Ever heard of Social Tokens?
Everyone has in one way heard about Bitcoin and the long list of cryptocurrencies in existence. And you have heard of the Non-fungible tokens commonly known as NFTs. But how many have heard of Social Tokens? Follow us as we explore this fresh technology that is been growing but in disguise.
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Social tokens exist on the presumption that the community is going to be better tomorrow than it is today. Sounds good? So what exactly are these Tokens that are aiming at the betterment of the community rather than making people rich or easing transaction?
Social tokens are digital assets that are backed by the reputation of a brand, individual or community. They are another form of monetization for internet groups or celebrities. These non-fungible tokens are also called personal coins, community coins or creator coins. They are decentralised and secured by blockchain. Creators can monetize their work in form of NFTs or Social tokens and people give in support and show loyalty.
These tokens are for the benefit of the creators. They give fans a chance to appreciate their favourite creators and celebrities growth and owning a symbolic part of the content. Social tokens have given artists; writers, musicians and other leaders or socialites a chance to fully enjoy the benefits of their products. Traditional methods like YouTube have been taking a percentage of their income.
Several social tokens have been created and have good value. For example, Whale has over 10 million tokens in circulation which are valued at $330 million. Bitclout is a little different because it has set aside tokens for the most popular users on Twitter (NYSE: TWTR). Bitclout lets users invest in the social clout of the rich and famous by buying their unique crypto tokens.
Two famous Social Tokens
Status was founded in 2014 by Jarrad Hope and Carl Bennet. The first mobile and desktop operating built on the Ethereum blockchain was a self-funded project by the founders except for a grant from the Ethereum foundation. It has a decentralised browser and private messenger. It gives users access to the Ethereum network in a tap. Users of Status also have an access to all Ethereum DApps.
Status sells at not less than $0.2 with daily trading volumes of more than $70 million. Status has a market capitalisation of $729.61 million.
Steem uses the slogan powering communities and opportunities. It started in 2014 by Dan Larimer who is the CEO of Bitshares. Steem the native coin for Steemit a blockchain-based social media platform that is decentralised, free from data vulnerability, censorship and a central authority to control it.
Steem allows users to create and publish content and get rewarded for it. It rewards its users with cryptocurrency making it better than the traditional social media platforms. So why post on these other platforms that restrict what you post and still earn from ad revenue and you can post on a decentralised platform and earn?
Steem unlike Status lives on its own blockchain. Other coins have also been built on the blockchain such as Steem Dollars (SBD). Steem Dollar is used to process 50% of the payments to curators and creators on Steemit. This helps to reduce the fluctuation of the Steem cryptocurrency.
Steem Power (SP) is the coin for power as it called. The more Steem power you own, the more power you have on the Steemit platform. For example, if a user has 100SP and another user 30SP, it means the vote of the user with 100SP will be stronger than that of the user with 30Sp.
Steem has capped over $500m+ in its market. Statistics say it makes a 100% yearly increase since it started.
Common Uses of Social Tokens
Social Tokens are used in different ways to connect content creators and their audience. Here are the most common uses:
- Content Monetization: Content creators can use Social Tokens to monetize their content by providing exclusive benefits to token holders, such as exclusive content, live dating, or giveaways.
- Audience Engagement: Influencers can use Social Tokens to increase engagement with their audience by providing exclusive benefits to token holders, such as polls, voting, or live chat.
- Community Building: Artists can use Social Tokens to build a community around their work by providing exclusive benefits to token holders, such as preview updates on their work in progress, live dating or collaboration opportunities.
- Crowdfunding: Startups can use Social Tokens to raise funds from their community in exchange for future benefits, such as discounts on their products or exclusive updates on their development.
Advantages and disadvantages of Social Tokens
- Alternative Monetization: Social Tokens provide an alternative to traditional content creator monetization, such as online ads or subscriptions, by allowing creators to price their content and reward their audience directly.
- Increased engagement: Social Tokens allow influencers and content creators to increase their engagement with their audience by providing exclusive benefits to token holders.
- Possibility of collaboration: Social Tokens can also allow content creators to collaborate with their audience to co-create content and jointly determine the future directions of their work.
- Transparency and security: Social Tokens are often based on a public blockchain, which guarantees transparency and security of transactions and information.
- Technical complexity: Social Tokens are a complex technology that can be difficult to understand for uninitiated users.
- Low Adoption: Social Token technology is still very new and little used, which can make it difficult to find platforms or partners to trade and use the tokens.
- Investment Risks: As with all investments, Social Tokens come with financial risks and it is important to do your own research and understand the risks before investing.
Other Social Tokens
Many social coins are doing well and have billions of dollars in market capitalisation. Rapids (RPD) is doing well with a market cap of $3.9 billion. These tokens are slowly changing how artists interact with fans and their content.
Social tokens may be the next avenue content creators will be using to sell their content rather than posting on the traditional platforms.
Future Prospects of Social Tokens
Social Tokens are an ever-evolving technology and it is difficult to predict exactly how they will evolve in the future. However, it is likely that Social Tokens will continue to be used to monetize online content and increase content creators’ engagement with their audience.
It is also possible that Social Tokens will become an alternative means of financing for startups and small businesses. Allowing their community to participate directly in their funding in exchange for future benefits.
Now that you know, do you think these tokens will take over the cryptocurrency world?
You will surely like our other articles on key cryptocurrency information, for example: “discovering the Defi“, “understanding what a whale is“, “exploring Mining“, and looking into what a ” Fiscal paradise“
This article is not investment advice. Do your own research before investing in the cryptocurrency market.