Defining tokens

The article presents a framework for seven categories of tokens that entrepreneurs most often build: network, security, company-backed, arcade, collectible, asset-backed, and memecoins. It explains that network tokens derive value from a blockchain's programmatic functioning and may be excluded from U.S. securities laws when decentralization mitigates trust dependencies. Security tokens digitally represent securities such as company shares or corporate bonds and remain subject to U.S. securities laws. Company-backed tokens depend on a centralized organization and, when they attract investment, are likely subject to those laws, while arcade and collectible tokens are generally excluded from them.