The Next Massive Crypto Trend to get ready for are Social Tokens.
Cryptocurrency isn’t going anywhere soon with the next biggest craze after NFTs being social tokens.
Social tokens, considered the next big thing in the cryptocurrency universe, are at the crossroads of many emerging trends, including decentralised autonomous organisations (DAOs) and non-fungible tokens (NFTs)
What are social Tokens?
Social tokens are type of cryptocurrencies used to monetize a brand.
So what are social tokens? These are a type of cryptocurrency that is based around a brand, community, or influencer. Basically, it’s a way for internet groups or celebrities to further monetize themselves beyond the typical means.
Exactly what social tokens do depends on one.
Social Tokens are backed by the reputation of an individual, brand, or community issuing them.
Types of Social Tokens
Social tokens are basically of two types.
- Personal or Creator tokens
- Community tokens
Personal or Creator tokens
Personal/creator tokens are created by individuals to exchange forms of labour. These individuals are usually public personalities like entrepreneurs, artists or musician.
Community tokens are created as a means to gain access to a community. These are similar to membership cards but based on the blockchain.
How do social tokens work?
Social tokens are simply crypto tokens created and issued by individual or communities. The main purpose of each social tokens varies depending on who and why it was created.
An entrepreneur, artist or social media can create a group of followers.
Here lies the opportunity for such entrepreneur, artist or social media influencer to launch their own social token where relevant content can be shared with their followers.
Any of them can use their social tokens as a mechanism by offering premium access to content only for their largest token holders.
It's is advisable to buy the token issue by either one of these people early on if we have faith that it will gain more followers in the coming years.
Each new token that the artist issues will typically be at a higher value than the previous one. The value of your token rises as the community grows and more tokens are issued.
Benefits of social tokens
Social tokens have better incentives than just conventional ‘reward points’. It serves as benefit to both individual and businesses
Some of the benefits are:
- Attractive Capital Investment Route.
- Tokenize Assets for Easier Sale.
- Secure Exclusivity.
- Reward Loyalty.
- It also makes it impossible for fraudulent transactions when it comes to token ownership because they are built over blockchain.
- It allows content creators to engage with their fans more than before e.t.c.
What makes social tokens valuable?
Social tokens have value because it overlap with other classes of crypto tokens, such as “utility” or “governance” tokens.
Social tokens also have massive potential to redefine the way companies can generate targeted business opportunities. By building a decentralised and secure ecosystem that caters to only their genuine customers or fans, it will ultimately result in long-term growth prospects that directly influence the value of their respective token.
And also the social tokens to invest to buy in 2022.
The most popular social tokens
They're Many social tokens in the cryptocurrencies. However, the two social tokens that are shining brighter than the rest, with a combined market capitalization of $240 million are Whale and Rally.
Whale is currently the most valuable social token by marketcap at $136mm
+ $RALLY is a close second
+ $MORK a distant third
According to CoinGecko, the two tokens represent 83% of the entire social token sector’s capitalization.
Social Tokens have a lot of potential to them.
There are currently 10 million of the tokens in circulation with a fully diluted valuation of $330 million, if we take Whale as an example.
WHALE is a social token backed by rare and valuable NFT assets, which are held in “The Vault”, a publicly audited collection on the OpenSea NFT marketplace.
Rally.io is a leading Ethereum-based platform for creators to launch their own social tokens, which lets social media personalities, bands, esports teams, and more engage with and monetize their respective communities.
To conclude social tokens are a product of web3.0 and they are decentralized as well as secured just like cryptocurrencies. Also, it can be utilized by creators to monetize their content and enlarge their community.
Social tokens provide creators with a valuable way to reach their market like never before. And might possibly change the marketing forever.