Jump to content
  • Sky
  • Blueberry
  • Slate
  • Blackcurrant
  • Watermelon
  • Strawberry
  • Orange
  • Banana
  • Apple
  • Emerald
  • Chocolate
  • Charcoal

Welcome to your community. We would like you to take a minute and read our newcomers guide.

Sign in to follow this  
cryptofreak

Don't know what to do with useless crypto tokens?

Recommended Posts

We are in a crypto market meltdown for a year now and we've all been taken from one extreme to the other. We've got to a point where any talk about tokens, bad or good, struggles for money and legitimacy.

 

Finding the middle ground

Token-economics is not a concept with meaningless activity, and we can see some proof in the incentive systems of Bitcoin and Ethereum which have sustained decentralized communities in creating products and exchanging value. To think people will make use of similar models across different mainstream industries, when their means of securing life’s necessities depend on compulsory centralized systems is also misplaced.

Casting away token economics in total would be a big shame. The fact that there is a general doubt in online media data, and that the building of independent solar microgrids are obstructed by electric utilities, a lot has gone wrong around the globe which needs to be overcome. If digital asset system can make communities enter into exchange without the need of placing their trust on intermediaries.

 

Make the wise choice

This is a double-edged challenge: Getting to know the most viable models as a starting point and possible ways of bringing them to the market.

A very good place to begin are industries where the traded product is already a formed item of digital value like entertainment, gaming or online media. Lots of projects would do well to build a market that initially makes fiat money, but with plans to bring in a token model as times go on. 

This is to say that, a good number of token startups who have generated nothing near a critical mass of users should make plans to first of all create a pre-token community or build a token model on top of an existing community.

This will lead to real-world questions related to gaining access to financial resources and sustaining self-funded growth.

 

Harsh Reality

ICO issuers, especially those that either failed to raise more than enough funds or those that kept too much of their funds in devalued cryptos or both, are faced with some tough questions: At first, how do you fund business development? Venture Capital? Loans? Founder Money? etc.

These options facing them were highlighted in two stories that occurred last week. One happened with Michael Novogratz's crypto-dedicated merchant bank Galaxy Digital. To offer credit to upcoming crypto firms, they created a $250M fund. In hard times, as long as your product is viable, credit will always be an option.

The second story has to do with BEE Token, whose ICO promised a decentralized platform, has diverted from a token appreciation model to one that requires a fee for services to be rendered.

It's now obvious that crypto companies, in order to survive hard times, are pivoting on their funding and revenue models. What we can hope for is that those utilizing the traditional methods can hold back the pressure from investors both within and outside, to simply hold on to the more centralized models required by these approaches.

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×