## What is a coin in the world of cryptocurrencies

In the digital economy of cryptocurrency networks, a coin is an independent digital asset that operates on its own independent blockchain. Unlike tokens, which are often endowed with additional functions such as community voting, rights to storage in cloud services, a coin exists as a primary medium of exchange, requiring no support from another platform or registry.

## Main functions of the coin on the blockchain

Every blockchain functions as a decentralized distributed ledger that records and verifies all transactions of participants. The native coin of a specific network acts as the currency within this financial system. Accordingly, coins are used as a tool for storing value and conducting transactions. The transfer of coins is only possible between participants of the corresponding blockchain and occurs according to its protocol.

## Trading and exchanging coins

A coin as a unit of value obtains its market price depending on current market conditions. The exchange of the coin for other crypto assets is carried out in several ways: through centralized cryptocurrency exchanges, with the help of decentralized trading platforms, direct transfers between users (P2P, OTC transactions ), or through atomic swaps. These methods allow converting a coin from one blockchain into a token or coin of another network.

## The History of Coin Emergence: The Role of ICOs and Tokens

Before launching their own blockchain, many cryptocurrency startups raised investments through Initial Coin Offerings (ICO). The main wave of these campaigns took place on the Ethereum network, where organizations issued tokens in accordance with the ERC20 standard instead of creating their own coin. During the ICO campaigns, startups accepted Bitcoin, Ethereum, fiat currencies, or other crypto assets as payment. In some cases, the issued tokens were considered an intermediate stage and were later exchanged for the native coins of the fully deployed blockchain.