Which of the following is considered a 'Token' rather than a 'Cryptocurrency'?
Explanation
Utility tokens provide access to a service, distinguishing them from pure currencies.
Other questions
Which of the following best defines Distributed Ledger Technology (DLT)?
What are the three primary components of Distributed Ledger Technology?
What is the primary function of a Consensus Mechanism in DLT?
How does blockchain differ from a generic digital ledger?
Which of the following best describes a 'Smart Contract'?
What distinguishes Proof of Work (PoW) from Proof of Stake (PoS)?
In the context of DLT, what is a 'Permissionless' network?
Which of the following is classified as a 'Cryptocurrency' rather than a 'Token' in the provided hierarchy?
What is the primary characteristic of a Stablecoin?
What role do miners play in a Proof of Work network?
Which type of digital asset is specifically designed to represent unique, non-interchangeable items?
What defines a 'Direct' investment in digital assets?
Which of the following is a risk associated with using Cryptocurrency Wallets?
What is a characteristic of Decentralized Exchanges (DEX)?
Cryptocurrency Coin Trusts typically function most similarly to which traditional investment vehicle?
Which investment form allows trading of digital asset exposure on traditional exchanges and replicates returns?
What is 'DeFi' (Decentralized Finance)?
What is a primary challenge facing the DeFi sector according to the text?
How is the correlation of digital assets with traditional assets generally described?
Why is the valuation of cryptocurrencies particularly difficult?
What defines a 'Permissioned' network?
What is the purpose of a 'Governance Token'?
What is 'Altcoin' short for?
Which indirect investment form involves agreements for future trading that are cash-settled?
What are 'Asset-Backed Tokens'?
Which risk is specifically mentioned regarding Centralized Exchanges (CEX)?
What is a potential advantage of DeFi mentioned in the text?
Hedge funds in the digital asset space are noted for engaging in which activity?
What is the relationship between 'mining rate' and digital assets?
Which component ensures near-real-time transparency in a DLT system?
What does 'Cryptography' in DLT primarily utilize methods for?
Which form of digital asset is a 'CBDC'?
What are 'Memecoins' classified as?
Which of the following is an example of an 'Indirect' digital asset investment form?
Which digital asset token type is most likely to represent a stake in an external asset or enterprise?
Which DLT component contains the history of all transactions?
What is a characteristic of 'Permissionless' networks regarding central authority?
How do 'Cryptocurrency Stocks' provide exposure to digital assets?
What is a 'Utility Token' primarily used for?
Which risk factor is explicitly listed for Direct Digital Asset Investment Forms?
What is the key difference between a digital ledger and a traditional ledger?
Which consensus mechanism involves a 'lottery' for block validation?
Digital assets historically show what kind of correlation with traditional assets?
What is the primary feature of 'Smart Contracts' regarding execution?
What type of asset does an NFT represent?
Which of the following describes the volatility of digital assets?
What does 'PoS' stand for in the context of DLT?
Which investment form involves digital forms for non-digital assets?
Legal and regulatory uncertainties are cited as a factor in which aspect of digital asset investment?