Question about Coins vs Token on a Layer 1 Cryptocurrency

Question,

As I understand it, the value exchanger or currency on all layer 1s (Bitcoin, Ethereum, Cardano, etc) is always called a "Coin" (bitcoin, ether, Ada, etc).

The currency or value exchanger on a Layer 2 (Hiro, Loopring, Polygon, etc) is called a "Token" (Stacks, LRC, Matic, etc).

Is there ever an instance where a "token" can appear on a Layer 1? Like, is there some sort of Smart Contract situation that creates a layer 1 token that exists to fulfill the requirements of the contract? Or is there any other situation where a layer 1 might create a "token" instead of a "coin"?

Thanks