More on Society & Culture
Isaiah McCall
3 years ago
Is TikTok slowly destroying a new generation?
It's kids' digital crack
TikTok is a destructive social media platform.
The interface shortens attention spans and dopamine receptors.
TikTok shares more data than other apps.
Seeing an endless stream of dancing teens on my glowing box makes me feel like a Blade Runner extra.
TikTok did in one year what MTV, Hollywood, and Warner Music tried to do in 20 years. TikTok has psychotized the two-thirds of society Aldous Huxley said were hypnotizable.
Millions of people, mostly kids, are addicted to learning a new dance, lip-sync, or prank, and those who best dramatize this collective improvisation get likes, comments, and shares.
TikTok is a great app. So what?
The Commercial Magnifying Glass TikTok made me realize my generation's time was up and the teenage Zoomers were the target.
I told my 14-year-old sister, "Enjoy your time under the commercial magnifying glass."
TikTok sells your every move, gesture, and thought. Data is the new oil. If you tell someone, they'll say, "Yeah, they collect data, but who cares? I have nothing to hide."
It's a George Orwell novel's beginning. Look up Big Brother Award winners to see if TikTok won.
TikTok shares your data more than any other social media app, and where it goes is unclear. TikTok uses third-party trackers to monitor your activity after you leave the app.
Consumers can't see what data is shared or how it will be used. — Genius URL
32.5 percent of Tiktok's users are 10 to 19 and 29.5% are 20 to 29.
TikTok is the greatest digital marketing opportunity in history, and they'll use it to sell you things, track you, and control your thoughts. Any of its users will tell you, "I don't care, I just want to be famous."
TikTok manufactures mental illness
TikTok's effect on dopamine and the brain is absurd. Dopamine controls the brain's pleasure and reward centers. It's like a switch that tells your brain "this feels good, repeat."
Dr. Julie Albright, a digital culture and communication sociologist, said TikTok users are "carried away by dopamine." It's hypnotic, you'll keep watching."
TikTok constantly releases dopamine. A guy on TikTok recently said he didn't like books because they were slow and boring.
The US didn't ban Tiktok.
Biden and Trump agree on bad things. Both agree that TikTok threatens national security and children's mental health.
The Chinese Communist Party owns and operates TikTok, but that's not its only problem.
There’s borderline child porn on TikTok
It's unsafe for children and violated COPPA.
It's also Chinese spyware. I'm not a Trump supporter, but I was glad he wanted TikTok regulated and disappointed when he failed.
Full-on internet censorship is rare outside of China, so banning it may be excessive. US should regulate TikTok more.
We must reject a low-quality present for a high-quality future.
TikTok vs YouTube
People got mad when I wrote about YouTube's death.
They didn't like when I said TikTok was YouTube's first real challenger.
Indeed. TikTok is the fastest-growing social network. In three years, the Chinese social media app TikTok has gained over 1 billion active users. In the first quarter of 2020, it had the most downloads of any app in a single quarter.
TikTok is the perfect social media app in many ways. It's brief and direct.
Can you believe they had a YouTube vs TikTok boxing match? We are doomed as a species.
YouTube hosts my favorite videos. That’s why I use it. That’s why you use it. New users expect more. They want something quicker, more addictive.
TikTok's impact on other social media platforms frustrates me. YouTube copied TikTok to compete.
It's all about short, addictive content.
I'll admit I'm probably wrong about TikTok. My friend says his feed is full of videos about food, cute animals, book recommendations, and hot lesbians.
Whatever.
TikTok makes us bad
TikTok is the opposite of what the Ancient Greeks believed about wisdom.
It encourages people to be fake. It's like a never-ending costume party where everyone competes.
It does not mean that Gen Z is doomed.
They could be the saviors of the world for all I know.
TikTok feels like a step towards Mike Judge's "Idiocracy," where the average person is a pleasure-seeking moron.
Hudson Rennie
3 years ago
Meet the $5 million monthly controversy-selling King of Toxic Masculinity.
Trigger warning — Andrew Tate is running a genius marketing campaign
Andrew Tate is a 2022 internet celebrity.
Kickboxing world champion became rich playboy with controversial views on gender roles.
Andrew's get-rich-quick scheme isn't new. His social media popularity is impressive.
He’s currently running one of the most genius marketing campaigns in history.
