By
Chimamanda U. Martha
April 22nd, 2024
This year, companies like Student Coin found a way to help entrepreneurs without too much effort while respecting investors’ needs.
Initially created to speed up the crypto transactions, tokens have come to be used in the most interesting ways and areas, being more useful than originally thought.
And as the year 2021 began with a huge demand for crypto services, it became much clearer what tokens could offer. In this article, we will talk about two of the most popular and promising token utilities for this year.
Ownership Evidence with Non-Fungible Tokens
These are not new concepts. NFTs were ready for the public since 2015, but they got the spotlight by the end of January 2021. In case you don’t know what NFTs are about, note that they are tokens that represent ownership information.
In other words, if you want to send an item (either digital or physical), you can link it with an NFT token that will record the transactions into the blockchain. What makes NFTs special is that they can not be replicated or counterfeited. Each NFT is unique and corresponds with a code. So it can’t be stolen, and no one could claim they have one when they don’t.
This opens the gates especially to artists, who struggled for years to be recognized and remunerated for their hard work. And we are not talking about just a couple of dollars. Trevor Jones got over $500,000 for a single oil painting version of Batman, for example.
Besides that, since somehow the Pokemon cards got back into public attention, so did NFT collectibles – especially those who are part of a collection. Some Crypto Punks cards, for example, reached a value of over $7 million.
Why are people buying NFTs, you wonder? Well, part of them with the intention of selling them at a higher price. But most of the investors are interested in having proof that they own something authentic, not a copy.
Crowdfunding Projects
This is another thing that people struggled with for years – getting money to start their own projects. Of course, there are solutions in the fiat world already, but not that convenient or reachable. Getting a bank loan has gotten tricky, especially because of variable interest rates. Plus, the economy is more fragile than ever after the tumultuous 2020.
Looking at startup fundings, things are not pink either. The competition is very strong, you need to come with something entirely original, and you don’t receive all the money at once. In the US, for example, just 6% of startup projects receive funding from these sources.
If you are going to fiat crowdfunding platforms like Kickstarter or Patreon, the investors would want something from you, and if you don’t have too much time on your hands, then there’s no chance you will succeed. That’s where tokens get the spotlight.
This year, companies like Student Coin found a way to help entrepreneurs without too much effort while respecting investors’ needs.
How did They Do That?
It’s simple. These platforms allow users to customize their own token without needing technical knowledge. The token can be put on sale on the platform, and the investors can use it for trading. The entrepreneur uses the funds raised to launch his business idea and starts to pay back the investors cyclically after gaining profit.
Both parties are happy, and the crypto area expands.
Conclusion
Whether you want to open a business or just buy something safely, crypto can certainly solve both of these issues.
So if you got tired of simply trading your crypto, step up your game and try the 2021 token trends!