Social Token: The Next 100x Massive Crypto Trend, Says Top Analyst Aaron Arnold
Closely-followed crypto channel Altcoin Daily discusses the point of view of the legendary investor, CEO of Real Vision Raoul Pal in his interview with Defiant’s Camilla Russo about the upcoming massive trend of social tokens in the cryptocurrency market.
“There will be more potential and interest in social tokens than in Defi”, says Raoul Pal.
In brief, social tokens can be broadly categorized into three categories:
- Personal Tokens — issued and controlled by a primary individual.
- Community Tokens — issued and controlled by a group, often managed by a decentralized autonomous organization (DAO).
- Social Platform Tokens — tokens that represent control over a platform that facilitates social token issuance and exchange.
Social Token Valuation
In terms of valuing social tokens, the CEO of Real Vision provided his valuation framework through a scenario when Walt Disney issuing its social token:
“There are about three billion people who love Disney and they will consume Disney in a number of different ways. Yet, Disney still has to advertise through Facebook, Youtube Google, Apple Music, Apple TV, Spotify because they don’t have a direct relationship with their fans,”
“What tokens do is give them direct access to those fans because you now have a relationship where that token is the currency of the Disney world. So I can buy things and if I happen to be a currency owner, I can get things that are discounts I can get certain access I might get to see the film a week early, I get so many benefits that I value as a fan and I might get Disney plus at a discount and if I renew my Disney plus every year, maybe I get more tokens and maybe I can build a business of selling Disney t-shirts and I charge them in Disney tokens,”
The CEO highlights that with social tokens, people start building businesses and building a whole economy around Disney.
Raoul Pal also points out the benefits of being a token holder is that they can share in the economic benefits of that community:
“If the community becomes more valuable, then I make more money. My token goes up. It’s an asset. So culture becomes an asset that you can invest in. This is game-changing!”
Pal then zooms out the potential of the social token and explains how it works with social influencers and artists:
“What happens if you can invest in the IP rights of that song of your favorite artist and then make your own Tiktok videos to try and drive its virality. You’re helping the artists create network effects, same with the new Disney film. So you’re creating this new GDP. This new value system out of nowhere where you are fully aligned with that brand, influencer, musician, sports star whoever it is.”
In the video, the CEO also reveals his personal bet: 55 percent Ethereum (ETH) and 25 percent Bitcoin (BTC), while the rest is distributed between the number of tokens. Regarding his “basket,” Mr. Pal indicated communities, social tokens, and NFTs outside of the art market as his focus areas.