What Role Do Utility Tokens Typically Play in a Reverse ICO Structure?

Utility tokens grant holders access to a product or service within the company's new blockchain ecosystem. They are not intended to represent ownership or a share in the company's profits.

For an established company, these tokens can incentivize specific behaviors, such as network usage or data contribution. They function as the native currency for the platform, enabling transactions and rewarding participation.

This structure is often favored to try and avoid classification as a security.