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

The dot-com versus dot-coin bubble


The most common comparison to what is happening now in the cryptocurrency world is made with the dot-com bubble, where between approximately 1997 and 2001, a period of excessive speculation and exuberance, coupled with a significant growth in the usage and adoption of the internet, fueled a frenetic feeding frenzy. Investors and venture capitalists poured money into companies, many of which operated at a net loss, to harness the network efforts and to build market share. The network effort was a great sell because the more something was used, the more value it had due to the users on the network. Any company with a domain name ending in .com, or with the promise of eCommerce, was having money thrown at it, even if the business model was flaky, sketchy, or even nonsensical.

Compare this to early 2014 to 2016, where companies only had to mention the word "blockchain" in their pitch deck to have investors throwing cash at them. Existing companies would pivot...