Anatomy of the Tokens Market: Types of Tokens, by Sandris Murins

[ghotzies]

As a tokenization strategist, I will share my insights on the anatomy of the token market as weekly posts. In my third article, I shall provide answers to the following questions:

1) What type of tokens (utility, app-payment, security) are the most widespread and most valuable to the market?
2) How to define ICO based utility tokens?
3) Whether utility tokens sales with high marketing budgets are toxic?
4) How to calculate Soft Cap for an ICO project?

Token Market is Dominated by the Utility Tokens

I have analyzed the white papers of TOP 200 (by market cap on March 10 – 20) tokens listed on coinmarketcap.com and Tokens24. From my research, I can conclude that the most significant group of tokens are the utility tokens. They represent 60% of the top 200 most valuable tokens. These are tokens which provide exclusive access to software utility (or service) by having the token or in exchange of token.

The second biggest group are the app-payment tokens. They represent 35% of the TOP 200 tokens. These are tokens which provide means of payment in a technological ecosystem where more than two parties are involved. The third and final group of tokens are security tokens. These tokens represent 5% of the top 200 tokens. This token provides a return on investment through profit or revenue sharing, it includes voting rights, constitutes a part of equity and may provide buy-back guarantees.

Keep Reading:
https://www.tokens24.com/exclusive/anatomy-of-the-tokens-market-types-of-tokens-by-sandris-murins

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[pickledmuffin]

The token market with ICO's is lucrative. You should have a look at the token sales that are currently underway with Nauticus or BAANX.

Have a look on their websites and at their deals because they're a good investment.

Those two ICOs look interesting. I especially like something I can understand. A lot of ICOs are hard to gauage what they are actually doing with the fund raising.

[omitusaf]

Looking at the softcaps of the ICOs, I think there should be a way funds can be released to the project owners in batches. Since the softcap is the minimum required capital to springboard the project, excess funds should be held in an escrow and released only when there is clear evidence that the project is coming to life. I say this due to many scams that have proliferated the ICO space.