Utility token vs security token

Examples of utility tokens include Filecoin, Siacoin, Golem (GNT), and Basic Attention Token (BAT) .

Because they’re far more like promotional tools and don’t grant ownership stakes in companies, utility tokens aren’t considered investments . Utility tokens can grow in value if what your token represents suddenly becomes very popular and in demand.16 Kas 2021

The ERC20 Ethereum standard is the most common type of utility token using it , companies build decentralized applications on the Ethereum blockchain and launch ICOs using the tokens.