Crypto: How do social tokens get started?

Blockchain technology, thanks to Bitcoin, has made it possible to democratize the disintermediation of exchanges. Several innovations in terms of cryptocurrencies have appeared. Halfway between DeFi and NFTs, Social Tokens or social tokens in French redefine the codes of marketing in the way of interacting with communities.

What exactly is a Social Token?

A Social token is a type of fungible crypto that links a community to a creator, a brand or an organization that issues it. Unlike NFTs, social tokens allow their issuers to monetize and are tradable. Each unit has the same value as another.

Social tokens allow direct interaction, without intermediaries such as Tiktok or Youtube. In this regard, they offer a community participatory approach. In other words, by acquiring a token, members of a community benefit from advantages and experiences defined by its issuer. In addition, this acquisition can be in the form of a reward or an action. For example, an artist can reward his best fans by offering them his cryptocurrencies. Just as a subscription to a newsletter can give rise to an acquisition per share.

Although the market is still embryonic, these cryptocurrencies are being adopted in several areas such as art, sport and entertainment to name a few. Content creators, brands, influencers, artists, groups of all kinds take control of their income and their communication by becoming the sole owners of their creations.

Customizable cryptos

Social tokens are therefore a tool for transferring value to the community. These cryptos are characterized by their diversity and adapt to the nature of each issuer:

  • Community tokens are intended for groups. They are issued, controlled by the group and are similar to membership cards, offering them exclusive services. In addition, the operation is typically that of a CAD, an organized decentralized organization. One of the most famous is the FWB (Friends With Benefits) token, which brings together artists and technophiles in its community.
  • Personal or creator tokens correspond to celebrities, influencers, entrepreneurs as well as creators. Indeed, they are centered on the individual who issues them in exchange for privileges on his work. We can cite Alex Masmej with his token called $ALEX. This crypto-enthusiast chose to sell a percentage of his tokens for a sum of his future earnings. In addition, artist DJ Vivie-ann Bakos offers exclusive access to her music in exchange for her $ISH tokens.
  • Social platform tokens are suitable for platforms that facilitate the issuance and trading of tokens with benefits for acquirers. This is the case of the RALLY platform with its governance token $RLY. It allows creators and brands to monetize themselves through tokens created for this purpose. Then, acquirers must convert them into $RLY when they make outflows from the platform.

Social tokens are an innovation of the Web3 which contrasts with the traditional way of monetizing, generally via a plethora of intermediaries. They have multiple uses such as: raising funds, creating, expanding or engaging your community or facilitating its governance, etc. Real added value within cryptocurrencies, social tokens are presented as a tool of freedom for all those who aspire to access the power of ownership of their creations.

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