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A token is a digital asset that is built on top of a blockchain platform, such as Ethereum. Tokens can represent a variety of assets, such as digital currency, utility, or assets in the real world like gold, real estate, and more. They are created through an initial coin offering (ICO) or initial token offering (ITO), which is a fundraising mechanism in which a new project issues tokens to investors in exchange for funding.

Tokens can then be traded on various crypto exchanges, and can be used to access certain products or services. There are different types of tokens such as security tokens, utility tokens, stable coins and more.