Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!
Have a great day,
CRYPKYP Team
The creator of TaschaLabs, Tascha, recently reminded the community of the potential of utility tokens, stating that they might arise during a weak market and accelerate crypto adoption.
She stated: "Real businesses are only waking up to the power of tokenization. Death of speculation in bear mkt gives breathing room for real innovations in tokenization to happen. Companies w/ viable products that manage to integrate utility tokens into existing biz model *early* will be handsomely rewarded, while driving crypto adoption forward."
She distinguished utility tokens with accurate usage from those that granted their holders a portion of the company's earnings, stating that the true power rests with utility tokens with precise utilization.
The first method would be to allow for the redemption of loyalty points.
In conventional businesses, loyalty points are accumulated individually and reserved for that individual’s use solely. Frequently, users cannot sell or transfer them to another location. Tokenizing a loyalty program would allow customers to exchange loyalty points on a secondary market.
The opportunity to redeem loyalty points would encourage users to accumulate them. It would make loyalty points more appealing, leading to an increase in new users and increased traffic from existing ones.
In the traditional market, only businesses with substantial equity may reserve millions for sign-up incentives. Tokenizing the sign-up incentives would enable businesses to implement this effective marketing strategy without exceeding their budgets.
This strategy would also allow the corporation to alter redemption rates based on the performance of its tokens. Moreover, if the tokenization of sign-up incentives is combined with the liquidation of loyalty points, the corporation may provide a greater incentive to join and utilize.
The firm automatically develops its shareholder base by permitting the liquidation of loyalty and sign-up tokens. The circulation of tokens on secondary marketplaces would promote user engagement, which would attract investors.
Tascha enumerated a few crucial factors for determining whether or not firms may profit from adopting utility tokens.
The firm in issue must have a successful product above all else. Launching tokens for a new product before determining its viability may destroy the system in the event of an eventual bear market.
Tascha notes: “Reflexivity of token price & opportunistic “users” will give you wrong signal abt product viability. When tide goes out (it will), you find yourself swimming naked.”
Also, given the tokens are issued at the expense of the company’s future income, a corporation with a dropping marginal cost would be an ideal candidate for launching a utility token system, mainly if they are operating in a market with winner-take-all potential.
