How is tokenization affecting the over all price level of cryptocurrency?

[Zadicar]

The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.

The more token emergence would really affect price yet it would really divide the number of current investors on the entire market and also
most tokens overall are complete trash which would result on losing out confidence on potential investors as well which in result wont really able
to maximize out the potential support to the better ones.

[Fabguy]

By the way of dividing the total investment into different assets. Crypto market is attracting billions of dollars every year but the presence of thousands of tokens in the market is actually doing more harm than good. Majority of the tokens have no value as majority of them are either scam or have no long term business goal. We are seeing hundreds of ICO popping up every month, but how many of them are actually succeeding? Almost no one! So all the investments made into those ICOs are going down into drain! If these investments were flowing into few major cryptos like bitcoin and ETH, that would have increased the demand as well as the price.

Tokenization is a good feature but this is being misused heavily! Result?? ICO market is loosing credibility as well as decreasing the credibility of the crypto market. So the loss is not only financial, you see!

So what you are saying in essence is that lack of value from these projects render their tokens useless? I just want to understand your point more.

[Sebas.tian]

With many tokens emerging in this space, it is inevitable that they would take a part of the overall cryptocurrency market cap. With this, bitcoin's market dominance will slowly decrease as more tokens and coins emerge. Some people might take this decrease as a sign negatively and make the price also decrease in turn.

[zhekinsp]

The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.

The effect of those useless tokens were making the investors poor and the project team to be rich.

Not all the tokens running on an existing blockchain was shit but most of them were just copy of other coin and some projects even copy the whitepaper as well so investors need to be more smarter if they want to make profits.

[rizkyhiw]

The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.

Making tokens is indeed very booming in this market which can be divided into several places that can only make prices go down or difficult to rise with fast time because in every day the circulation of investment is very large but can not make prices go up, but return investors want the desired assets , but for a long time there will be tokens set aside because the appearance of a new token or switching to a coin that has a clearer advantage than others, it is already not good because the appearance on the market is not properly controlled.

[carter34]

The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.

In so many ways other than one. In economics, the more you have plenty of product in the market, whether same product or optional product, the more the price collapses because value won't be placed on them. Again, some optional products are used as competition to the superior product or commodity.

This is a keen to what is happening in crypto. Bitcoin is known to be the most valued crypto but we now have many other thousand crypto that are in competition, some will never get into the top hundred coin but they are crypto. So, inferiority collapse a value product.

[CHENIEN]

Tokenization is a part of cryptocurrency, maybe it affects the price level of cryptocurrency defends on the volume of transactions. When the volume of transactions are high therefore it affects cryptocurrency price. Because cryptocurrency price is only base on the demand and supply. The more people demand on bitcoin the price also become higher..

[Ucy]

Should creating tokens be made difficult then? This is why they are called tokens in the first place. Developers are creating products on existing platforms. It should be as easy as android developers build apps on Android operating system.. Some Apps could even be created in minutes on top of android but what matters is how useful they are and the effort put into creating them. Same is applicable to tokens.

[el kaka22]

I guess the easiness is not that issue, I think its the capability of making people believe in your project so easily is the issue.

I mean after all you can create a token in half an hour and present it to people and that is not good I agree but I have seen people go "this is a coin on sale and if you fund this I will buy myself a car" and people literally laughed at him and paid him money. That dude got like 200k, way more than a car worth of money (or a lambo), it was a "joke" coin that got like 200k dollars for it.

I understand that the ease of creating a token is bad but people funding stupid stuff like that is way worse problem at hand. We need to make sure there are less coins coming up everyday for sure but we need to make that with funding the good ones and not funding the bad ones, otherwise bad ones will see they will get funded anyway and create one.

[incomefromcoins]

Tokenization will definitely effort the market price especially etherum got effected badly  aspect there are many tokens launching in the market but at the same time some projects are a scam so real projects will survive in the bear market

[awawo]

To me tokenization have affected the price of most crypto due to the fact that if various platforms and companies have they own token it reduce the amount of transactions being carried out in the general ledger, because those investors and customers of those company with personal tokens will no longer use the original platform such as bitcoin and the rest and that will reduce the level of demand for bitcoin.

[South Park]

The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.

Most coins have very low market caps and a quick glance at coinmarketcap will tell you that the top 10 coins have almost all the market share so the diluting effect of those coins is insignificant, the real problem with having so many coins is that people get confused about why we have so many and when they understand that the majority of them are scams this affects the confidence of investors in the market, which is huge because this slowdowns adoption and reduces the level of investment that comes to the market because investors are afraid of being scammed.