Blockchain technology does not require the use of cryptocurrencies to function. It is entirely possible to use it without tokens. The tokenization of value is just one of its possible applications. Given this, it begs several questions about how the currency cryptospace operates. Why do projects create a unique token for what they propose to do? Why don’t startups develop platforms that accept existing cryptocurrencies, such as Bitcoin, NEO, ETH, Ripple, etc.? When contributors to ICOs but tokens what kind of value do they hold? To answer these questions, I’m going to first discuss some basics of blockchain technology. Then I will delve a bit deeper into its application in the real estate sector."
Basically, the tokens are there to represent the value or "shares" the investors hold in the project. These tokens may have use or not in the future project but then when they are raising funds for the project, the investors need to have something in exchange for their investment and these tokens are the exchange to it or what it represents. This may become valuable or not in the future depending on the outcome or demand that's why it is quite risky to invest in ICOs.
Why don’t startups develop platforms that accept existing cryptocurrencies, such as Bitcoin, NEO, ETH, Ripple, etc.? When contributors to ICOs but tokens what kind of value do they hold? To answer these questions, I’m going to first discuss some basics of blockchain technology. Then I will delve a bit deeper into its application in the real estate sector."
They have the option to just make a platform that accept those cryptocurrencies that are already listed and has some value but then the investors would not have anything that they hold to confirm that they are one of those who own tokens that's why a token is issued. In addition, some of these projects can only be accessed when someone uses their tokens so that it will have value and the project has a choice of issuing additional tokens if they need more funds.
