Utility Tokens are not Investments

Continuing with the never-ending theme of things crypto people make that also aren’t investments, next on the list, are utility tokens.

In theory, they’re actually not a bad idea. I often describe crypto tokens as gift certificates, and utility tokens are the best example of why. You’re basically buying the right to consume a service. In the context of software, it’s basically like buying a license. People have been buying digital licenses for years and when a new technology doesn’t require new behaviors it’s more likely to be successful. If you stop here and don’t go any deeper, this all looks pretty good.