The product is actually internet hosting as a service. It is being administered by an autonomous artificial intelligence, who runs the books and decides who owes who how much. That AI is its own corporation, and is a separate entity from the Ethereum Foundation, which created it and organized the initial public offering of web hosting tokens. The tokens can be exchanged for hosting.

They have some value on the open market which is a function of how much people are willing to pay for Ethereum hosting and how much people think people will be willing to pay for it in the future.