Is utility token trading actually dead?

[artbart]

If you agree that utility tokens were built to attract funding via ICO boom and all of the "utility" things were mostly speculated around to do the ICO, then maybe you will agree with the rest: 99% of utility tokens' value will not be affected by the project itself (unless it simply dies), the value will only be affected by the traders' speculations.

Let me elaborate:

I know a project that does great with their development and business implementation (user DB grows in 100s of %), but the token price bleeds. Good project news have close to zero impact to the token price. And this, tmm, will continue to be so until their project and the infrastructure around it will go so huge, that the utility-demand will become enormous and this way grows the demand for the token (thus inflates the price).

Until the real demand is huge, the project itself basically has zero impact to the price leaving it to bleed further in the hands of traders (speculators that most of the time give zero f*** about the project itself by not even using it).

Tmm, BNB is the only token that makes good utility-demand thanks to their good business and action plan (it currently holds a value of 20usd vs most tokens fail to even be worth 0.01 usd). XRP may get there, but is still in the hands of speculators more, than in the hands of the infrasture's demand (bank payments).


Do you agree? What are your thoughts on that?

[mk4]

Pretty much all existing coins/tokens right now are priced based on hype, and far less for it's actual utility. Hence why a lot of people are taking advantage of these hype cycles to either trade for dollar profits, or BTC profits. I mean, take a look at XRP. It's still in the #3 spot for some reason. It's just because they have a huge amounts of followers(and probably mostly bots) on different communities, but mostly on Reddit and Twitter. I thought XRP would be dead last year but for some unknown and mind-boggling reason they still have holders. Definitely a lot of speculators in the cryptocurrency space that doesn't do even a tiny bit of research.

[fullhdpixel]

I have also come across many projects that have a very large user database, but the price has really not been encouraging and one of which you mentioned, ripple. With all the large user base that they have, there price has still not increased, and it shows that people are not demanding for it and I am asking what those users are really doing there, and if they are just redundant, of which I think most of their users are just more of holders of the coin and not using it as it should be used.

Binance bnb is also meant to be a utility token, but I see that only developers are using it also in their trading platform, but they are still lucky to have a platform that they can impose on people. I think the reason why utility tokens are not surviving is just because many people are here for the money, the one they will get through investment.

[dunfida]

Pretty much all existing coins/tokens right now are priced based on hype, and far less for it's actual utility. Hence why a lot of people are taking advantage of these hype cycles to either trade for dollar profits, or BTC profits. I mean, take a look at XRP. It's still in the #3 spot for some reason. It's just because they have a huge amounts of followers(and probably mostly bots) on different communities, but mostly on Reddit and Twitter. I thought XRP would be dead last year but for some unknown and mind-boggling reason they still have holders. Definitely a lot of speculators in the cryptocurrency space that doesn't do even a tiny bit of research.

All hype indeed.I cant even see a reason specially on most top altcoins in the market to be useful but they do somehow hold up their current top positions.
Most investors might be knowledgeable or wise enough but we cant really avoid those people who are dumb enough to believe on whats into their minds without
even reconsidering on what they are dealing with.

When it comes to usage or utility only a few i can see which do work as it is but majority of them are just completely trash but surprisingly they are still standing
and gaining some support. Do these holders are blind? 

[Upgrade00]

Utility token should have a use case, and should be relevant in the functioning of the platform on which the project is built, this is the only way to ensure profits/revenue accrued in the business would be reflected in the price of the tokens.
But there are lots of nuances to the value of a cryptocurrency, and as stated above, speculation does play a huge role.

[CryptopreneurBrainboss]

Tmm, BNB is the only token that makes good utility-demand thanks to their good business and action plan (it currently holds a value of 20usd vs most tokens fail to even be worth 0.01 usd).

Sorry, what good business action plan are you referring to, is it the one that has to do with them forcing any potentially investors wanting to invest in an IEO through their exchange to buy and hold their token before the IEO date thereby pumping the price of their token. Is that what you refer to as a good business plan?. What they're simply doing isn't different from what most Altcoins did in 2017 and now suffering the consequences. What's wrong if they allow investors to buy their token on the day of the IEO and still be eligible to participate in the crowd funding event.

