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Coin vs Token

A coin is a chain's own asset; a token lives in a contract on someone else's chain. That difference sets fees, rules and how easily it was created.

In conversation the two words are interchangeable; structurally they are not. A coin is the native asset of its own chain — it pays that chain's transaction fees and comes into existence through the chain's own rules, which change only when the network itself changes. A token is an entry in a smart contract deployed on someone else's chain, and its behaviour is whatever that contract's code says it is. Three consequences follow directly. Moving a token still costs a fee payable in the host chain's coin, so it is entirely possible to hold a token and be unable to move it because you hold none of the coin. A token's rules may include minting, pausing, blacklisting or a transfer fee, none of which apply to a chain's native coin. And deploying a token requires only a transaction, so the existence of one implies nothing about the seriousness of whoever created it.

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