He pulls society's pendulum away from diversity and inclusion and toward diversion and exclusion. He's unstoppable.
Here’s everything you need to know about Andrew Tate. And how he’s playing chess while the world plays checkers.
Cobra Tate is the name he goes by.
American-born, English-raised entrepreneur Andrew Tate lives in Romania.
Romania? Says Andrew,
“I prefer a country in which corruption is available to everyone.”
Andrew was a professional kickboxer with the ring moniker Cobra before starting Hustlers University.
Before that, he liked chess and worshipped his father.
Emory Andrew Tate III is named after his grandmaster chess player father.
Emory was the first black-American chess champion. He was military, martial arts-trained, and multilingual. A superhuman.
He lived in his car to make ends meet.
Andrew and Tristan relocated to England with their mother when their parents split.
It was there that Andrew began his climb toward becoming one of the internet’s greatest villains.
Andrew fell in love with kickboxing.
Andrew spent his 20s as a professional kickboxer and reality TV star, featuring on Big Brother UK and The Ultimate Traveller.
These 3 incidents, along with a chip on his shoulder, foreshadowed Andrews' social media breakthrough.
Chess
Combat sports
Reality television
A dangerous trio.
Andrew started making money online after quitting kickboxing in 2017 due to an eye issue.
Andrew didn't suddenly become popular.
Andrew's web work started going viral in 2022.
Due to his contentious views on patriarchy and gender norms, he's labeled the King of Toxic Masculinity. His most contentious views (trigger warning):
“Women are intrinsically lazy.”
“Female promiscuity is disgusting.”
“Women shouldn’t drive cars or fly planes.”
“A lot of the world’s problems would be solved if women had their body count tattooed on their foreheads.”
Andrew's two main beliefs are:
“These are my personal opinions based on my experiences.”
2. “I believe men are better at some things and women are better at some things. We are not equal.”
Andrew intentionally offends.
Andrew's thoughts began circulating online in 2022.
In July 2022, he was one of the most Googled humans, surpassing:
Joe Biden
Donald Trump
Kim Kardashian
Andrews' rise is a mystery since no one can censure or suppress him. This is largely because Andrew nor his team post his clips.
But more on that later.
Andrew's path to wealth.
Andrew Tate is a self-made millionaire. His morality is uncertain.
Andrew and Tristan needed money soon after retiring from kickboxing.
“I owed some money to some dangerous people. I had $70K and needed $100K to stay alive.”
Andrews lost $20K on roulette at a local casino.
Andrew had one week to make $50,000, so he started planning. Andrew locked himself in a chamber like Thomas Edison to solve an energy dilemma.
He listed his assets.
Physical strength (but couldn’t fight)
a BMW (worth around $20K)
Intelligence (but no outlet)
A lightbulb.
He had an epiphany after viewing a webcam ad. He sought aid from women, ironically. His 5 international girlfriends are assets.
Then, a lightbulb.
Andrew and Tristan messaged and flew 7 women to a posh restaurant. Selling desperation masked as opportunity, Andrew pitched his master plan:
A webcam business — with a 50/50 revenue split.
5 women left.
2 stayed.
Andrew Tate, a broke kickboxer, became Top G, Cobra Tate.
The business model was simple — yet sad.
Andrew's girlfriends moved in with him and spoke online for 15+ hours a day. Andrew handled ads and equipment as the women posed.
Andrew eventually took over their keyboards, believing he knew what men wanted more than women.
Andrew detailed on the Full Send Podcast how he emotionally manipulated men for millions. They sold houses, automobiles, and life savings to fuel their companionship addiction.
When asked if he felt bad, Andrew said,
“F*ck no.“
Andrew and Tristan wiped off debts, hired workers, and diversified.
Tristan supervised OnlyFans models.
Andrew bought Romanian casinos and MMA league RXF (Real Xtreme Fighting).
Pandemic struck suddenly.
Andrew couldn't run his 2 businesses without a plan. Another easy moneymaker.
He banked on Hustlers University.
The actual cause of Andrew's ubiquity.
On a Your Mom’s House episode Andrew's 4 main revenue sources:
Hustler’s University
2. Owning casinos in Romania
3. Owning 10% of the Romanian MMA league “RXF”
4. “The War Room” — a society of rich and powerful men
When the pandemic hit, 3/4 became inoperable.
So he expanded Hustlers University.
