Even though the token has no utility, it can still be used as a store of value. It’s meant to represent (and celebrate) the meme behind the nickname “Greek Freak” given to Giannis Antetokounmpo for his unmatched combination of size, agility and speed.
Buy GFT tokens at https://pancakeswap.finance/swap?outputCurrency=0xA4139Db0626a5cf9AFF524F03A24bA6F88e54DcD
Originally published at https://medium.com/@greekfreaktoken/meme-coins-vs-utility-tokens-where-does-the-greek-freak-token-gft-fit-in-bd51d9f55da4