Hi everyone, this is Lucky Ali, and I'm delighted to welcome you to my post. There are thousands of tokens, and new tokens are launched daily, but do you know? Only a few survive and hold real value. The token value should not be based on hype only, or you can say speculation only, because I don't think such tokens are really valuable. A token should have multiple elements, such as demand, trust, use case, and plan. When these elements are there any token, then we say that the token has a value.
Token's utility is the most important factor
One of the most important factors is utility. When there is no use case, the token is useless. The best examples are some daps on Hive, such as Splinterlands ' SPS token or Inleo's Leo token. You can see these tokens have real value and use cases, which we can say are tokens with utility. Some coins solve real problems, such as Chainlink's link, which is a blockchain of oracle, and oracles connect the blockchain world to the real world, so this is the most crucial use case. A token with no use case, and dependent on speculation and a pump and dump scheme, is not valuable at all.
supply control and scarcity in token
Gold is limited, which is why it is valuable, proving that limited things are valuable. If a token has less supply and also has a good use case, then surely it gains value in the market, and demand will increase. There is one more way, and that is burning. If the supply is high, but it is mentioned in the roadmap that over time token burning program will take place, then such tokens will be accumulated on a mass level, and we have seen that, but the condition is utility. We have the best example here, and that is bitcoin itself, cause bitcoin's supply is cut in half every 4 years, which is called halving, so such things are really powerful.
strong and loyal community
Community is everything for a project, and we have the best example of Hive and its game, Splinterlands gaming community. Splinterlands has survived multiple bear seasons, and that makes it the oldest ever Web3 gaming in the whole industry. The community has a big hand behind it. The project does not go straight; there are some ups and downs, and at that time, a strong and loyal community is required that supports the project even in tough conditions.
Conclusion
There are other factors too, such as Governance, Incentives, Trust, and Transparency. All these make a token valuable, and a token is not just a token that you buy and sell in the market, but a token that represents the community and the whole project. Looking forward to seeing your comments. Please share this post on social media.
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Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring. Thank you, hive family ♥ |
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