But what is Hustler’s University?
Andrew says Hustlers University teaches 18 wealth-building tactics online. Examples:
Real estate
Copywriting
Amazon FBA
Dropshipping
Flipping Cryptos
How to swiftly become wealthy.
Lessons are imprecise, rudimentary, and macro-focused, say reviews. Invest wisely, etc. Everything is free online.
You pay for community. One unique income stream.
The only money-making mechanism that keeps the course from being a scam.
The truth is, many of Andrew’s students are actually making money. Maybe not from the free YouTube knowledge Andrew and his professors teach in the course, but through Hustler’s University’s affiliate program.
Affiliates earn 10% commission for each new student = $5.
Students can earn $10 for each new referral in the first two months.
Andrew earns $50 per membership per month.
This affiliate program isn’t anything special — in fact, it’s on the lower end of affiliate payouts. Normally, it wouldn’t be very lucrative.
But it has one secret weapon— Andrew and his viral opinions.
Andrew is viral. Andrew went on a media tour in January 2022 after appearing on Your Mom's House.
And many, many more…
He chatted with Twitch streamers. Hustlers University wanted more controversy (and clips).
Here’s the strategy behind Hustler’s University that has (allegedly) earned students upwards of $10K per month:
Make a social media profile with Andrew Tates' name and photo.
Post any of the online videos of Andrews that have gone viral.
Include a referral link in your bio.
Effectively simple.
Andrew's controversy attracts additional students. More student clips circulate as more join. Andrew's students earn more and promote the product as he goes viral.
A brilliant plan that's functioning.
At the beginning of his media tour, Hustler’s University had 5,000 students. 6 months in, and he now has over 100,000.
One income stream generates $5 million every month.
Andrew's approach is not new.
But it is different.
In the early 2010s, Tai Lopez dominated the internet.
His viral video showed his house.
“Here in my garage. Just bought this new Lamborghini.”
Tais' marketing focused on intellect, not strength, power, and wealth to attract women.
How reading quicker leads to financial freedom in 67 steps.
Years later, it was revealed that Tai Lopez rented the mansion and Lamborghini as a marketing ploy to build social proof. Meanwhile, he was living in his friend’s trailer.
Faked success is an old tactic.
Andrew is doing something similar. But with one major distinction.
Andrew outsources his virality — making him nearly impossible to cancel.
In 2022, authorities searched Andrews' estate over human trafficking suspicions. Investigation continues despite withdrawn charges.
Andrew's divisive nature would normally get him fired. Andrew's enterprises and celebrity don't rely on social media.
He doesn't promote or pay for ads. Instead, he encourages his students and anyone wishing to get rich quick to advertise his work.
Because everything goes through his affiliate program. Old saying:
“All publicity is good publicity.”
Final thoughts: it’s ok to feel triggered.
Tate is divisive.
His emotionally charged words are human nature. Andrews created the controversy.
It's non-personal.
His opinions are those of one person. Not world nor generational opinion.
Briefly:
It's easy to understand why Andrews' face is ubiquitous. Money.
The world wide web is a chessboard. Misdirection is part of it.
It’s not personal, it’s business.
Controversy sells
Sometimes understanding the ‘why’, can help you deal with the ‘what.’
Liz Martin
3 years ago
What Motivated Amazon to Spend $1 Billion for The Rings of Power?
Amazon's Rings of Power is the most costly TV series ever made. This is merely a down payment towards Amazon's grand goal.
Here's a video:
Amazon bought J.R.R. Tolkien's fantasy novels for $250 million in 2017. This agreement allows Amazon to create a Tolkien series for Prime Video.
The business spent years developing and constructing a Lord of the Rings prequel. Rings of Power premiered on September 2, 2022.
It drew 25 million global viewers in 24 hours. Prime Video's biggest debut.
An Exorbitant Budget
The most expensive. First season cost $750 million to $1 billion, making it the most costly TV show ever.
Jeff Bezos has spent years looking for the next Game of Thrones, a critically and commercially successful original series. Rings of Power could help.
Why would Amazon bet $1 billion on one series?
It's Not Just About the Streaming War
It's simple to assume Amazon just wants to win. Since 2018, the corporation has been fighting Hulu, Netflix, HBO, Apple, Disney, and NBC. Each wants your money, talent, and attention. Amazon's investment goes beyond rivalry.
