Why is API token important? Is it equal to password? Sorry, never heard anything about these things.
Good question. This is what he is banking on, other players don't know what the token is.
An example of correct use is the Multi-Day-Ladder, where games are created and scores (rating) is updated automatically. Basically, you can use the token to verify as a player (sort of logging in).
Bad use would be to spam games to level an account up for example.
API token is only given to members. It is, according to a lot of us, the best perk of a membership.