Definition
A token is a digitally represented unit issued and transferred under a ledger or smart-contract system, with rights defined by its design and law.
In market context
Tokens can represent payment value, governance, access, claims, or other functions, and identical technical standards do not create identical economic rights. Supply controls, administrator permissions, custody, liquidity, smart-contract code, and regulatory classification all affect risk. A token appearing in a wallet or on a trading venue does not prove that it is authentic, valuable, redeemable, or lawfully offered to users.
Risk context
Malicious or worthless tokens can imitate legitimate assets and use approvals or smart-contract interactions to steal other holdings.
Source
Use the primary source for fuller regulatory or market context.