Subscriptions Are the Bait
Audible, Amazon Music, and Prime Video are subscription services, although the company's fundamental business is retail. Amazon's online stores contribute over 50% of company revenue. Subscription services contribute 6.8%. The company's master plan depends on these subscriptions.
Streaming videos on Prime increases membership renewals. Free trial participants are more likely to join. Members buy twice as much as non-members.
Amazon Studios doesn't generate original programming to earn from Prime Video subscriptions. It aims to retain and attract clients.
Amazon can track what you watch and buy. Its algorithm recommends items and services. Mckinsey says you'll use more Amazon products, shop at Amazon stores, and watch Amazon entertainment.
In 2015, the firm launched the first season of The Man in the High Castle, a dystopian alternate history TV series depicting a world ruled by Nazi Germany and Japan after World War II.
This $72 million production earned two Emmys. It garnered 1.15 million new Prime users globally.
When asked about his Hollywood investment, Bezos said, "A Golden Globe helps us sell more shoes."
Selling more footwear
Amazon secured a deal with DirecTV to air Thursday Night Football in restaurants and bars. First streaming service to have exclusive NFL games.
This isn't just about Thursday night football, says media analyst Ritchie Greenfield. This sells t-shirts. This may be a ticket. Amazon does more than stream games.
The Rings of Power isn't merely a production showcase, either. This sells Tolkien's fantasy novels such Lord of the Rings, The Hobbit, and The Silmarillion.
This tiny commitment keeps you in Amazon's ecosystem.
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Hannah Elliott
3 years ago
Pebble Beach Auto Auctions Set $469M Record
The world's most prestigious vintage vehicle show included amazing autos and record-breaking sums.
This 1932 Duesenberg J Figoni Sports Torpedo earned Best of Show in 2022.
David Paul Morris (DPM)/Bloomberg
2022 Pebble Beach Concours d'Elegance winner was a pre-war roadster.
Lee Anderson's 1932 Duesenberg J Figoni Sports Torpedo won Best of Show at Pebble Beach Golf Links near Carmel, Calif., on Sunday. First American win since 2013.
Sandra Button, chairperson of the annual concours, said the car, whose chassis and body had been separated for years, "marries American force with European style." "Its resurrection story is passionate."
Pebble Beach Concours d'Elegance Auction
Since 1950, the Pebble Beach Concours d'Elegance has welcomed the world's most costly collectable vehicles for a week of parties, auctions, rallies, and high-roller meetings. The cold, dreary weather highlighted the automobiles' stunning lines and hues.
DPM/Bloomberg
A visitor photographs a 1948 Ferrari 166 MM Touring Barchetta. This is one of 25 Ferraris manufactured in the years after World War II. First shown at the 1948 Turin Salon. Others finished Mille Miglia and Le Mans, which set the tone for Ferrari racing for years.
DPM/Bloomberg
This year's frontrunners were ultra-rare pre-war and post-war automobiles with long and difficult titles, such a 1937 Talbot-Lago T150C-SS Figoni & Falaschi Teardrop Coupe and a 1951 Talbot-Lago T26 Grand Sport Stabilimenti Farina Cabriolet.
The hefty, enormous coaches inspire visions of golden pasts when mysterious saloons swept over the road with otherworldly style, speed, and grace. Only the richest and most powerful people, like Indian maharaja and Hollywood stars, owned such vehicles.
Antonio Chopitea, a Peruvian sugar tycoon, ordered a new Duesenberg in Paris. Hemmings says the two-tone blue beauty was moved to the US and dismantled in the 1960s. Body and chassis were sold separately and rejoined decades later in a three-year, prize-winning restoration.
The concours is the highlight of Monterey Car Week, a five-day Super Bowl for car enthusiasts. Early events included Porsche and Ferrari displays, antique automobile races, and new-vehicle debuts. Many auto executives call Monterey Car Week the "new auto show."
Many visitors were drawn to the record-breaking auctions.
A 1969 Porsche 908/02 auctioned for $4.185 million. Flat-eight air-cooled engine, 90.6-inch wheelbase, 1,320-pound weight. Vic Elford, Richard Attwood, Rudi Lins, Gérard Larrousse, Kurt Ahrens Jr., Masten Gregory, and Pedro Rodriguez drove it, according to Gooding.
