The Arbitrary Nature of Token Value
Sunny Lu, the founder of VeChain, recently stirred the pot at BlockShow Asia 2019 with his bold assertion regarding the value of tokens. According to Lu, an astounding 99% of a token’s worth is tethered to speculation rather than any substantive benefit it might bring to society. This raises the question: are we just dancing along to the beat of a speculative market without genuinely contributing to the innovation of blockchain technology?
Identity Crisis in Valuing Blockchain Projects
Valuing blockchain projects is akin to finding a unicorn in a haystack. Eddy Travia and Matthew Roszak voiced their commiserations over this valuation dilemma. Roszak remarked, “There’s no way forward, no good practice that you can look at and mirror.” This seemingly endless search for a reliable framework hints at a deeper issue within the blockchain community: the need for clear and practical guidelines that can help businesses quantify their worth.
Persistence in the Face of Uncertainty
Navigating this chaos might feel like learning to swim in a tidal wave, but hope is not lost. Both Travia and Kravchenko emphasized the importance of user involvement in building a stable ecosystem. Without it, the tokens we create might not stand the test of time or retain any semblance of value.
The Quest for a Stable Currency
As someone who enjoys a good debate, Dr. Pavel Kravchenko pulled no punches when he suggested that the industry needs a form of currency that can withstand the pressures and fluctuations of the market. But what constitutes a ‘stable currency’ in the context of tokens? Travia piped in with skepticism regarding traditional currencies, further muddying the waters and inviting opinions that may lead us to redefining fiscal stability in the cryptocurrency realm.
The Token-Project Value Connection
Greg Wasserman echoed the sentiment that the value of the projects is inherently tied to their respective tokens. This relationship can create barriers for innovation since project teams may become overly fixated on token performance rather than delivering genuine value through their offerings. If creating a valuable product becomes secondary to marketing a token, we risk missing out on the actual potential of blockchain technology.
Looking Beyond the Token
In light of these insights, the launch of xx coin by Elixxir’s President Jim Dolbear might signify a step in the right direction. With aspirations to support decentralized messaging, payments, and dApps, xx coin could hint at a shift towards focusing on actual utility rather than mere speculation. Could this be the answer we’ve all been looking for to evolve past the current token dilemma?
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