Cryptocurrency and Social Media have a long-standing relationship. Now, a new wave of crypto tokens are sweeping social media. After seeing a decline in the buzz around Bitcoin in 2017, a new technology is on the rise. You may have seen talk of next-gen tokens on various platforms. While similar to traditional cryptocurrencies, they are not the same. So, what exactly are those things?
What are next-gen tokens?
Next-gen tokens are a reinvention of traditional cryptocurrencies. Focused on using engagement and functionality to attract investor confidence, these tokens aim to steer away from the negative connotations of currencies like Bitcoin and Ripple. Now, there are even some new tokens backed with real assets. These were born out of the hope create a more stable online trading environment.
How do they work?
New social media platforms are popping up that actually rely on these tokens as part of their infrastructure. They are used to reward users for engagement. This means they can include a financial incentive for the user at no cost to the platform. For example, Sapien Network allows users to reward each other through the decentralized Ethereum blockchain. This is for their contributions to news stories shared with the platform. The mission statement says it all- to reward creators and champion truth over financial gain.
Why does this matter?
Cryptocurrencies on social media may only exist on obscure platforms, but their popularity is growing. While in its infancy now, this experimental model could become the norm for the most popular social media platforms. With a base of knowledge on next-gen tokens, you’ll be ahead the curve in your professional field. Watch out Facebook, Instagram and Twitter! Online currencies could be your future.