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The rise of social tokens

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The overall market value of social tokens is more than $200 million, and as recently as May this year it was almost negligible.

Original title: "The Rise of Social Tokens"

Source: Blue Fox notes

In recent months, there have been signs of rapid growth in social tokens. The overall market value of social tokens is more than $200 million, and as recently as May this year it was almost negligible.

What are social tokens?

The social token is a token issued by individuals. Before, Blue Fox notes once talked about"The age of Personal Encrypted bonds: NBA players, Ethereum, and Personal Bonds", which is part of the social token, the personal value of the token, can include work, assets, etc. Social tokens are often issued by individuals of some ability or influence, such as artists, athletes, experts, etc., with a certain number of community participants. Of course, celebrities aren't the only ones who can publish. Various Kols or experts can also issue social tokens. For simplicity's sake, social tokens can also be viewed as community tokens issued by individuals.

The rise of social tokens

At the time of writing, WHALE was the highest of the social tokens at more than $43 million, with a diluted value of more than $100 million. This is by far the highest social tokens can achieve, and is higher than the market value of most tokens. It ranks around 180 in today's 5,900-odd scrip markets. Social tokens issued as individuals have reached a high level.

CHERRY and COIN, among others, are now valued at more than $1 million, while KERMAN and SWAGG have fallen to $610,000 and $380,000, respectively.

Source of value of socialized tokens

Social tokens rely on individuals and the communities they lead to give them value. The value of tokens like WHALE is supported by its NFT library. The VALUE of THE NFT in WHALE's NFT library, which includes a series of NFT collectibles, has risen to more than $1.4 million in recent bullish NFT market sentiment.

WHALE tokens are issued by WhaleShark, an NFT collector. WHALE tokens can be used to buy NFT in the market and gain exclusive rights to participate in rewarding groups.

But even if the NFTS have plenty of room to rise, they are now valued at $40m-plus on assets of $1.4m and $100m in diluted value. For this, WHALE also needs to expand its possibilities at all levels to support the fundamentals of its value.

At present, WHALE'S NFT library does not have direct connection with WHALE tokens, but later it plans to establish a direct connection between NFT and WHALE tokens through the form of DAO governance. The NFT in the NFT library can be lent and rented for a fee, or partnered with digital artists to produce digital art collections that can only be bought with WHALE tokens. WHALE seeks to expand its value capture capabilities through its own NFT and collaborative programs.

In addition, in order to channel liquidity, WHALE offers incentives for WHALE tokens for users who provide liquidity to WHALE/ETH on Uniswap.

From the perspective of WHALE's social token model, it is essentially an NFT investment fund initiated by individuals and participated by the community. With the advent of late DAO governance, WHALE can also capture value in other ways, such as through collaboration, especially as the NFT space has grown. It can leverage the power of the community to capture more value in the NFT domain as well as in the DeFi domain.

Look at COIN, also a social token, with a market capitalization of about $1.7 million, posted by Marguerite deCourcelle, who was the CEO of the Blockade game, and COIN token was her personal issue. Users want to join Coin "s & NBSP; E-den Associates, a Blockades signature game called the Neon District, which owns private Dicord chat rights, must hold a certain number of COIN tokens. COIN will also launch a mobile mining program, which allows users to earn more COIN and CRED (COIN Artist NFT's exclusive and privileged tokens). Coin Artist ecosystem will introduce NFT Mining, Neon District game character mining, etc. In addition, Neon District users will be able to poach unique NFT by pledging COIN tokens.

From the perspective of COIN's mode, it integrates social tokens, NFT, mining and other elements, and USES the current main games of cryptographic world one by one. The development of its value is closely related to the development of game NFT.

KERMAN was also one of the early personal social tokens. It's Kerman Kohli's social token. Kerman is an engineer and product expert who also studies encryption economics. KERMAN tokens can be used to get his retweets, advice and a year's worth of weekly personal news. This mode relies more on the ability of individuals to support the value of their tokens, whose value comes from the degree of demand for services.

The possibility of socialized tokens

So far, social tokens have had initial success. WHALE, CHERRY and COIN all have market capitalisations. More and more individuals will participate in the social tokens, especially those supported by the actual asset value or the actual service demand will be welcomed.

At present, if it is just personal tokens, it may not be easy to get investors' favor based on personal time or work, because it is difficult to determine its value support. That may change, however, as NFT and DeFi develop further.

At present, social tokens with better development, such as WHALE, CHERRY and COIN, are combined with NFT and DeFi, which makes social tokens have the underlying value support. If WHALE's NFT library becomes more and more valuable, then that means WHALE will become more and more valuable, and vice versa. COIN tokens can generate value associations with NFT in games. This is also a very new practice, but at least it has the potential to be worth supporting.

According to this development trend, some game KOls can also issue their own social tokens, which can support the value of their social tokens by NFT in their games. There are also investment masters who issue and issue social tokens for their portfolios, and then their portfolios will also be governed and controlled through DAO; Digital artists and athletes can also issue social tokens. For example, there are some popular digital artists who can create a large number of digital art NFTS, their social tokens can be supported by the value of these NFTS, and only their social tokens can be used to buy their NFT collections, etc.

However, whether it is investors or artists, issuing social tokens is somewhat difficult to grow into tokens with a huge market value, given the limited expansion of their value-capturing ability. A project such as WHALE, with a valuation of $40m, is not easily diluted to a market capitalisation of $100m.

For social tokens to become hundreds of millions or billions of dollars in market value, the ability to capture the value of tokens needs to be expanded, for example through the development of DeFi and NFT. This can be seen in the way WAHLE and COIN play social tokens with NFT and DeFi. Of course, if the regulations are met and celebrities can post social tokens, then more than $1 billion worth of tokens could be created.

As a new area of cryptography, social tokens are likely to evolve and break through, in the course of which it will be deeply integrated with NFT and DeFi, giving it real value.

As more individuals issue social tokens, it's likely to become an encryption phenomenon in the future.