Book Image

Tokenomics

By : Sean Au, Thomas Power(GBP)
Book Image

Tokenomics

By: Sean Au, Thomas Power(GBP)

Overview of this book

Tokenomics is the economy of this new world. This is a no-holds-barred, in-depth exploration of the way in which we can participate in the blockchain economy. The reader will learn the basics of bitcoin, blockchains, and tokenomics; what the very first ICO was; and how over a period of 5 years, various projects managed to raise the enormous sums of money they did. The book then provides insights from ICO experts and looks at what the future holds. By comparing the past, current, and future of this technology, the book will inform anyone, whatever motivates their interest. The crypto shift of blockchains, ICOs, and tokens is much more than just buying bitcoins, creating tokens, or raising millions in a minute in an ICO. It is a new paradigm shift from centralized to decentralized, from closed to open, and from opaqueness to transparency. ICOs and the creation of tokens during the craze of 2017 needed a lot of preparation, an understanding of cryptocurrencies and of emerging legal frameworks, but this has spurred a new movement to tokenize the world. The author gives an unbiased, authoritative picture of the current playing field, exploring the token opportunities and provides a unique insight into the developing world of this tokenized economy. This book will nourish hungry minds wanting to grow their knowledge in this fascinating area.
Table of Contents (18 chapters)
Tokenomics
Contributors
Preface
Index

Chapter 3. The Potential of ICOs

Whether or not you believe that history repeats itself, there is no denying that there are patterns. Patterns affect other patterns (like a kaleidoscope), patterns are found within patterns (fractals), or are hidden (the value of pi). Much of what we see today, in this new world of cryptocurrencies, blockchain technologies, and the new token economy, can and has been compared to various historic events of the past.

In this chapter, we will take a look at the potential of Initial Coin Offerings (ICOs) by taking a step back in time, before zooming into the future by looking at the following topics:

  • What is an ICO?

  • The difference between coins and tokens

  • The dot-com versus dot-coin bubble

  • Risk in ICOs

  • A new era of ICO innovation

We will start by explaining what an ICO is and all the associated terminology, before interpreting the days of the dot-com bubble back in the late 1990s/early 2000s and comparing them to what many now call the "dot-coin bubble," where many...