DPM/Bloomberg
The 1931 Bentley Eight Liter Sports Tourer doesn't meet its reserve. Gooding & Co., the official auction house of the concours, made more than $105 million and had an 82% sell-through rate. This powerful open-top tourer is one of W.O. Bentley's 100 automobiles. Only 80 remain.
DPM/Bloomberg
The final auction on Aug. 21 brought in $456.1 million, breaking the previous high of $394.48 million established in 2015 in Monterey. “The week put an exclamation point on what has been an exceptional year for the collector automobile market,” Hagerty analyst John Wiley said.
Many cars that go unsold at public auction are sold privately in the days after. After-sales pushed the week's haul to $469 million on Aug. 22, up 18.9% from 2015's record.
In today's currencies, 2015's record sales amount to $490 million, Wiley noted. The dollar is degrading faster than old autos.
Still, 113 million-dollar automobiles sold. The average car sale price was $583,211, up from $446,042 last year, while multimillion-dollar hammer prices made up around 75% of total sales.
Industry insiders and market gurus expected that stock market volatility, the crisis in Ukraine, and the dollar-euro exchange rate wouldn't influence the world's biggest spenders.
Classic.com's CEO said there's no hint of a recession in an e-mail. Big sales and crowds.
Ticket-holders wore huge hats, flowery skirts, and other Kentucky Derby-esque attire. Coffee, beverages, and food are extra.
DPM/Bloomberg
Mercedes-Benz 300 SL Gullwing, 1955. Mercedes produced the two-seat gullwing coupe from 1954–1957 and the roadster from 1957–1963. It was once West Germany's fastest and most powerful automobile. You'd be hard-pressed to locate one for less $1 million.
DPM/Bloomberg
1955 Ferrari 410 Sport sold for $22 million at RM Sotheby's. It sold a 1937 Mercedes-Benz 540K Sindelfingen Roadster for $9.9 million and a 1924 Hispano-Suiza H6C Transformable Torpedo for $9.245 million. The family-run mansion sold $221.7 million with a 90% sell-through rate, up from $147 million in 2021. This year, RM Sotheby's cars averaged $1.3 million.
Not everyone saw such great benefits.
Gooding & Co., the official auction house of the concours, made more than $105 million and had an 82% sell-through rate. 1937 Bugatti Type 57SC Atalante, 1990 Ferrari F40, and 1994 Bugatti EB110 Super Sport were top sellers.
The 1969 Autobianchi A112 Bertone. This idea two-seater became a Hot Wheels toy but was never produced. It has a four-speed manual drive and an inline-four mid-engine arrangement like the Lamborghini Miura.
DPM/Bloomberg
1956 Porsche 356 A Speedster at Gooding & Co. The Porsche 356 is a lightweight, rear-engine, rear-wheel drive vehicle that lacks driving power but is loved for its rounded, Beetle-like hardtop coupé and open-top versions.
DPM/Bloomberg
Mecum sold $50.8 million with a 64% sell-through rate, down from $53.8 million and 77% in 2021. Its top lot, a 1958 Ferrari 250 GT 'Tour de France' Alloy Coupe, sold for $2.86 million, but its average price was $174,016.
Bonhams had $27.8 million in sales with an 88% sell-through rate. The same sell-through generated $35.9 million in 2021.
Gooding & Co. and RM Sotheby's posted all 10 top sales, leaving Bonhams, Mecum, and Hagerty-owned Broad Arrow fighting for leftovers. Six of the top 10 sellers were Ferraris, which remain the gold standard for collectable automobiles. Their prices have grown over decades.
Classic.com's Calle claimed RM Sotheby's "stole the show," but "BroadArrow will be a force to reckon with."
Although pre-war cars were hot, '80s and '90s cars showed the most appreciation and attention. Generational transition and new buyer profile."
2022 Pebble Beach Concours d'Elegance judges inspect 1953 Siata 208. The rounded coupe was introduced at the 1952 Turin Auto Show in Italy and is one of 18 ever produced. It sports a 120hp Fiat engine, five-speed manual transmission, and alloy drum brakes. Owners liked their style, but not their reliability.
DPM/Bloomberg
The Czinger 21 CV Max at Pebble Beach. Monterey Car Week concentrates on historic and classic automobiles, but modern versions like this Czinger hypercar also showed.
