Tokenomics / Tokenisation / Token Economy

[TrendFollower 587]

I thought it was a good time to start a completely new thread in relation to the next phase after Blockchain and Cryptocurrencies. This next phase is tokenisation. I include some links below which will help those who are not too familiar with the concept. 

Tokenomics

https://decryptmedia.com/resources/tokenomics

 

Tokenomics - A Business Guide to Token Usage, Utility and Value

https://medium.com/@wmougayar/tokenomics-a-business-guide-to-token-usage-utility-and-value-b19242053416

 

Token Economy

https://tokeneconomy.co

 

EToro Acquires Firmo With A Plan To “Tokenize All Assets On EToro”

https://thetokenist.io/etoro-acquires-firmo-with-a-plan-to-tokenize-all-assets-on-etoro/

The above is a very good example of IG's competitor trying to steal a march on its rival and be proactive. 

[JamesIG 283]

Thought this was related:  https://www.coindesk.com/the-sec-just-released-its-crypto-token-guidance

[TrendFollower 587]

@JamesIG,

Thank you very much for sharing this. It is very much appreciated. I want this IG Community to be proactive and ahead of the game in relation to the 'Cryptocurrency and Blockchain' section.

I believe that there is some serious traction in 'Tokenisation' and some really exciting opportunities being developed too. 

We may have to add 'Tokenisation' to the section title very soon in the future once people start understanding what is happening now and what plans are in the pipeline for the coming future. It may well be:

Cryptocurrency, Blockchain and Tokenisation

[TrendFollower 587]

I wanted to share this report released by the EU Blockchain Observatory:

Tokenization of physical assets and the impact of IoT and AI

https://www.eublockchainforum.eu/sites/default/files/research-paper/convergence_of_blockchain_ai_and_iot_academic_2.pdf?width=1024&height=800&iframe=true

[TrendFollower 587]

I thought this was a very interesting article which is exciting for the future as well.

MeaWallet launches multi-scheme merchant tokenization

https://www.finextra.com/pressarticle/78158/meawallet-launches-multi-scheme-merchant-tokenization

This next article supplements the article above nicely:

What Is Network Tokenization?

https://www.paymentsjournal.com/what-is-network-tokenization/

Now this next article is explaining the potential of tokenisation - A look into the future!

Here's Why Interest In Tokenizing Assets Is Starting To Surge

https://www.forbes.com/sites/laurencoleman/2019/04/25/heres-why-interest-in-tokenizing-assets-is-starting-to-surge/#4799455140a5

Those who understand 'tokenisation' and how significant it is going to be will be able to try and identify those assets which they could invest in which could offer potentially lucrative returns in the long term. There are some really interesting early stage companies and start ups operating in this arena which are gaining traction and momentum. 

 

[TrendFollower 587]

I am getting a few readers who have read this thread and would like me to explain in simple terms what tokenisation is. So here goes...

Tokenomics is basically about understanding the utility role of a token. Now once you have a use case and purpose, users will start demanding that token. So for example one of the use cases being discussed right now is for the 'Toll'. Based on reports I have read it seems Jaguar Land Rover have teams up with IOTA (Crypto Token) to deliver this service of drivers being able to pay Tolls using tokens. This in its simplicity is tokenomics. When enough tokens are being used to pay for goods and services seamlessly without having to find loose change or go to an ATM which can be inconvenient at times then it will become the 'Token Economy'. 

So when any goods or services can be provided in exchange for tokens (seamlessly) then this is in essence 'Tokenisation'. 

[TrendFollower 587]

Tokenized Securities Exchange Currency.com Launches to the Public

https://www.coindesk.com/tokenized-securities-exchange-currency-com-launches-to-the-public

[TrendFollower 587]

Here are some really interesting developments that some of you may be interested in.

Enterprise BaaS Kaleido unveils upgrade and tokenization tools

https://www.ledgerinsights.com/enterprise-baas-kaleido-unveils-upgrade-and-tokenization-tools/

Resolute.Fund to Launch Tokenized Real Estate Fund through Swarm

https://www.securities.io/resolute-fund-to-launch-tokenized-real-estate-fund-through-swarm/

The reason why I am sharing these articles is for those on the IG Community who are interested to see some of the developments taking shape in this area.

[TrendFollower 587]

This whole new technology and asset class is going to find a way of tokenising goods and services and this revolution has began. 

Tokenisation is coming to all goods and services near you. 

[TrendFollower 587]

Visa Token Service expands in Europe

https://www.finextra.com/pressarticle/78472/visa-token-service-expands-in-europe

A lot of investors are not realising that tokenisation is happening now. There are a lot of interesting start ups in this space. 

[TrendFollower 587]

Some more encouraging news within this area.

Standard Tokenization Protocol Raises $7 Million in Funding

https://www.crowdfundinsider.com/2019/05/147880-standard-tokenization-protocol-raises-7-million-in-funding/

 

CRE Equity Tokenization: A Path for Enhanced Liquidity

https://www.cpexecutive.com/post/cre-equity-tokenization-a-path-for-enhanced-liquidity/

 

[TrendFollower 587]

Some of you who are new to this concept of 'Tokenisation' will find this link rather informative. 

Tokenization, Explained

https://cointelegraph.com/explained/tokenization-explained

This next article is interesting when you start digging deeper into the tokenisation and how it can be used and applied by a business.

