Qidax Pass QDP- A Coin or Token?

Recent gas price surge in Ethereum has reached a staggering level. According to ETH Gas station, users have spent 12,100 Ethereum in gas fees within the last 30 days, equating to around $4.6 million.

The rise of the gas fees in Ethereum blockchain is due to its congestion as a result of staking and investing in DeFi tokens, most of which are based on Ethereum, therefore inflating the gas price. The question is: Why are there so many token listings on ERC20 network?

In light of the possible circumstances like the gas fee surge, Qidax brings to you in this post the difference between Coin and Token. These two terms are used to describe units of blockchain value. Their meaning and usage overlaps considerably and they are often used interchangeably. What are the definitions of Coin and Token in tokenomics? What’s the difference between them in term of their governance?

Coin

A crypto coin is a crypto asset that has its own blockchain, as opposed to running on another crypto asset’s blockchain. A crypto coin is a cryptocurrency or a native token. The underlying idea is that the asset has its own blockchain.

The best known example of a coin in the blockchain space is Bitcoin, the original crypto coin/cryptocurrency. Other examples include Ethereum, Litecoin, etc.

Token

While coin has its own blockchain, a token is the opposite: it runs on another blockchain.

The best known example of this is the ERC20 token, which is any token that uses the Ethereum blockchain. Some example of ERC20 token are EOS (EOS), TRON (TRX), Binance Coin (BNB), OmiseGO (OMG), etc.

Qidax Pass(QDP) is a new emerging crypto running on Ethereum blockchain. Therefore, QDP is also a token.

Their Functionalities

A coin is usually used for one thing, for example, payment. Whereas, tokens have various use cases, which can include payments but also other things. For instance, when comparing a coin or cryptocurrency vs. utility token, utility tokens are used to access a product or service.

Qidax pass (QDP) is an ERC20 token that comes with various functions, including its use for discounted commission fees, entitlement as shareholders of Qidax exchange and fixed deposit income.

Whilst the definition will no doubt continue to evolve with the technology advancement in crypto world, most people therefore agree on the broad strokes: coin = cash, token = everything else.