A hybrid token combines features of both utility and security tokens. It aims to serve multiple purposes within a blockchain ecosystem, catering to different use cases for users and investors.Utility tokens give holders access to specific services or products within a platform, while security tokens represent ownership in an asset or company, often providing holder rights such as dividends and voting. Hybrid tokens, therefore, allow projects to offer functionality and investment benefits simultaneously.This versatility can attract a broader audience, as users may benefit from both immediate access to services and potential future appreciation of value. However, the regulatory landscape regarding hybrid tokens can be complex, as they may need to comply with different regulations depending on how they are classified. In many cases, hybrid tokens enable teams to fund projects while also maintaining community engagement, creating a more dynamic ecosystem. As such, they represent an evolving approach to tokenization and the diverse needs of users and investors.