For a considerable amount of time in recent
history, initial coin offerings, or ICOs as they are commonly
abbreviated, have been the de facto standard for defining the confluence
of a new technology like blockchain and the traditional world of
investments. However, the inherent flaw with the ICOs was that they
offered utility tokens.
What Are Utility Tokens?
Utility
tokens, as the name defines, represent a certain utility that holds
value only within the product or the project ecosystem. Although utility
tokens were marred by scams, they have to be given the credit of
unifying blockchain and investments.
Utility
tokens and their success is purely built on speculation albeit a
calculated one. The value of the utility tokens during the token sale or
when traded on third-party exchanges is purely contingent upon this
element of speculation rather than the tokenomics model.
What
is this element of speculation that was eliminated? What if there was
some tangible value to some tokens that represent an investment but at
the same time, also hold value in the real world?
The answer lies in asset-backed tokens! Read more - https://hackernoon.com/asset-backed-tokenization-everything-you-wanted-to-know-9m4m32n0
