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What is the difference between a coin and a token?

A coin is a digital asset that operates on its own independent blockchain. They primarily function as a medium of exchange, similar to traditional fiat currencies. Examples include Bitcoin and Ethereum. They have various use cases, from governance to gas payments, and are often modeled to be deflationary.

Most coins have a fairly limited supply that is scarce, not often circulating at the same time in the early stages. For example, there will always be 21 million Bitcoins, with 19.8 million currently in circulation.

A token is a digital asset that operates on an existing blockchain network. They are often associated with a specific project or protocol within the blockchain ecosystem and can have various functions, such as granting access to certain features or representing ownership of digital assets. Examples include ERC-20 tokens, BEP20, and TRC-20. All meme coins are tokens.

The nature of supply for most tokens is not deflationary, as they are not scarce; they are only meant for short-term trading. That is why they are minted in the billions and even trillions to meet current trends. A typical example is Shiba Inu, Bonk, and Notcoin.

Coins are harder to maintain because they require a functioning blockchain to develop, while tokens can be minted in a flash as they only leverage the infrastructure provided by the coin's ecosystem...