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 peak of ICOs


When the ICO wave hit its peak in 2017, there was a mad rush to learn what was going on and how it all worked. Many people followed instructions issued by the company on how to buy into the ICO, but it was a very new and often complicated process. It involved sending bitcoin or ether to a given address that was published on a bitcointalk forum, on a Slack channel, or on the official website.

Take, for example, the Monaco ICO. An investment of one ether would return 150 MCO tokens. Monaco opened the ICO on May 18, 2017, when 1 ether was about $100 USD. This meant that one MCO was the equivalent of $1.50 USD.

The ICO finished on June 17, and about a month later, it listed on exchanges. By the end of August, it had very quickly shot up to $22 USD. The 150 MCO tokens would now be worth $3,300. That is a whopping 1,366% increase.

Figure 10: Monaco price chart showing volatile swings (https://www.worldcoinindex.com/coin/monaco)

The success story being shared was that the tokens would...