A utility token differs from other types of cryptocurrencies in that it is designed to provide access to a particular product or service within a particular ecosystem. Unlike other cryptocurrencies like Bitcoin, which are primarily used as a means of exchange, utility tokens have a specific purpose within a particular platform or project.

Utility tokens are often created and sold during Initial Coin Offerings (ICOs) as a way to raise funds for a new project or platform. In contrast to security tokens, which are designed to represent ownership in a particular asset or company, utility tokens do not give investors any ownership rights.

Utility tokens are typically used to access features or services within a platform or ecosystem, and their value is often tied to the demand for that particular product or service. This is in contrast to other cryptocurrencies like Bitcoin, whose value is primarily influenced by supply and demand dynamics within the broader market.

Utility tokens are a type of cryptocurrency designed to provide access to a specific product or service within a blockchain ecosystem. Unlike other cryptocurrencies like Bitcoin or Ethereum, which primarily function as a medium of exchange or a store of value, utility tokens have a specific use case tied to a particular platform. For instance, they can be used to pay for services, access premium features, or participate in platform governance.

Utility tokens differ from security tokens, which represent ownership in an asset or company and are subject to regulatory oversight. They also contrast with stablecoins, which are pegged to a stable asset like fiat currency to minimize price volatility. The value of utility tokens is typically driven by the demand for the associated service, rather than market speculation or investment potential.