Crypto Assets Categories

Stuff that you should hammer in your memory forever

Crypto Currencies

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. Currencies are defined by their liquidity; the ability of the owner to spend the currency.

Asset-backed Tokens

Tokens backed by assets can be used to represent commodities on a blockchain through virtual counterparts. For example, gold-backed tokens are pegged to the value of physical gold stored in vaults, while allowing anyone in the world to invest & purchase fractions of the supply, rendering it more fungible.

Utility Tokens

Are like digital vouchers that give the bearer the right to a product or service. They are not "money" themselves, but do have monetary value. A couple easy examples can be tickets at an arcade or carnival, that you can redeem for prizes, or like the fake money used in online videogames. As such, and as their name implies, they draw their value from the amount of demand for the Use Case of the Token.

Security Tokens

Represent "real investments" and all associated rights of shareholders in the applicable legislation. Whether an investment is to be considered a Security or not, depends on the Howey Test. However, ultimately what is and isn't a security is decided by authorities like the SEC in the USA or the AFM in our case, in the Netherlands. Find out more here.

NFTs (Non-Fungible Tokens)

"Fungible" means "divisible in smaller units". Non-Fungible means the opposite, each token is unique.

NFTs are a particular type of cryptographic token used to represent something exclusive, and are thus non-interchangeable with other crypto tokens. The most common application is artwork.