It is understood in the business world that there are 3 classes of crypto tokens; namely, Utility, Security and Equity. Out of these 3, the most popular one is utility. Utility tokens are unlike company stocks, as the value of this type of token is not dependent on any corporate entity, but instead comes from user activity inside the platform. It is a more liquid medium of exchange that provides holders access to the value created by a blockchain network. To summarize its definition, utility tokens represent the service delivered by a network.

One example of a utility token is the DAV Token from the blockchain-based open source company DAV Foundation. DAV Foundation has developed a platform called the DAV Network, whose focus is to connect logistics and transport service providers to customers or to those who are in need of their services which include autonomous vehicles.

In exchange for the services of the DAV Network, those who are interested in the platform will provide DAV tokens. With this set up, the more people who become interested in the platform and services, the more tokens will be provided. This is a mindset that is both beneficial to the company and the users.

When it comes to Initial coin offerings, holders encounter various factors and this includes utility tokens. These type of tokens can be very useful to investors but it is also crucial to understand them first, and to know the ins and outs, in order for investors to appreciate and benefit from its features.

Since ICOs and crypto tokens are getting more popular these days, Õpet is here to be your source of business information. Rely on us here at Õpet to provide the knowledge you need to understand the things that are being used by start-ups. One of them is utility tokens.