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Social Tokens: The Next Big Thing In The Crypto Space

Social tokens are the newest trend in cryptocurrency. They are fully fungible tokens that allow investment in content creators and communities. Tokens are not tied to any social platform, making them incredibly versatile and wide-reaching. They allow content creators to earn revenue outside traditional platforms like YouTube, Instagram, and TikTok.

Social tokens crypto can be overwhelming and confusing at first, but they don’t have to be. This guide compiles the most important information about social tokens. It describes what they are, how they work, and how the process of investing in social tokens develops.

What Are Social Tokens Crypto

Social tokens are secured and decentralized using the same Blockchain database technology that other cryptocurrencies like Bitcoin and Ethereum use. Their entire purpose is to provide content creators complete control over their creations across multiple platforms. This is just the beginning of Web 3.0, which like cryptocurrency, uses decentralized blockchain technology to provide full control of one’s property.

There are two different social tokens: Creator and Community. Depending on what one wants to invest in will determine the type of social token purchased. The investor might prefere a single content creator or a community-led one hundred percent by its members.

Content Creator Tokens

Content creators use social tokens crypto as a digital currency for their brand. The most significant difference between this token and another cryptocurrency is that one would invest in the content creator’s economy. This economy comprises their assets, experiences, and content accessible only by their tokens.

If an influencer wants to charge people to access additional content, they can use social activity tokens to achieve their goal. A follower would purchase their social token and use it to access portions of the creator’s work. Social tokens take memberships to the next level because the holder has a tangible asset. If they want to trade or sell this token with another person, they can do so.

The value of a content creator’s token is determined by the value of content given to a token holder. The amount, type, and quality of content from the content creator are significant. Content isn’t necessarily limited to tangible things like songs but includes experiences like meetups and question and answer sessions.

Creator Token Example

The band Portugal The Man was the first band to create social crypto tokens for their fans. They created their social token called PTM Coin, which provides their fans access to audio archives, merchandise, and hangouts with the band for ten coins. Each $PTM token currently costs fans $7.023.

Creator tokens are not just limited to musicians. Streamers, influencers, writers, actors and actresses, and the average everyday person can create their social token.  

Community Tokens

Community tokens are used to gain access to a specific community rather than a specific content creator. Tokens act not only as membership into that community but also as rewards for the behavior and contributions of its members. The goal is to create communities. These tokens also serve as currency exclusive to its community for many purposes.

Community Token Example

An example of a social token community is the Ethereum Investment Community subreddit. This subreddit is a community-driven sub that talks about all things Ethereum. Community members receive a social token called a Donut token based on their contributions to the subreddit. The community can use these tokens to gain additional vote weight in community polls, reward other members, get memberships, and purchase advertising banners. You can find more information on Donut tokens at the Donut Dashboard website.

How Social Tokens Differ from NFTs

Non-fungible tokens (NFTs) differ from social crypto tokens because they represent ownership of one unique asset. These assets can be virtual buildings, pieces of art, or recordings. No two NFTs are the same, so you cannot exchange them. Social tokens are fungible because each token holds the same value. This means you can trade tokens on a secondary market, tokens lose value, and tokens gain value like other cryptocurrencies.

How To Invest in Social Tokens

The value of social crypto tokens comes from the total value of a content creator’s personal economy or the value one gets from being a member of a specific community. There is a limited supply of social tokens like other cryptocurrencies, so the value also comes from its demands. It’s best to invest in a content creator or community when it is first launched as the value grows with its popularity. Social tokens are something that one should plan on investing in the long term.

There are a few leading platforms where creators host their social tokens. Rally is one of the most popular platforms as the tokens created are not bound to any one platform. There are no fees associated with creating a token compared to other platforms that take a percentage of their income. This means that a creator can focus on building their brand, personal economies, and communities.

To get started, it’s necessary to create a Rally account. Once the investor has created an account, they can browse a listing of tokens. After finding the token they would like to invest in, all they must do is click the buy button on a creator’s page. It’s possible to purchase social tokens using credit and debit cards and all major cryptocurrencies. One can invest in as many creators or communities one wants. Rally offers a portfolio so the investor can easily manage all their investments.

Conclusion

Social tokens are the newest trend in the cryptocurrency world. They allow content and community creators to sell a tangible item that provides their followers with content. By investing in a content creator or becoming a member of a community, the investor will not only gain access to content but have a fully tradable token. Like other cryptocurrencies, they are entirely tangible, so they make great additions to a portfolio. 

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