Although it appears to be semantics, it does make quite a big difference for a cryptocurrency as to whether it’s a coin or a token.
A “coin” has an entirely different blockchain from all the other coins that are out there while a “token” is built upon an existing blockchain project.
A “coin” is usually built using open-source blockchain code so what’s underpinning many of the coins that are out there is a very similar architecture. Many projects will add some unique features to build upon what’s open-source, but the foundation is mostly identical.
A “token,” these days, is most often built upon Ethereum, becoming an ERC-20 token. The web architecture of the Ethereum blockchain is robust and familiar, so developers often opt to use this to streamline their coin. One disadvantage is if the Ethereum network gets overloaded, the cost of interacting with a smart contract or sending your crypto from wallet to wallet is going to be relatively expensive.
It largely depends on how ambitious you want to be with your project and how it best fits your crypto's use case. It's important to remember too that what you started out as you don't have to stay forever. Your project can always fork over to become a new coin or a token on whatever blockchain your team believes makes the most sense.
There is no such thing as a crytocurrency token!
If it walks like a duck and it talks like a duck. It’s actually a duck. The fact that people bought some tokens, expecting to make a profit, by definition (and by law in most jurisdictions) equals all tokens to securities or perhaps coins.
For a token to be a cryptographically utilizable, one had to have some form of a token economy, proving how the token would be used inside a defined ecosystem. In most cases those token economies were built on untested and unproven assumptions, without even having products, let alone users or customers. White papers described thriving token-economies, which promised growing demand for tokens, which in turn would result in dramatic price increases, turning the investment very lucrative. The fact that profit was expected proved beyond a reasonable doubt that utility tokens were in fact securities or coins.
Most tokens described in ICO’s are in fact securities or coins.
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