What Gives A Crypto Asset Value?

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What Gives A Crypto Asset Value?

Liquidity / Swaps / Fees | DeFi

DeFi opened up a whole new way for companies and platforms to earn revenue. The fees collected from these DeFi platforms are much in the same as a centralized exchange taking a fee for each trade. However this fee is injected back to those providing the "exchange" or "liquidity" which pumps the value of the token. However with that comes a balancing game of making sure your own tokens emissions are not too high (inflation) while market conditions and liquidity, trading dry up. But then provide a high enough emission when markets begin to steam roll again. Looking at a DeFi platform is like looking at a successful centralized exchange.

Use Cases

If no one is using your token it has no value! Yes Zippo! If someone is not willing to do or trade something for those millions of tokens you have it's essentially worthless. Use cases is critical to the success of any currency which is what crypto is. We have seen fully platforms launch into crazy high values based simply on play2earn. Take Splinterlands for example and how many systems and revenue generation methods that have and how it's warming up into being a pool type system that gets paid back to its players while also paying devs.

But what if a token had many use cases?

The biggest example I can think of this successfully done is yet again Ethereum. DeFi, NFTs, trading, soon staking and so on this token does many things including supporting layer 2 assets like polygon(MATIC) and many others. All of this provides value back to the core token.

Ads | Business Mindset

I know many here will tell me it's pointless to run ads on things like 3speak, hive and so forth. But flat out ads are the single best thing that provides a core baseline of value to any current social business model.

For example Youtube basically ran ONLY off of ads and built a massive empire. It wasn't until recently they started to incorporate things such as paid memberships, donations etc in which they take a rather large cut of. These same things could be applied to 3speak, hive and LEO already does some of this with great success.

One of the biggest things I learned in business and creating a successful product is you don't want to be the first. You want to take what is already successful and mimic it. Your costs will be far less and your chances of success much greater. Taking successful web2 models and building a tokenized version of it where those generated fees, ad rev, sponsors etc all goes back to a governance pool and divided out to stackers and those actively contributing to the social platform is what I personally believe is the holly grail of what a web 3 application would look like. Don't get me wrong it's no easy task.

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Ha Ha Ha

One of the biggest things I learned in business and creating a successful product is you don't want to be the first. You want to take what is already successful and mimic it.
Love it, there's enough business for many similar projects and competition is good for the consumer!

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I love the Ads/Business mindset part because it has a proven track record. Mimicking that on crypto is like having the best of both worlds. Adding this layer on any crypto project could have the biggest potential in generating the network effect.

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I know many here will tell me it's pointless to run ads on things like 3speak, hive and so forth.

The difference here is that instead of putting ad revenue in the pockets of the platform, it's redistributed to owners of the token.

You know, the ones actually providing the value that generates the eyeballs that advertisers want to pay for.

LeoFinance implementing this feature on the social side of leofinance.io can't come soon enough.

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I agree that running some form of advertisement is great for business. But users should have an option to remove them from their personalized UI. Then they don't get a share of the ad revenue. It's pretty simple, just like brave.

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You are spot on. Monetizing the platform to the benefit of the users/owners of the tokens is key.
And advertising is an obvious starting point. But it is by no means the only way forward.

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It's all about use case.

If your token has no purpose then it has no value.

I know many here will tell me it's pointless to run ads on things like 3speak, hive and so forth. But flat out ads are the single best thing that provides a core baseline of value to any current social business model.

Ads are exactly what every site on hive needs right now.

Actual revenue coming into the eco-system and if every one of the social apps integrated adds today with a model distribution model like leo plans to do we would see tens of thousands of hive bought off the market monthly and given out to the users with hive already staked to their wallets.

That in itself would be a reason to power up hive and receive a share of the ad revenue.

I've said it to everybody for years including blocktrades, guiltyparties and aggroed for the main hive based sites and the fact the leo are going to do it is what makes me so bullish on the site.

It would have a huge effect on the token price and the eco-system if the main sites like peakd, hive.blog, ecency and the tribes all did the same and funneled the revenue back to hive holders.

Leo does about 4k a month in revenue. The rest combined would surely do well over 20k a month maybe even up to 50k.

It would also give the community a huge incentive to create more content, better content, evergreen content, bring more people to the site, share their work.

It's the way forward.

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