Whenever friends or family ask me about tokens, they usually have two questions: what should I buy, and how much should I put in? But it’s been a while since any of them have mentioned tokens, and there’s a reason for that: in most cases, people only start to take an interest in tokens when hype is strong and prices are rising. Many token holders have had similar experiences during crypto bull runs.
Turbulence and fear in the token economy
After a rocky 2022, onboarding new adopters has become more difficult. Last year’s industry-shaking events, most notably the collapse of Terra and FTX’s blowup, have shaken confidence in tokens. While such events can spook even the most ardent believers, crypto has always been something of a rollercoaster. In fact, I’d argue that shakeouts strengthen the industry in the long run.
“We hope to see the ecosystem move past boom and bust cycles.”
But it’s difficult to attract new adopters when there’s fear in the air. At token.com, we hope to see the ecosystem move past the cyclical, boom and bust pattern that defined its early years. That way, more people will come to the token space to buy tokens according to their interests and because they believe in financial inclusion rather than because they see prices rising and “FOMO” is kicking in.
A nascent technology
But I think we’re still a long way off from living in that world. As recent events have shown, tokenization is still in its nascent, experimental stages. Still, token.com is working towards making it happen faster. We’re doing this in a few ways, such as educating customers and focusing on simplicity. If we don’t work together as a community to make tokens more accessible, the space will not grow in the way we are all hoping it does.
Just as importantly, Collections are tailored towards new adopters. The average person isn’t familiar with buzzwords like “DeFi” or “Layer 2.” That’s why we built a product to group the most promising tokens on the market according to different niches. We’ve gone further with some of our Collections by curating them with new users in mind. A good example is The Crypto Starter Pack, which features key projects like Bitcoin, Ethereum, Aave, Polygon, and Chainlink. We hope that this Collection will answer the “what should I buy?” question. We also have a “buy” button with a set limit that people can adjust according to their funds.
The importance of education
With so many tokens on the market, navigating the space has never been harder. What’s more, 2021 and 2022 in crypto hit polarising extremes that have shaken even expert users. Without a doubt, it’s been a rough ride for new users. In the heat of the bull market, people often get carried away with their expectations. And in the depths of the bear market, people often lose hope altogether.
“In bull markets, people often expect too much. In bear markets, people often lose hope.”
At token.com, we want to see tokenization reach its full potential. We want to build towards a freer society with a more level playing field. That means moving beyond price volatility that the space is often gripped by. For anyone who’s already involved in the space, I’d urge you to zoom out, focus on the big picture, and educate people on why tokenization is important. We’ve still got a long way to go on this journey, but the rewards will be worth the wait.
Mel Gelderman, CEO of token.com
Please note: Investing in cryptoassets is risky. Due to the volatile nature of the cryptocurrency market, investors run the risk of losing their funds when they make an investment. Returns from cryptoasset investing are not guaranteed, therefore users should always be aware of the risks.