A complete breakdown of tokens (Token), with domestic regulatory red lines

I. Basic definition

A token generally refers to a digital credential issued based on blockchain distributed ledger technology. On-chain it records rights, permissions, and asset ownership. In the crypto industry context, “Token” is often referred to as a token or a utility token. A token itself is only a technical carrier, and its value is determined entirely by the purpose behind it and the underlying assets.

II. Common types of tokens in the coin world

1. Native coins of public chains (mainstream crypto tokens)

Bitcoin BTC and Ethereum ETH fall into this category. Their core role is to pay on-chain transaction fees and support the operation of the blockchain network. Value is determined by market supply and demand, with no underlying tangible assets. China has clearly stated that trading, exchange, and token issuance related to these virtual currencies all constitute illegal financial activities.

2. Stablecoins

Tether USDT, USDC, etc. Their price is pegged to fiat currencies such as the US dollar. They maintain price stability through reserves-backed collateral. In the crypto community, they are commonly used for trading and exchange. In China, any virtual-currency exchange and stablecoin-related trading services are strictly prohibited, and stablecoins pegged to the RMB are banned from being issued.

3. Utility tokens

Function tokens of project platforms. Holding them allows users to obtain platform membership, use project services, and unlock permissions. They do not promise price appreciation or depreciation, and most are credentials within the project ecosystem.

4. Securities-type tokens (ST, RWA tokenized real-world assets)

Tokens correspond to real-world assets such as equity, bonds, real estate, and commodities. They represent claims to asset income and ownership. In essence, they are digitized financial products. In China, without approval, all asset tokenization and token financing activities are illegal financial activities.

5. “Air coins” and MLM tokens

No real technology, no real-world use cases, no operating team. These are worthless tokens issued by project teams, with the sole purpose of extracting value from retail investors. Most altcoins and “tu dog” tokens fall into this category, which makes it easy for projects to disappear with funds, go to zero, or involve scams. #代币