A Utility Token Offering (UTO) is a fundraising method where a project sells utility tokens to investors or users. These tokens grant holders access to specific features or services within a blockchain-based platform. Unlike securities, utility tokens are not intended as investments but serve practical purposes within the network.During a UTO, a project outlines how these tokens can be used, such as accessing a service, participating in a community, or transacting on the platform. This model allows developers to raise funds while providing tangible benefits to token holders.These offerings can be a way for startups to gauge interest in their projects and engage potential users early on. However, it’s important for investors to assess the project’s viability and understand how the tokens will function within the ecosystem. While UTOs can offer exciting opportunities, they also carry risks, as the success of a project is not guaranteed.