What type of assets are crypto tokens?

Crypto assets are securities contracts for speculative investments. This definition excludes stablecoins which are a form of debt product or deposit product.

Crypto assets are not currencies because they cannot fulfil the definition of money.

Crypto assets are not financial assets because they have no claims on income cashflows, underlying currency or commodity, or risk transfer between counterparties.

Crypto assets are not commodities because they have no intrinsic value needed to fulfil any productive economic activity or human need. Any hypothetical definition of their use value as a commodity depends on circular logic and is thus absurd.

Crypto assets may also be a form of art under the fuzzy definition of "artistic intent".

See the assets comparison chart for an overview of how crypto asset compare to traditional investments and currencies.


While crypto assets are securities contracts, they are a pathological form of a zero-income security because they have no underlying asset or cashflows. Thus crypto assets have no direct correspondence in traditional markets, but have several pathological equivalences of traditional assets with absurd premises or terms.


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