Irina Heaver: Tokenising a football club

https://www.coinrivet.com/irina-heaver-tokenising-a-football-club/

 

[TrendFollower 587]

This is an interesting article from Deloitte's on Tokenisation of assets and how it is disrupting the financial industry. 

https://www2.deloitte.com/content/dam/Deloitte/lu/Documents/financial-services/lu-tokenization-of-assets-disrupting-financial-industry.pdf

I appreciate there is a lot of scientism on tokenisation but I shall let you decide if you perceive this as a credible source or not rather than a company or website with an article that not many have ever heard of.  

The Bank of France is closely looking at the tokenisation of assets as explained in the article below:

French Central Bank Governor: The Bank of France is Observing Tokenized Securities, other Digital Assets “With Great Interest”

https://thetokenist.io/french-central-bank-governor-the-bank-of-france-is-observing-tokenized-securities-other-digital-assets-with-great-interest/

For some of you who do not fully understand or appreciate this area then I would urge you to start at the beginning of this thread and go through the information and obtain the necessary knowledge and understanding before jumping to a strong opinion or view either way. 

[TrendFollower 587]

The Middle East seems to be embracing 'Tokenomics'. Please see the article below for further information. 

UAE second in global token sales

https://www.arabianbusiness.com/banking-finance/422182-uae-second-in-global-token-sales

The UAE wants to apply government transactions on the blockchain and apply it to Dubai's smart city ambitions. UAE are embracing this technology as they realise they are in the middle of the globe in terms of payment transactions and supply chain from west in to east and vice versa. It wants to be the hub for global trade both from the physical sense and digital sense and this includes digital transactions.

[TrendFollower 587]

This is an excellent article that I have come across this morning which highlights the Bank of England (BOE) Governor looking at tokenised assets.

‘Billions’ May Be Saved By Tokens Backed With Central Bank Money: BoE Chief

https://www.coindesk.com/billions-could-be-saved-by-tokenized-assets-backed-with-central-bank-money-boe-chief

All I would say is for people to keep an open mind and not allow any stubbornness or bias to cloud their judgement or thinking. 

[TrendFollower 587]

Visa are beginning to flex their muscles in relation to tokenisation. This article has just been released.

Visa Buys Rambus Payments To Tokenize Any Transaction On Any Network

https://www.pymnts.com/visa/2019/visa-buys-rambus-payments-to-tokenize-any-transaction-on-any-network/

[TrendFollower 587]

This area is where many have little knowledge and understanding and there are so many misconceptions and misunderstanding of tokenisation.

The article below highlights the importance of tokenisation when it comes to security and compliance for the modern PSP

https://www.paymentsjournal.com/why-tokenization-is-key-when-it-comes-to-security-and-compliance-for-the-modern-psp/

[TrendFollower 587]

I am seeing an increase in investment opportunities on Crowdfunding websites that have incorporated some form of 'tokenisation' into their business model. Now I am not sure whether this is a good or bad thing. Time will tell as a lot of these companies just jump on the bandwagon to attract more capital from those who know and understand very little. 

A nice interview article below which makes some interesting points. 

Interview with Eloisa Marchesoni - WBS Dubai Coverage

https://coincodex.com/article/4896/interview-with-eloisa-marchesoni-wbs-dubai-coverage/

[TrendFollower 587]

This is something which could gain traction if it proves to be a successful model. This has not yet been proven and only time and success will tell if tokenisation can be applied successfully in cases like this.

Wesley Snipes To Tokenize $25 Million Movie Fund With Security Tokens

https://thetokenist.io/wesley-snipes-to-tokenize-25-million-movie-fund-with-security-tokens/

[TrendFollower 587]

Making transactions online via our computer, laptop, tablet or mobile phone is the now and future. However with this comes risk of the theft of our data somewhere down the line. 

I think this article highlights why tokenisation can assist in this area and it is being launched by Google in India. India has a huge population and is a huge market to test digital innovation. I appreciate there are those who dismiss 'Tokenisation' because it is associated with 'Blockchain' and then those who dismiss both because of its association with 'Cryptocurrencies'.

Some big players are incorporating 'tokenisation' into their business offerings and this is happening now and is projected to increase significantly in the future. 

The likes of Amazon, Google, IBM, Microsoft and Apple are all embracing Blockchain technology and Tokenisation. If this really is garbage and a fad (I don't believe it but I know some are convinced of it) then why are these companies even bothering?

Google For India: Understanding Google Pay Virtual Tokenized Cards For Secure Payments

https://www.news18.com/news/tech/google-for-india-understanding-google-pay-virtual-tokenized-cards-for-secure-payments-2314987.html

One cannot simply dismiss something because they do not understand it properly. I believe in time to come 'tokenisation' will bring with it some fantastic and compelling investment opportunities. I have already taken equity stakes in some exciting UK start up's which are looking to disrupt the loyalty and payments offering in the UK and then internationally. These are early growth businesses at a very early stage. The one's that make it will either IPO in the future or be acquiring by larger companies. This is going to be a very exciting growth area in the future in my personal opinion. 

There is material online available on this subject matter and books as well. They are worth a read before dismissing this as a compelling investment opportunity. A lot of these companies are private companies which have not listed yet.

 

[TrendFollower 587]

Tokenisation is still seen by  some as a FAD or some fraudulent ICO, etc. It is this misunderstanding of what tokenisation really is and how it will benefit both companies and its consumers in the future which is so critical at the moment. 

Once you open your minds to Blockchain and Tokenisation and put aside the daily Cryptocurrency price fluctuations then you will realise how this area is gaining shape and how it is looking to be implemented. 

Tokenisation as a Future of Payment Security - Payments Journal

https://www.paymentsjournal.com/tokenization-as-a-future-of-payment-security/