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Pantone is a company that releases numbered colour swatches, used widely in any industry that needs colour, but especially print.

CMYK is Cyan Magenta Yellow Key (Black). Also known as process colour.

If you're producing your art for heat transfer or DTG use whatever you want. CMYK makes sense since that's how the printer will print it.

If you're producing it for screenprinting, using Pantone colours (also known as spot colours) will make the art a lot easier to separate into different colours for the different screens.
 
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