thinking about crypto-tokens

First a disclaimer: I am not an expert on crypto-tokens and this post is not intended to offer advice about their relative merits or lack thereof.

I read from Fred Wilson’s blog today that there will be a “token conference” in New York this May. That of course, leads one to ask “so what the hell are tokens?”  H refers to what are generally called “crypto tokens”. They are a digitized form of token that are based on a  platform like bitcoin or etherium.  They are issued by someone either trying to finance or monetize a business.  Fred points out that the long-term upside is about monetizing a business rather than financing it.

What is the big deal? From TC, we find out that there be no big deal — at least not yet.

Many view ICOs and cryptotoken sales as fraudulent schemes for a quick money grab.

The main problem goes to the lack of enforceable mechanisms to control what happens after you buy the tokens. And that is a big issue. Read the TC article if you want more on that.

It is a big issue except if you have some basis to trust what is going on with those getting the funds from issuing the tokens. Which brings me to my point — stripped of all the rhetoric, we are seeing new platforms that build networks around evolving ideas. These are not easily financed by traditional methods. That is the “pull” that makes investing int his field interesting.

So hold on to your hat. You are going to hear more about this.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s