DPM/Bloomberg
The 1932 Duesenberg J Figoni Sports Torpedo won Best in Show in 2022. Lee and Penny Anderson of Naples, Fla., own the once-separate-chassis-from-body automobile.
DPM/Bloomberg
Sam Hickmann
3 years ago
Token taxonomy: Utility vs Security vs NFT
Let's examine the differences between the three main token types and their functions.
As Ethereum grew, the term "token" became a catch-all term for all assets built on the Ethereum blockchain. However, different tokens were grouped based on their applications and features, causing some confusion. Let's examine the modification of three main token types: security, utility, and non-fungible.
Utility tokens
They provide a specific utility benefit (or a number of such). A utility token is similar to a casino chip, a table game ticket, or a voucher. Depending on the terms of issuing, they can be earned and used in various ways. A utility token is a type of token that represents a tool or mechanism required to use the application in question. Like a service, a utility token's price is determined by supply and demand. Tokens can also be used as a bonus or reward mechanism in decentralized systems: for example, if you like someone's work, give them an upvote and they get a certain number of tokens. This is a way for authors or creators to earn money indirectly.
The most common way to use a utility token is to pay with them instead of cash for discounted goods or services.
Utility tokens are the most widely used by blockchain companies. Most cryptocurrency exchanges accept fees in native utility tokens.
Utility tokens can also be used as a reward. Companies tokenize their loyalty programs so that points can be bought and sold on blockchain exchanges. These tokens are widely used in decentralized companies as a bonus system. You can use utility tokens to reward creators for their contributions to a platform, for example. It also allows members to exchange tokens for specific bonuses and rewards on your site.
Unlike security tokens, which are subject to legal restrictions, utility tokens can be freely traded.
Security tokens
Security tokens are essentially traditional securities like shares, bonds, and investment fund units in a crypto token form.
The key distinction is that security tokens are typically issued by private firms (rather than public companies) that are not listed on stock exchanges and in which you can not invest right now. Banks and large venture funds used to be the only sources of funding. A person could only invest in private firms if they had millions of dollars in their bank account. Privately issued security tokens outperform traditional public stocks in terms of yield. Private markets grew 50% faster than public markets over the last decade, according to McKinsey Private Equity Research.
A security token is a crypto token whose value is derived from an external asset or company. So it is governed as security (read about the Howey test further in this article). That is, an ownership token derives its value from the company's valuation, assets on the balance sheet, or dividends paid to token holders.
Why are Security Tokens Important?
Cryptocurrency is a lucrative investment. Choosing from thousands of crypto assets can mean the difference between millionaire and bankrupt. Without security tokens, crypto investing becomes riskier and generating long-term profits becomes difficult. These tokens have lower risk than other cryptocurrencies because they are backed by real assets or business cash flows. So having them helps to diversify a portfolio and preserve the return on investment in riskier assets.
Security tokens open up new funding avenues for businesses. As a result, investors can invest in high-profit businesses that are not listed on the stock exchange.
The distinction between utility and security tokens isn't as clear as it seems. However, this increases the risk for token issuers, especially in the USA. The Howey test is the main pillar regulating judicial precedent in this area.
What is a Howey Test?
An "investment contract" is determined by the Howey Test, a lawsuit settled by the US Supreme Court. If it does, it's a security and must be disclosed and registered under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If the SEC decides that a cryptocurrency token is a security, a slew of issues arise. In practice, this ensures that the SEC will decide when a token can be offered to US investors and if the project is required to file a registration statement with the SEC.
Due to the Howey test's extensive wording, most utility tokens will be classified as securities, even if not intended to be. Because of these restrictions, most ICOs are not available to US investors. When asked about ICOs in 2018, then-SEC Chairman Jay Clayton said they were securities. The given statement adds to the risk. If a company issues utility tokens without registering them as securities, the regulator may impose huge fines or even criminal charges.
What other documents regulate tokens?
Securities Act (1993) or Securities Exchange Act (1934) in the USA; MiFID directive and Prospectus Regulation in the EU. These laws require registering the placement of security tokens, limiting their transfer, but protecting investors.
Utility tokens have much less regulation. The Howey test determines whether a given utility token is a security. Tokens recognized as securities are now regulated as such. Having a legal opinion that your token isn't makes the implementation process much easier. Most countries don't have strict regulations regarding utility tokens except KYC (Know Your Client) and AML (Anti Money-Laundering).