Thought their token was trading around $31 +/- few weeks ago guess the hype is now dieing down as the IEO aren't coming in their numbers anymore. The Binance token is just been overhyped and now overpriced as its utility purpose doesn't correspond with price value meaning the chances of price decline will always be high except the hype stay forever (wish is impossible) so it's just a matter of time before it get back to 1 digit price value.

[MonsterV]

Utility token should have a use case, and should be relevant in the functioning of the platform on which the project is built, this is the only way to ensure profits/revenue accrued in the business would be reflected in the price of the tokens.
But there are lots of nuances to the value of a cryptocurrency, and as stated above, speculation does play a huge role.

I think that utility token must have a use case, it doesn't exist anymore, because most projects don't care about their tokens and rarely do I see a project where developers are serious about developing tokens they make. Most project developers only make a token as a vehicle, after reaching their destination they leave. So see these token are controlled by hype and speculators, just look at lots coins in cmc and pay attention to those coins, they are all influenced by hype, fomo, speculation.

[maydna]

Utility token should have a use case, and should be relevant in the functioning of the platform on which the project is built, this is the only way to ensure profits/revenue accrued in the business would be reflected in the price of the tokens.
But there are lots of nuances to the value of a cryptocurrency, and as stated above, speculation does play a huge role.

I believed that the utility token which I used to hold so long is developing its momentum right now and will rise sooner of its value. Although it seems harder to see good price nowadays, but it doesn't threaten me to be panic. Instead of having bad days I am enjoying and hoping alcoins seasons to come after real bull run happens.

That's good at least you still hold the token. I hope you can hold it longer because we don't know when the market can fully recover so your token can increase back to the normal price. We need to enjoy the ride of the market, and we don't have to feel bad about waiting for the recovery.

But I guess that many projects now don't care about the utility case for now, and I think they are busy to make their project still running and recover their losses. But when the right time comes, then we will see which project will increase later.

[Rustamm]

Of course, the price of most official tokens is initially kept at a high level thanks to the support of speculators and traders. I just see a lot of projects with an existing business and a finished product, but the price of their token continues to gradually fall. This situation is observed in almost all projects and it takes more time for the demand for project services to grow and only after that the price of the token will begin to grow along with the growth in demand.

[GreatArkansas]

If their project is useless or they didn't accomplished their roadmap even at the beginning it is totally dead.
A very lot of people fall into it, the ICO fever on 2017-2018. Almost 90% lost.
I don't think so if a utility token is useful, it won't be dead. Most of utility token are totally shit. I hope people will learn their lessons.

[hugeblack]

It depends on the extent of support for that platform, for example, Binance platform contains thousands of dealers and a lot of people but they are not investment tools.

BNB makes it easy for you to trade on the platform because it gives a discount and the value of that token may go up/down & give you a real opportunity to reduce fees.

Generally, the distant future of these tokens does not mean that they will rise for thousands of dollars so if you think of them as an investment or trading, you are wrong.

[Hypnosis00]

Utility token should have a use case, and should be relevant in the functioning of the platform on which the project is built, this is the only way to ensure profits/revenue accrued in the business would be reflected in the price of the tokens.
But there are lots of nuances to the value of a cryptocurrency, and as stated above, speculation does play a huge role.

I believed that the utility token which I used to hold so long is developing its momentum right now and will rise sooner of its value. Although it seems harder to see good price nowadays, but it doesn't threaten me to be panic. Instead of having bad days I am enjoying and hoping alcoins seasons to come after real bull run happens.

Everyone is hoping to see utility tokens to be finally out in the market. I'm currently holding some but I don't how long we should keep it and make used.
I'm not particularly giving concern with the price but the most important to see it alive. The market price will soon to rise if many people will use this as it will increase the market demand.

[BitcoinHunt3r]

Maybe about BNB, at least they already have product that is why people see it as good utility token. I mean, maybe some projects need to have real product first and make ICO to raise money so they can spread and can make their project can be better. Maybe if a lot of project did that thing, investor's truth will be back because it is proven if speculate in project that not have product yet is bad idea.

