With the development of NFT and DeFi and more individuals issuing socialized personal tokens, “socialized tokens” may become an encryption phenomenon in the future.
Original title: “The Rise of Social Tokens”
Author: Blue Fox Notes
In recent months, social tokens have shown signs of rapid development. The overall market value of social tokens exceeded $200 million, and in May of this year, it was still in a state of almost negligible value.
What is a social token?
Social tokens are tokens issued by individuals. Blue Fox Notes previously talked about “Personal Encrypted Bond Era: NBA Players, Ethereum and Personal Bonds”. This is a part of social tokens, which will be personal value tokens. It can include work, assets, etc. Social tokens are often issued by individuals with a certain ability or influence, such as artists, athletes, experts, etc., and a certain number of communities participate. Of course, not only celebrities can publish, various KOLs or experts can also issue social tokens. For the sake of simple understanding, social tokens can also be regarded as community tokens issued by individuals.
The rise of social tokens
As of the writing of Blue Fox Notes, among the social tokens, WHALE has the highest market value, reaching more than 43 million US dollars, and its diluted market value exceeds 100 million US dollars. This is the highest achievement that social tokens can achieve so far, even higher than the market value of most project tokens. In today’s more than 5900 token markets, it can rank around 180. For socialized tokens issued as individuals, it has reached a high level.
In addition to WHALE, CHERRY and COIN currently have a market value of more than US$1 million. In addition, the market value of KERMAN and SWAGG has dropped to US$610,000 and US$380,000 respectively.
The source of social token value
Social tokens are valued by individuals and communities led by individuals. The value of tokens like WHALE is supported by its NFT library. There are a series of NFT collections in WHALE’s NFT library. With the recent bullish NFT market sentiment, the value of NFT in WHALE’s NFT library has risen to more than 1.4 million US dollars.
(The value of WHALE’s NFT library portfolio has grown, SOURCE: NONFUNGIBLE)
WHALE tokens are issued by WhaleShark, which is a collector of NFT. WHALE tokens can be used to buy NFTs on the market and get the right to participate in the exclusive Discord group with rewards.
However, even if these NFTs still have a lot of room for upside, their current valuations are not low, with a market value of more than 40 million US dollars supported by more than 1.4 million US dollars of assets and a diluted market value of 100 million US dollars. To this end, WHALE also needs to expand its possibilities at all levels to support the fundamentals of its value.
At present, WHALE’s NFT library has not directly connected with WHALE tokens, but it plans to establish a direct connection between NFT and WHALE tokens through the DAO governance form in the future. The NFT in the NFT library can be used to lend and obtain rental fees. It can also cooperate with some digital artists to produce digital art collections that can only be purchased with WHALE tokens. WHALE attempts to expand its value capture capabilities through its NFT and cooperative plans.
In addition, in order to induce liquidity, WHALE also provides WHALE token incentives for users who provide liquidity for WHALE/ETH on Uniswap.
From the perspective of WHALE’s socialized token model, it is essentially more like an NFT investment fund initiated by individuals and participated by the community. With the later introduction of DAO governance, WHALE can also capture value through cooperation and other methods, especially with the development of the NFT field, it also has more possibilities. It can make full use of the power of the community to capture more value in the field of NFT and DeFi.
Let’s take a look at COIN. It is also a social token with a market value of about $1.7 million. It was released by Marguerite deCourcelle, who is the CEO of Blockade Games. COIN token is her personal token issued. If users want to join the Coin’s E-Den joint (Blockades signature game Neon District) organization and have the right to chat with private dicord, they must hold a certain amount of COIN tokens. COIN will also launch a liquid mining plan, allowing users to earn more COIN and CRED (the exclusive privilege token of Coin Artist NFT). The Coin Artist ecosystem will introduce NFT mining, Neon District game character mining, etc. In addition, users of Neon District can also mine unique NFTs by staking COIN tokens.
From the perspective of COIN’s model, it integrates social tokens, NFTs, mining and other elements, and uses the current main gameplay of the crypto world one by one. The development of its value is closely related to the development of game NFT.
KERMAN is also a personal social token issued earlier. It is a social token of Kerman Kohli. Kerman is an engineer and a product expert who also has research on the encryption economy. KERMAN tokens can be used to obtain services such as reposting Twitter, consulting, and one-year personal news weekly. This model relies more on the ability of individuals to support the value of their tokens, whose value comes from the degree of demand for services.
(Kerman issues social tokens for personal services, SOURCE: ROLL)
The possibility of social tokens
Judging from the current situation, social tokens have achieved initial success. WHALE, CHERRY and COIN all have a certain market value. Socialized tokens will have more and more individuals participating, especially those that are supported by actual asset value or actual service demand will be welcomed to a certain extent.
From the current point of view, if it is only to issue personal tokens, it may not be easy to gain the favor of investors based on personal time or work, because it is more difficult to determine its value support. However, with the in-depth development of NFT and DeFi, this situation may change.
At present, the well-developed social tokens, such as WHALE, CHERRY, and COIN, are combined with NFT and DeFi, which allows the social tokens themselves to have underlying value support. If WHALE’s NFT library becomes more valuable, then this means that WHALE will also become more valuable, and vice versa. COIN tokens can be value-related with the NFT in the game. This is also a very new practice, but at least it can support the possibility of value.
According to this development trend, some game KOLs can also issue their own social tokens, which can support the value of their social tokens with the NFT in their games; there are also investment masters who issue social tokens for their portfolios. Currency, and then its portfolio will also be governed and controlled by DAO; digital artists and athletes can also issue social tokens. For example, some popular digital artists can create a large number of digital art NFTs. The social tokens they issue can be supported by these NFTs. Only by using their social tokens can they purchase their NFT collections.
However, whether it is an investor or an artist, the issuance of socialized tokens, given that its ability to capture value has certain expansion limitations, it is somewhat difficult to grow into a token with a huge market value. It is not easy for a project like WHALE to reach a valuation of US$40 million and reach a market value of US$100 million after dilution.
If social tokens want to become tokens with a market value of hundreds of millions of dollars or billions of dollars, they need to expand the ability to capture the value of the tokens, for example, through the development of DeFi and NFT. This can be seen from the way WAHLE and COIN combine social tokens with NFT and DeFi. Of course, if the legal requirements can be met, and if celebrities can release social tokens, then tokens with a valuation of more than $1 billion may also be born.
As a new encryption field, social tokens are likely to continue to develop and achieve breakthroughs. During the development process, they will be deeply integrated with NFT and DeFi to give them real value.
As more individuals issue socialized personal tokens, it may become an encryption phenomenon in the future.
Source link: mp.weixin.qq.com
