I’ve written a bit here about crypto tokens. How they can be a monetization model for new protocols. How they could be a new monetization model for online media. How they can be a business model for an online “commons.” And why USV invested in a hedge fund that will invest solely in these tokens.
I believe that these crypto-tokens are an important innovation in the world of technology. They allow for the financing and monetization of technology projects that rely on a network of contributors (of software engineers:open source, of contributors:online communities, of computers:p2p systems, etc) to deliver value to the market.
To date, we have mostly seen tokens used as financing vehicles. The last time I looked, over $300mm has been raised in “Initial Coin Offerings” (ICOs) to finance projects like the ones I referenced above. That number continues to rise as more tokens are sold to raise funds to develop these new businesses.
But the longer term implications of tokens have more to do with monetization than financing. And I think its a very elegant and powerful idea that the same “currency” can be used to both finance and monetize a network.
So with that preamble, I am excited that the first ever Token Summit will take place in NYC on May 24th and 25th. This event is being organized by AVC regular William Mougayar and Nick Tomaino, who runs The Control, which I blogged about a few months ago.
William blogged about Token Summit today and says this about the event:
We have identified the following themes that will be debated in a variety of formats, including on-stage interviews and panels.
Token-based Business Models
How do tokens contribute to a business model? When do they make sense? How does an entrepreneur monetize? Where is the real value?
Token Protocols and Platforms
What are the emerging token-based assets? Where/How are we going to trade them? What are the implications for fund managers?
Distribution Mechanics
Lessons and best practices for pre, during and post initial cryptocurrency and token sales, including governance.
Valuation Strategies
How do investors and users value tokens? How does a token transition from a speculative to utilitarian function?
Legal Implications
Legal, regulatory and ethical practices for token creations.
I plan to attend this event and I encourage everyone working in or around this space to attend. It will be an interesting and lively discussion.
If you want to attend the event, you can register here.
