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

Summary


When ICOs burst onto the scene, no one could have predicted how large the legal ramifications would be. For those that did, they either tried to ignore it and fly under the radar or got in fast in order to minimize retrospective effects. The challenge is that while every ICO claims utility, many business models are designed to increase utility in order to drive up demand and thus the value or price of the token. With this increase in value, many have the expectation of profits.

In this chapter, we learned what a security is in the eyes of the SEC and looked at the Howey landmark case when determining if something is an investment contract or not from a US perspective. The global regulatory stance of various countries was discussed, where, in general, other than the outright ban from China and South Korea, regulators are open to working with businesses within a framework in an attempt to not stifle innovation.

The SEC started sending signals in the latter half of 2017 and its reports...