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. It 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 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.
With the media hype about bitcoin, this book appeals to anyone, from those with a general interest in anything crypto to those with some knowledge of the nuances between cryptocurrency, ICOs, IPOs, and the oken economy.
Chapter 1, Once Upon a Token, provides an introduction to tokenomics looking at the meaning of a network of markets and compares the Internet of information versus the Internet of value and what tokenomics is. It looks at the first occurrence of the word tokenomics and discusses tokenization and the benefit it provides.
Chapter 2, A Bit of Coin Theory, lays the foundation, with a bit of coin theory looking at digital currencies before bitcoin and why they failed, and how bitcoin was born, along with some of the founding principles. After bitcoin, we look at the era of alternative coins known as "altcoins" and then take a deeper dive into what a blockchain actually is, including how you can find a Nelson Mandela tribute on the blockchain. We then introduce you to smart contacts and provide an overview of the peak of the ICO craze in 2017.
Chapter 3, The Potential of ICOs, looks at the potential of ICOs, including what an ICO is and the associated and somewhat confusing terminologies involved. We do a comparison between the dot-com bubble and the dot-coin bubble, then we consider the challenges ICOs face, and we finally take a quick look at the new era of ICO innovation that will result from this massive global crypto experiment.
Chapter 4, Token Varieties, takes you on a journey back in time to the very first ICOs on the bitcoin blockchain, then ICOs on custom blockchains, before delving into a number of ICOs on the ever-popular Ethereum blockchain. We also highlight non-blockchain technologies.
Chapter 5, The Need for a Token, asks the question on everyone's lips: do we really need a token? We go through various thought experiments and compare how existing companies versus new companies incorporated tokens into their business model. We present some critical consideration points, to guide you if you are looking to start your own token creation journey.
Chapter 6, Playing by the Rules, introduces you to the concept of security tokens and looks at what they are in the context of ICOs. We then explain the Howey Test and outline the global stances of regulators around the world. We also present several case studies, where the US regulators closed down ICOs for unscrupulous behavior. We also discuss the evolution of white papers.
Chapter 7, The Token Sales Mechanics, explores the often very creative token sales mechanics of several high profile ICOs, looking at the token supply, distribution, presales strategy, and bonuses provided. It considers ICOs that had a hard cap, a soft cap, and even those with no caps and explains the concept of a reverse Dutch auction. Finally, we look at some token mechanic considerations as a guideline.
Chapter 8, White Paper, Website, and Team, looks at the critical components of an ICO, namely the white paper, the website, and the team. White papers have certainly evolved from being technical and mathematical in nature, to being marketing brochures and investment statements. The chapter elaborates on why a well-designed website is very important, along with a great team to boot because quite often, it is not the idea but the people behind the idea that is the difference between success and failure.
Chapter 9, Social Media and Influencers, presents social media and influencers from a different light, exploring the deeper meaning of being social, before explaining what social media is. It then looks at how ICOs use social media, and covers some of the major influencers in the crypto landscape on Twitter and YouTube.
Chapter 10, Marketing and the Launch, covers the marketing and launch of an ICO by describing the state of ICO marketing, examining the messaging and tools used, and, of course, discussing the all-important community aspect. It also explains various marketing strategies, such as bounty campaigns, airdrops, and announcements, which all build up to the launch date.
Chapter 11, Voices of the ICO World, provides a unique insight into several ICO founders: their projects, their tokens, how their ICO went, and general thoughts on the future of ICOs, tokens, and the token economy.
Chapter 12, The Future, looks at the future, highlighting that bitcoin is the only true cryptocurrency without a leader. It takes a closer look at a world full of tokens and what happens when saturation hits. It also covers the rise and importance of privacy coins, quantum blockchains, governments, and societies.
We also provide a PDF file that has color images of the screenshots/diagrams used in this book. You can download it here: https://www.packtpub.com/sites/default/files/downloads/9781789136326_ColorImages.pdf.
There are a number of text conventions used throughout this book.
Bold: Indicates a new term, an important word, or words that you see on the screen, for example, in menus or dialog boxes, also appear in the text like this. For example: "To the technical purest amongst us, in an ICO, the coins that investors receive are actually digital tokens, which is why sometimes they are called an Initial Token Offering."
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