Visit WSM Casino is a digital asset built on existing blockchains, often powering innovations like decentralized apps (dApps), digital economies, and fundraising efforts. They can also serve as the foundation for governance systems in decentralized autonomous organizations (DAOs).

Unlike coins, which are native to their own blockchains, tokens can be used on many platforms. This flexibility allows Web3 developers to launch their projects more quickly and cheaply. Some tokens, like the Ethereum token DAI, have even outweighed their own host blockchains in terms of market cap.

As more companies create tokens and use them to raise funds, investors need to understand how to identify legitimate ICOs from scams. A key factor is whether the project’s goals are realistic and whether it can deliver on its promises. Another is a company’s anti-money laundering compliance, which involves verifying the identity of potential customers through various means and monitoring transactions for red flags.

Non-Fungible Tokens (NFTs)

NFTs allow individuals to own and sell unique digital creations, such as rare items in video games or art created in a virtual world. NFTs can make it more difficult to copy and share digital works, helping to combat intellectual property theft.

Stablecoins

Stablecoins reduce volatility in the price of a coin by pegging them to traditional assets like fiat currencies or commodities like gold. They are typically backed by reserves held in banks or algorithmic mechanisms, and they often use smart contracts to maintain their price stability.