Utility Token

A utility token is a crypto token whose stated purpose is to give access to a product or service, for example paying network fees, unlocking features, buying in-app resources or reaching a service tier, rather than to represent an investment in a business. Issuers often use the label to argue that a token is not a security, but regulators look at how a token is actually sold and marketed, not at its name. A token promoted with promises of profit from other people's efforts can still be treated as a security. In practice a utility token's usefulness depends on whether the network people need actually exists and works; without genuine demand for the underlying service, there is little supporting the token.