[Bisbee]

Nevertheless, while the demand for the services of such projects has not grown, you can continue to trade in such tokens. I can’t say that I have always successfully traded office tokens, but more often it turns out to make a profit. Traders at an early stage help to increase trading volumes and liquidity, but the team of any project must maintain the price of its token and this should be laid down in the project strategy.

[Periodik]

If by buying a utility token you are thinking of getting a profit someday, you are actually wrong. Utility tokens are designed for people to be able to use the particular services or products of a certain project. The truth is that utility tokens are not sold as investments; they are sold primarily, of course, to fund the project's development, and secondly, for investors to have access to whatever the project is offering.

[Reid]

BNB is successful because it was built inside an exchange and also used for it.
They offered so much that traders really saw it very inviting to buy and be used as a transaction fee.
It was the Binance exchange which made the hype. The BNB project might have been already in the make up while it is happening.
But they still need the exchange to boom before the coin will.

Now, there is still a possibility for a new token to rise. That is, if it could give some good features rather than the old ones around.

[Ucy]

Bnb business style is actually ok. They have been able to get alot of people to use the coin.. . I guess their expansion model is actually helping them a great deal too. Or they're probably doing well so quickly due to political connection?
In my opinion, real token need to grow organically in Blockchain-friendly manner for the sake of sustainability. Decentralized growth should be encouraged more. What happens if the law forces the exchange owner to act in certain ways that are incompatible with crypto ideals like decentralization. If he doesn't comply, he could be forced to close shop.

[artbart]

Sorry, what good business action plan are you referring to, is it the one that has to do with them forcing any potentially investors wanting to invest in an IEO through their exchange to buy and hold their token before the IEO date thereby pumping the price of their token. Is that what you refer to as a good business plan?. What they're simply doing isn't different from what most Altcoins did in 2017 and now suffering the consequences. What's wrong if they allow investors to buy their token on the day of the IEO and still be eligible to participate in the crowd funding event.

Thought their token was trading around $31 +/- few weeks ago guess the hype is now dieing down as the IEO aren't coming in their numbers anymore. The Binance token is just been overhyped and now overpriced as its utility purpose doesn't correspond with price value meaning the chances of price decline will always be high except the hype stay forever (wish is impossible) so it's just a matter of time before it get back to 1 digit price value.

Whatever they do, they keep the demand high enough for the token to be worth something (ieo, fees reduction, burning tokens). And the big picture, tmm, is that they own a lot of BNB tokens themselves that value is directly based on the market value. And I believe they are ready to do whatever it takes to keep the value at a certain point as long as it is mathematically worth it.

[Dart18]

Binance is still being hyped by now. Even with all those mistakes that they have made and a lot of negative feedbacks they are still in the number 1 spot. You could call this already a hype.
Just talking about it increases its dominance again.

Utility tokens. Yes, I think there is not much usage for them now. BNB though makes it cheaper to trade in Binance so I would also pick to use it rather than being charged with Bitcoin or other coins.

[artbart]

Everyone can have their perceptions for their own or third-party experiences, but there are platforms such as Mintme, a crowdfunding and crypto exchange platform, that work hard on developments that based on the creation of tokens as a valuable representation of their projects, and that allows creating their own value in a fair way, and without intermediaries.
Mintme is a platform platform where creators and investors find the ideal environment to let others know about their projects and create a chain of mutual support, since gives you the opportunity to create and trade your own tokens backed up in your projects and earn through it like you would do it through a crowdfunding campaign  (this time based on blockchain technology) at the same time that it provides you with the possibility of trading with them meaning that those who give support by buying can also earn with the creator’s tokens. Inside mintMe, you can be either the token creator or a token holder.
To the question, is utility token trading actually dead? My answer is no and we will continue working to keep it that way.

well, your post is very promotional (aka spam) for Mintme. But are you able to ground on how your project will actually be affecting token's price? The real price is either a derivative of demand or in the crypto world - pure speculation. How is our token any different and dare I say better than Binance's BNB?