The value of these crypto tokens came, not so much for their use in the exchange of goods and services, but rather the use of the underlying service that required these tokens to operate.
The flexibility with which contracts could be programmed on ethereum gave rise to many projects listing their own application-specific crypto tokens on the platform.
Like Waves, were built specifically to help new projects issue and manage these crypto tokens.
'Initial coin offerings', or ICOs, are a form of crowdfunding and bootstrapping for crypto projects, where the founding team receives funding to develop the project from backers, in exchange rewarding those backers with crypto tokens.
Many of these crypto tokens work in a crypto ecosystem that is powered by the token.
There are usually two steps involved with valuing a crypto token: modeling the market size and the extent that the project can reach, plus how the market reach translates to returns on individual crypto tokens.
An important factor to realize when valuing crypto tokens is that they naturally present higher risk than even regular startups.
Due to the very short history of such crypto tokens and crypto-economic systems, there are several challenges that investors face when trying to value these projects.
First, the short history of crypto tokens has generally shown an even shorter lifespan of many of the projects.
In due time, crypto tokens will likely be sold to the public in several stages, depending on different milestones being hit by the project.
A Framework for Valuing Crypto Tokens
Veröffentlicht auf Mar 3, 2017
by Coindesk | Veröffentlicht auf Coinage
Coinage
Erwähnt in diesem Artikel
Neueste Nachrichten
Alle ansehen
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.