Ethereum Token: What They Are, How They Work, and What You Need to Know
When you hear Ethereum token, a digital asset built on the Ethereum blockchain that can represent anything from currency to ownership rights. Also known as ERC-20 token, it’s the backbone of most decentralized apps, from lending platforms to meme coins. Unlike Bitcoin, which is mainly digital cash, Ethereum tokens are programmable. They’re created using smart contracts—self-executing code that runs on Ethereum’s network. That’s why you see tokens for everything: voting rights in a DAO, access to a game, or even a share in a real estate project.
Not all Ethereum tokens are the same. Some follow the ERC-20, the standard for fungible tokens used in trading, staking, and payments, like USDC or Chainlink. Others use ERC-721, the standard for unique, non-fungible tokens that represent one-of-a-kind items like digital art or collectibles. Then there’s ERC-1155, which blends both. These standards make it easy for wallets, exchanges, and apps to recognize and handle tokens without reinventing the wheel each time.
Most DeFi projects you’ve heard of—Uniswap, Aave, Compound—run on Ethereum tokens. They let you lend, borrow, or trade without banks. But that also means risk. A token with no team, no audit, and no real use case can vanish overnight. Look at tokens like HOTCROSS or TRI—once hyped, now dead. The Ethereum network itself is secure, but the tokens built on top? That’s where the wild west begins.
You’ll find plenty of examples in the posts below: tokens tied to AI tools, stablecoins swapping across borders, meme coins with zero trading volume, and even fake exchanges pretending to list real ones. Some tokens are built for utility. Others? Just hype. The difference isn’t always obvious. But knowing how Ethereum tokens work—how they’re made, how they’re traded, and what makes one worth holding—helps you cut through the noise.
Whether you’re looking at a token airdrop, checking a new DeFi platform, or just trying to understand why so many coins sit on Ethereum, this collection gives you real stories—not theory. You’ll see what worked, what failed, and what to avoid before you send your first dollar.
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