Coin vs token, the short version
Coins come with a chain; tokens are made by programs on top. The difference, why names prove nothing, and how to check a real token from a knockoff.
Coin and token get mixed up constantly, even by people who've been in crypto a while. The difference is simple, and once you get it, one of the most common scams becomes easy to spot.
Coin: built into the chain
A coin is the native money of a blockchain. It comes with the chain itself. On Solana, that's SOL. You need it to pay transaction fees on Solana, even when what you're sending is something else.
There's only one native coin per chain, and the chain's own software defines it.
Token: made by a program on the chain
A token is created by a program running on the chain. On Solana, anyone can create one. They choose a name, a symbol and an image, and those are just labels.
What actually identifies a token is its address: a long string that points to exactly one token on the chain. Two tokens can share a name and a logo. They can't share an address.
The sticker test
Think of a brand's sticker. Anyone with a printer can make one that looks identical. If you want to know whether it's real, you don't look at the front, you check where it came from: the shop, the brand's own table, the box it shipped in.
Tokens work the same way. The front (the name and the logo) is easy to copy. The source (the address, posted on the project's own site) is what you check.
A worked example: two "official" tokens
Say a reply under a skate video says: "The official token just dropped, here's the link." You see two tokens with the same name and the same logo.
- Ignore the name and logo. They're identical on purpose.
- Go to the project's own website by typing it in, not through the link in the reply.
- Look for an address posted there. If the site doesn't list one, there's no official token to find.
- Compare the address character by character, start and end, with the one you were sent.
- If anything doesn't match, or the site lists nothing, it isn't official. Close it.
In this case, the project's site lists no address at all. So neither of those tokens is real, however many replies push them.
What this means for Skate Labs
Skate Labs has nothing for sale on-chain right now. So a "Skate Labs token" in your replies or DMs is fake, and nothing official is announced by DM. You also don't need any token to play Global SKATE.
Quick comparison
- Coin: native to the chain, one per chain, pays fees. On Solana, SOL.
- Token: made by a program, anyone can create one, identified by its address.
- Both: live at addresses on the chain, and both can be sent, which means both can be sent by mistake.
How Solana identifies a token
On Solana, each token type is defined by its mint address: the account that says "this token exists, here's its supply and its rules". Wallets read the name and image from the token's details, but the mint address is what they actually track. That's why two tokens with the same name show up as two separate lines in a wallet: they have two different mint addresses.
When a project publishes an official token, it's that address you're checking against.
"Wrapped" versions
Sometimes you'll see a token called "wrapped" something. That's a token on one chain that stands for a coin from somewhere else, or for a chain's own coin in token form so programs can handle it like any other token. It isn't the coin itself, it's a token that represents it, and it has its own address like any other token. Same rule applies: check the address, not the name.
Common mistakes
- Trusting a name or a logo. They're the easiest things to fake.
- Copying an address from a reply. Get it from the project's site.
- Checking only the first few characters. Lookalike addresses often share a start. Check both ends.
- Thinking you need a project's token to use the project. For Global SKATE, you don't.
FAQ
Can two tokens have the same name?
Yes. Names aren't unique. Addresses are.
Is SOL a token?
No. SOL is Solana's native coin, built into the chain.
Why do I need SOL to send a token?
Every Solana transaction pays its fee in SOL, whatever is being sent.
How do I report a fake using the Skate Labs name?
Email support@skatelabs.app and tell them where you saw it.
Next: Transactions and fees on Solana
Join the testers at skatelabs.app/testers and play a Game of SKATE with your friends. Global SKATE is free and in testing on iPhone and Android.
