Pro
The Social Token Thesis
Key Insights
- Novel token distribution mechanisms which appeal to retail audiences catalyze bull markets — social tokens are one such distribution mechanism.
- Social tokens like WHALE, ALEX, and FWB have historically failed to catalyze sustained bull runs due to problems at the discoverability, UX, and utility layers.
- New platforms like Purple Trader and near-term events like the World Cup could spark a resurgence in social token demand.
- If social tokens make significant improvements to their utility, their end state could look something like the “network states” described by Balaji Srinivasan. The TAM of such an outcome is large.
A billion dollar question looms on the minds of crypto investors: when bull run?
The collective consciousness known as “the market” has spawned countless theses speculating on what will be the next bull market catalyst. One prominent thesis is that novel token distribution mechanisms — ICOs, yield farming, NFT mints, etc. — are what catalyze bull markets.
Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.
