What is a token in cryptocurrency?

A token in cryptocurrency is a unit of value issued on a blockchain that represents a specific asset or utility. Unlike coins such as Bitcoin or Ether, which operate on their own native blockchains, tokens are typically built on top of other blockchain platforms, most commonly Ethereum. Tokens can serve a variety of purposes, including representing ownership in a decentralized application (dApp), granting access to services, or serving as a medium of exchange. They can also be used in the context of fundraising through Initial Coin Offerings (ICOs) or as rewards in decentralized finance (DeFi) applications. The value of a token is largely dependent on its utility and demand within its specific ecosystem.