When navigating the cryptocurrency market it can be difficult to distinguish between the “s— tokens” and tokens that actually provide value through a utility.
Firstly, one must understand the difference between a crypto coin and a crypto token.
A crypto coin can be described as “native” since it exists as the primary currency of its blockchain and does not share its blockchain with any other asset. The first cryptocurrency of its kind was Bitcoin BTC/USD, launched by Satoshi Nakamoto in 2009.
Second, in market cap cryptocurrency Ethereum ETH/USD has a native coin, but it also supports tens of thousands of tokens that have a utility in an ecosystem. A crypto token is a digital asset constructed on a pre-existing blockchain, which is why it cannot be native to a blockchain, rather it can be native to a decentralized project or app.
Here are three tokens providing a utility by issuing distributions to its holders through rewards and crypto dividends.
- VeChain VET/USD offers a payout rate of 0.000432 VTHO tokens per day per staking of 1 Vet. VeChain is a platform for smart contracts, similar to Ethereum, and derives its value from activities created by members within the ecosystem solving real-world economic problems.
- A benefit to holding VeChain is that you receive dividends in the form of VeThor VTHO/USD coins. If you invested $1,000 in VeChain at $0.0235 you would receive about 18.38 VTHO tokens per day.
- VeChain is also designed to strengthen supply chain management processes by enabling transparent information flow, efficient collaboration, and high-speed value transfers.
- NEO NEO/USD is the first public blockchain platform to adopt a dual token mechanism, separating the rights of governance from the rights of using the network.
- Token holders of NEO are the owners of the network and are able to participate in governance. Allowing users to participate in the ecosystem without diminishing their stake in the network. Holders of NEO tokens that play an active role in network governance will receive the most GAS GAS/USD tokens, receiving GAS tokens for every NEO held, no staking required.
- If you invested $1,000 in NEO you would receive about 4.23 GAS tokens per day, or 0.141 GAS tokens per month, when actively participating in network governance.
- KuCoin Shares KCS/USD offers passive income for holding at least 6 KCS tokens on the KuCoin platform, allowing users to receive a daily KCS Bonus, which is paid from 50% of KuCoin’s daily trading fee revenue.
- The KuCoin Platform currently provides crypto spot trading, margin trading, P2P fiat trading, futures trading, staking, and lending to its 8 million users in 207 countries and regions around the world. The trading fees will be paid in the form of KuCoin tokens, which depends on trading volume, and its estimated annual yield ranges from between 3% to 30%.
- Essentially, the more popular the KuCoin exchange gets and the higher the trading volume, users can earn more bonuses when staking KCS tokens. The Hong Kong-based cryptocurrency exchange will also allow token holders to receive exclusive promotions, rewards and offers from the exchange.
Image and article originally from www.benzinga.com. Read the original article here.