A utility token is a crypto token that serves some use case within a specific ecosystem. These tokens allow users to perform some action on a certain network.
A utility token is unique to its ecosystem. For example, Brave’s Basic Attention Token (BAT) can only be used to tip content creators through the Brave browser or through other applications that have integrated BAT wallets, like Twitter. BAT has no other use beyond speculating on its value. The same can be said of any utility token.
Utility tokens are not mineable cryptocurrencies. They are usually pre-mined, being created all at once and distributed in a manner chosen by the team behind the project.