> For the complete documentation index, see [llms.txt](https://docs.coinfactory.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.coinfactory.app/resources/faqs/why-create-an-erc20-token.md).

# Why create an ERC20 token?

The ERC20 standard is the most widely used standard among all. These are the tokens we use every day (USDT, WETH, PEPE, FLOKI etc).

They have a wide range of applications, including the following use cases:

* Tokenization of assets: Tokens enable the representation of physical or digital assets, such as stocks or currency, in digital form on the blockchain.
* Fundraising: Projects can attract investments and funding by issuing their tokens and offering them to investors.
* Loyalty and rewards: Companies can create their tokens to incentivize customers and users.
* Meme coins: Tokens associated with internet memes can be used for jokes and entertainment.
* DApps: Tokens provide the necessary liquidity and functionality for decentralized ecosystems, including payment for services, stimulating user activity, and participation in voting.


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