As cryptocurrency and blockchain technologies evolve, more countries create UT regulations. If your company is based in the US, be aware of the Howey test and the Bank Secrecy Act. It classifies UTs and their issuance as money transmission services in most states, necessitating a license and strict regulations. Due to high regulatory demands, UT issuers try to avoid the United States as a whole. A new law separating utility tokens from bank secrecy act will be introduced in the near future, giving hope to American issuers.
The rest of the world has much simpler rules requiring issuers to create basic investor disclosures. For example, the latest European legislation (MiCA) allows businesses to issue utility tokens without regulator approval. They must also prepare a paper with all the necessary information for the investors.
A payment token is a utility token that is used to make a payment. They may be subject to electronic money laws.
Because non-fungible tokens are a new instrument, there is no regulating paper yet. However, if the NFT is fractionalized, the smaller tokens acquired may be seen as securities.
NFT Tokens
Collectible tokens are also known as non-fungible tokens. Their distinctive feature is that they denote unique items such as artwork, merch, or ranks. Unlike utility tokens, which are fungible, meaning that two of the same tokens are identical, NFTs represent a unit of possession that is strictly one of a kind. In a way, NFTs are like baseball cards, each one unique and valuable.
As for today, the most recognizable NFT function is to preserve the fact of possession. Owning an NFT with a particular gif, meme, or sketch does not transfer the intellectual right to the possessor, but is analogous to owning an original painting signed by the author.
Collectible tokens can also be used as digital souvenirs, so to say. Businesses can improve their brand image by issuing their own branded NFTs, which represent ranks or achievements within the corporate ecosystem. Gamifying business ecosystems would allow people to connect with a brand and feel part of a community.
Which type of tokens is right for you as a business to raise capital?
For most businesses, it's best to raise capital with security tokens by selling existing shares to global investors. Utility tokens aren't meant to increase in value over time, so leave them for gamification and community engagement. In a blockchain-based business, however, a utility token is often the lifeblood of the operation, and its appreciation potential is directly linked to the company's growth. You can issue multiple tokens at once, rather than just one type. It exposes you to various investors and maximizes the use of digital assets.
Which tokens should I buy?
There are no universally best tokens. Their volatility, industry, and risk-reward profile vary. This means evaluating tokens in relation to your overall portfolio and personal preferences: what industries do you understand best, what excites you, how do you approach taxes, and what is your planning horizon? To build a balanced portfolio, you need to know these factors.
Conclusion
The three most common types of tokens today are security, utility, and NFT. Security tokens represent stocks, mutual funds, and bonds. Utility tokens can be perceived as an inside-product "currency" or "ignition key" that grants you access to goods and services or empowers with other perks. NFTs are unique collectible units that identify you as the owner of something.
Rishi Dean
3 years ago
Coinbase's web3 app
Use popular Ethereum dapps with Coinbase’s new dapp wallet and browser
Tl;dr: This post highlights the ability to access web3 directly from your Coinbase app using our new dapp wallet and browser.
Decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) have gained popularity in the last year (DAOs). The total value locked (TVL) of DeFi investments on the Ethereum blockchain has grown to over $110B USD, while NFTs sales have grown to over $30B USD in the last 12 months (LTM). New innovative real-world applications are emerging every day.
Today, a small group of Coinbase app users can access Ethereum-based dapps. Buying NFTs on Coinbase NFT and OpenSea, trading on Uniswap and Sushiswap, and borrowing and lending on Curve and Compound are examples.
Our new dapp wallet and dapp browser enable you to access and explore web3 directly from your Coinbase app.
Web3 in the Coinbase app
Users can now access dapps without a recovery phrase. This innovative dapp wallet experience uses Multi-Party Computation (MPC) technology to secure your on-chain wallet. This wallet's design allows you and Coinbase to share the 'key.' If you lose access to your device, the key to your dapp wallet is still safe and Coinbase can help recover it.
Set up your new dapp wallet by clicking the "Browser" tab in the Android app's navigation bar. Once set up, the Coinbase app's new dapp browser lets you search, discover, and use Ethereum-based dapps.
Looking forward
We want to enable everyone to seamlessly and safely participate in web3, and today’s launch is another step on that journey. We're rolling out the new dapp wallet and browser in the US on Android first to a small subset of users and plan to expand soon. Stay tuned!