What Are Social Tokens?
Social Tokens are a type of cryptocurrency that a brand, community as well as and influencer can use to show their skills. Furthermore, these tokens are decentralised and secured by blockchain. Moreover, with the help of social tokens, the content creator is able to remove the barriers and put forward a new principle of ownership in the digital economy.
Types Of Social Tokens
There are two types of social tokens. These are :
- Personal Tokens
Personal Tokens are made by individuals in order to exchange forms of labor. Moreover, they are made in the same style as cryptocurrencies, such as Bitcoin and Ethereum.
- Community Tokens
Community tokens are made as a means to obtain access to a community. Furthermore, these are same as membership cards.
How Do Social Tokens Work?
Social tokens are just like company stocks. One of the differences or features of social toke is that here everyone cannot buy the token but then the creator can decide who will get the benefit of the tokens. In addition to this, token owners get a fixed level of ownership from which they can obtain access.
Examples Of Working Of Social Token
One of the popular examples of the working of the social token is, for instance, if a motivational speaker is able to create a group of loyal followers to whom content can be offered, this is what a token can obtain. Other examples are:
- A membership community sells a social token that allows access, which can be resold if the community member decides to exit.
- An influencer sells a social token that allows their fans to invest in their career and profits.
Benefits Of Social Tokens
There are certain benefits of social tokens which are as follows:
- Reward Loyalty
Social Tokens can benefit users by transacting with the help of gifting them their tokens. Moreover, users who own tokens, depending on their token balances can reclaim services.
- Secure Exclusivity
It helps in improving the chances of inventing their services.
- Tokenizing Assets For Easier Sale
All information, as well as certificates, are offered as a digitized token with a social token system. Furthermore, this token serves as a seal of ownership and trust pertaining to the real-world value of the products sold.
Factors To Keep In Mind When Creating Social Tokens
The two main factors to be kept in mind while creating social tokens are :
- To create social tokens, the first important thing to be kept in mind is to go with the long-term. Furthermore, the social tokens are tied to an individual’s name. Social tokens are helpful in personifying the economy.
- The second thing to be kept in mind is to see the agreement as well business style and the ways the token fits into it.
How To Create Social Tokens?
There are 4 steps for creating social tokens:
Step 1: First an individual has to do is to set up a profile and apply to create a social token.
Step 2: The second thing is to give a name to the social token.
Step 3: Lastly, make a launch plan and announce the token launch on social media, and gain fans who can buy tokens.
Top Social Tokens To Buy In 2022
Swagg is one of the best social tokens of the Swagg network. Furthermore, Swagg permits the holders to get access to the Swagg House as it was made to promote teamwork as well as originality among the community members. Additionally, in order to enter the Swagg community, an individual has to have 400Swagg in their meta mask wallet.
Baepay is a social token that revolves around the Ethereum blockchain by Bae. it is a platform for outsides artists which helps them to show their artworks on the Ethereum Blockchain (What is Local Bitcoins, Ethereum and Altcoins). Moreover, Baepay is used to make payments on the platforms as it rewards both artists as well as liquidity providers in order to create a perfect economy.
- Rally (RLY)
One of the biggest functions of the RLY is that it helps the creators in launching their social currencies. RLY is the social token of the Rally Network which gets started on the Ethereum Blockchain; therefore, it is compatible as well as secure in nature.
WHALE came into existence in May 2020 through an NFT collector. It comprises a number of advantages that the holders enjoy. Some of the advantages include purchasing NFTs, buying selected NFTs, as well as renting NFT.
How Are Social Tokens Different From NFTs?
NFTs are part of a large classification of social tokens. The basic difference between the NFTs and social tokens is the fungibility factor. On one hand, NFTs are non-fungible whereas social tokens are non-fungible in nature. In addition to this, each unit of a social token has the same value as another whereas, In the case of NFTs, one thing will not have the size value as another.
Why Businesses Should Care About Social Tokens?
A social token is like paying a part of the community that shares in the social economy. With this token, a person can do anything they want such as transfers. Moreover, the owner of the social token is more indulged in that community.
Social tokens have a huge capability to reanalyze so that the companies are able to generate targeted business opportunities. Social tokens allow creators to make communities as well as construct their content.