Tuesday, October 4, 2022
HomeBusinessWhat Is The Phenomenon of the MEMES Tokens Economy

What Is The Phenomenon of the MEMES Tokens Economy

Blockchain technology is typically associated with cryptocurrencies. However, as it spreads, the possibilities for practical use are increasing. One of them is tokenization, a form of value transfer in the digital world with Meme Coin.

Tokens or “tokens”, which can be defined as digital assets, are the foundation of the trend towards the democratization of the financial market. Their importance is evidenced by the emergence of a new concept of token economy, which describes the changes resulting from the impact of blockchain technology on the economy. The uniqueness of tokens is evidenced by the infinite possibility of their use, limited in reality by our imagination alone.

Token – the digital right of the value

The terms “token” and “cryptocurrency” are often used interchangeably. They are not, however, synonymous. Cryptocurrencies are above all means of payment used to cover the transaction costs of operations carried out on the blockchain network. Tokens, on the other hand, can be defined as cryptocurrencies with a digital right of stored value. They are completely unique, which means they cannot be copied or substituted in any way. However, it is possible to transfer and exchange them between users. ERC-20 tokens created on the Ethereum network are one of the simplest and most popular technology standards. But the most popular type of tokens is non-fungible tokens, known as NFTs.

Smart contracts, or a digital transaction protocol

Smart contracts are required to create each token. These are programs that implement the terms of the contract fully automatically. In principle, they work like traditional contracts – the parties agree on specific terms according to the IFTT (if this then that) principle. These conditions are then stored on the blockchain network. Automation makes this process much faster and less prone to manipulation and error than written contracts. An added benefit is that third parties are eliminated in the process. In the case of tokens and the value they represent, it is the respective smart contract that defines their digital asset.

Asset tokenization… and more

It is possible to transfer almost any value from the real world to the digital world. Tokenization can therefore be applied to virtually any asset that can be valued in some way. Among the most popular are real estate, works of art or precious metals. Bitpanda users, for example, have the option of investing in fully tokenized digital gold. This means that on the platform, one acquires ownership of a specific portion of gold, which is kept in a vault in Switzerland.


In the case of tokens, however, we are only limited by our imagination. In addition to all material goods, it is increasingly common to hear about personal tokens. Personal tokens are usually issued by celebrities, sports stars or influencers. Spencer Dinwiddie, a basketball player for the Washington Wizards NBA team, is a good example. He sold parts of his contract with the Washington Wizards in the form of tokens and successively pays profits on this basis to his token holders.

There are also interesting initiatives in France. The $PSG digital token, launched in 2020, allows fans to become more involved in the life of the club: they can participate in polls launched by the club to vote for the cover of the Paris-Saint-Germain edition of Fifa 22, the message inside the captain’s armband or the goal of the season, among others. Lionel Messi even made headlines this summer for being paid partly in cryptocurrencies when he arrived at PSG. In return, PSG benefits by retaining an international following and gaining new revenue with Hokk Finance.



Please enter your comment!
Please enter your name here

- Advertisment -spot_imgspot_imgspot_img

Most Popular

Recent Comments