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January 31, 2018, 05:02:15 AM |
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Something I've been thinking about ...
It seems that there is an abundance of utility tokens with minimal utility. Their price rises due to speculative investment, sure. But they're created in a way in which once the speculative investment is gone, there's no reason for much demand.
This is to say, a utility token should be a token that is either required by a platform/ecosystem in order for it to function, or that has some specific, well-defined benefit to those who use it (read: BNB). And along with this, a well defined (and not infinite) supply. Yet, many teams/projects, in chasing those sweet, sweet, ICO profits, don't plan out their utility tokens all that well. And many tokens don't seem to meet many of the standards one would hope for in a utility token that would have a chance at growing, and maintaining value long term.
With many investors also chasing aforementioned profits, it seems a lot of folks don't do adequate research to realize that the supposed "utility token" they're buying has no value outside of the speculation that it will one day have value ... value that it will never have.
Am I wrong? Am I missing something? I keep wondering if I'm just a fucking moron who can't see some obvious thing that gives so many tokens this long-term value so many crave. But it feels like a lot of these utility-less utility tokens are going to lose a lot of people money if/when the speculative bubble pops, and the useless tokens are driven out.
Thoughts? Am I off base here?
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