Blockchain News & Insights

Key Takeaways A token’s utility describes what it does, but only a designed link between value and the token gives anyone a reason to hold it. A token becomes an economic asset when it captures value directly through fees, revenue or claims, or indirectly through scarcity and incentives. Asset-backed tokens trace value to outside assets, but the model only holds when the link to the underlying asset is real, not just stated. In This Article Why utility doesn’t create value What makes a token an economic asset Value is designed, not declared Asset-backed tokens and real value What token holders hold Most tokens are described through what they do.