The crypto world is going through a chapter that will fundamentally change how the internet works and how online communities interact. Social tokens are at the heart of the latest developments in this transformation, called Web3. Their rise comes at a time when Web3 is gaining popularity, especially among crypto enthusiasts. So how do these social cryptocurrencies work and which ones have the potential to grow?
What are social tokens?
Social tokens are cryptocurrencies used as a form of protection. They are powered by blockchain technology and allow community creators, influencers and businesses to monetize their fan bases. Fans who purchase these tokens are often given access to exclusive content and product offers. The main advantage of this token model is that the tokens are usable and can be resold.
The social token is based on a Blockchain-based ownership model. So they basically have the same concept as NFTs. However, they serve a different purpose. NFTs are used to represent real real world assets and cannot be changed. However, a social token can be exchanged and divided. This makes them a medium of exchange that is possible to monetize online communities and services.
What do social tokens do?
There are two main categories of social tokens: personal and community. Personal tokens are often created by individuals to monetize some form of labor and experience. An example of this is the ALEX token. It is based on the life of crypto entrepreneur Alex Masmej. Masmej launched this token to fund its relocation from San Francisco to Silicon Valley. Today, investors own at least 5,000 ALEX tokens. These get exclusive access to Masmej’s newsletter and the token’s Telegram chat.
Community tokens are designed to reward participation in a group environment. These are developed for use in online communities that want to increase their network tokens. Many community token apps use access online communication platforms such as Slack, Discord, and Telegram. For example, the SWAGG token is a unique example of community tokens. Holders of this token get numerous benefits, including access to Swagg Drops before they are made public.
Why are these tokens important to Web3?
Social tokens are designed to strengthen the distribution of value matching member contributions. Therefore, these cryptocurrencies are perfect for integration into Web3 environments. Web3 has the principles of decentralization and self-management. It focuses on delegating management by giving users more privacy control options. Therefore, social tokens seem to be the engine of Web3 for donating and decentralized management.
What are the best social tokens?
Currently, there are many social tokens in the cryptocurrency market. Each of these tokens offers some community benefits. As Kriptokoin.com, we have compiled the ones with the largest market caps for you below.
- Rally
- Torum (XTM)
- Mint Club (MINT)
- Olive (OLY)
- Carbon (CRBN)
- Dev Protocol
- Donut (DONUT)
- Corite (CO)
- Kitty Coin Solana (KITTY)
- CRB Coin (CRB)
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