Companies conducted Initial coin offerings (ICOs) to offer coins and tokens to the public for raising funds. With Blockchain and Crypto being in the buzz, many newbies consider them the same and buy without knowing exactly how they work. In reality, both are as different as oranges and lemons, but interrelated.
A Cryptocurrency Coin is a digital currency that is used as a medium of exchange. It holds value and can be used for trading as well. A coin operates on its own Blockchain, independently of any platform. There are 1,658 Cryptocoins circulating in the market. A few of the famous coins that run on their Blockchain are the Bitcoin, Litecoin, Ripple XRP etc.
A Cryptocurrency Token is a digital asset which is given out during a project/ICO that not only holds value, but also gives the token holder, rights. They include voting rights, right to equity, loyalty points, rewards, rights to access etc. depending on the function and type of tokens. Token offer value to the buyer and cannot use as a mode of payment.
An analogy to coins and tokens can be money and movie tickets. You can use the money to buy tickets just as you can use coins to buy tokens. A ticket holds a value of the money you have spent, but one cannot buy anything with it. Similarily, only coins can be used as payment of services and not tickets.