The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
Most coins have very low market caps and a quick glance at coinmarketcap will tell you that the top 10 coins have almost all the market share so the diluting effect of those coins is insignificant, the real problem with having so many coins is that people get confused about why we have so many and when they understand that the majority of them are scams this affects the confidence of investors in the market, which is huge because this slowdowns adoption and reduces the level of investment that comes to the market because investors are afraid of being scammed. 
Topic: How is tokenization affecting the over all price level of cryptocurrency? (Read 289 times)
March 28, 2019, 11:53:31 PM
March 28, 2019, 02:32:38 PM
To me tokenization have affected the price of most crypto due to the fact that if various platforms and companies have they own token it reduce the amount of transactions being carried out in the general ledger, because those investors and customers of those company with personal tokens will no longer use the original platform such as bitcoin and the rest and that will reduce the level of demand for bitcoin.
March 28, 2019, 11:42:16 AM
Tokenization will definitely effort the market price especially etherum got effected badly aspect there are many tokens launching in the market but at the same time some projects are a scam so real projects will survive in the bear market
March 21, 2019, 01:17:07 PM
I guess the easiness is not that issue, I think its the capability of making people believe in your project so easily is the issue.
I mean after all you can create a token in half an hour and present it to people and that is not good I agree but I have seen people go "this is a coin on sale and if you fund this I will buy myself a car" and people literally laughed at him and paid him money. That dude got like 200k, way more than a car worth of money (or a lambo), it was a "joke" coin that got like 200k dollars for it.
I understand that the ease of creating a token is bad but people funding stupid stuff like that is way worse problem at hand. We need to make sure there are less coins coming up everyday for sure but we need to make that with funding the good ones and not funding the bad ones, otherwise bad ones will see they will get funded anyway and create one.
I mean after all you can create a token in half an hour and present it to people and that is not good I agree but I have seen people go "this is a coin on sale and if you fund this I will buy myself a car" and people literally laughed at him and paid him money. That dude got like 200k, way more than a car worth of money (or a lambo), it was a "joke" coin that got like 200k dollars for it.
I understand that the ease of creating a token is bad but people funding stupid stuff like that is way worse problem at hand. We need to make sure there are less coins coming up everyday for sure but we need to make that with funding the good ones and not funding the bad ones, otherwise bad ones will see they will get funded anyway and create one.
March 21, 2019, 10:27:40 AM
Should creating tokens be made difficult then? This is why they are called tokens in the first place. Developers are creating products on existing platforms. It should be as easy as android developers build apps on Android operating system.. Some Apps could even be created in minutes on top of android but what matters is how useful they are and the effort put into creating them. Same is applicable to tokens.
March 21, 2019, 10:00:57 AM
Tokenization is a part of cryptocurrency, maybe it affects the price level of cryptocurrency defends on the volume of transactions. When the volume of transactions are high therefore it affects cryptocurrency price. Because cryptocurrency price is only base on the demand and supply. The more people demand on bitcoin the price also become higher..
March 21, 2019, 09:37:02 AM
The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
In so many ways other than one. In economics, the more you have plenty of product in the market, whether same product or optional product, the more the price collapses because value won't be placed on them. Again, some optional products are used as competition to the superior product or commodity.
This is a keen to what is happening in crypto. Bitcoin is known to be the most valued crypto but we now have many other thousand crypto that are in competition, some will never get into the top hundred coin but they are crypto. So, inferiority collapse a value product.
March 21, 2019, 06:18:15 AM
The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
Making tokens is indeed very booming in this market which can be divided into several places that can only make prices go down or difficult to rise with fast time because in every day the circulation of investment is very large but can not make prices go up, but return investors want the desired assets , but for a long time there will be tokens set aside because the appearance of a new token or switching to a coin that has a clearer advantage than others, it is already not good because the appearance on the market is not properly controlled. 
March 20, 2019, 03:28:00 PM
The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
The effect of those useless tokens were making the investors poor and the project team to be rich.Not all the tokens running on an existing blockchain was shit but most of them were just copy of other coin and some projects even copy the whitepaper as well so investors need to be more smarter if they want to make profits.
March 20, 2019, 10:44:50 AM
With many tokens emerging in this space, it is inevitable that they would take a part of the overall cryptocurrency market cap. With this, bitcoin's market dominance will slowly decrease as more tokens and coins emerge. Some people might take this decrease as a sign negatively and make the price also decrease in turn.
March 20, 2019, 06:25:50 AM
By the way of dividing the total investment into different assets. Crypto market is attracting billions of dollars every year but the presence of thousands of tokens in the market is actually doing more harm than good. Majority of the tokens have no value as majority of them are either scam or have no long term business goal. We are seeing hundreds of ICO popping up every month, but how many of them are actually succeeding? Almost no one! So all the investments made into those ICOs are going down into drain! If these investments were flowing into few major cryptos like bitcoin and ETH, that would have increased the demand as well as the price.
Tokenization is a good feature but this is being misused heavily! Result?? ICO market is loosing credibility as well as decreasing the credibility of the crypto market. So the loss is not only financial, you see!
Tokenization is a good feature but this is being misused heavily! Result?? ICO market is loosing credibility as well as decreasing the credibility of the crypto market. So the loss is not only financial, you see!
So what you are saying in essence is that lack of value from these projects render their tokens useless? I just want to understand your point more.
March 19, 2019, 05:13:37 PM
The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
The more token emergence would really affect price yet it would really divide the number of current investors on the entire market and also most tokens overall are complete trash which would result on losing out confidence on potential investors as well which in result wont really able
to maximize out the potential support to the better ones.
March 19, 2019, 04:38:17 PM
I don't think it divides the money as much as people think, I believe there is still people who get into bitcoin but just somehow moved towards other coins for the coins sake and got the money for it without diluting their investment. So, what I am trying to say, lets say someone has 1000 dollars in bitcoin but sees a new coin and puts 100 into it, they do not put the 100 from bitcoin, they probably put a new 100 into it, so instead of having 900 bitcoin to 100 new coin they have 1000 in bitcoin and 100 in new coin.
Obviously, it is not always the case but I feel like that is most of the time what happens. That is why I feel like if you delete all coins above top 100 coin marketcap and put all the money into the top 100, you will definitely have top 100 coins going up but most people will withdraw to fiat because their favorite coins got deleted.
Obviously, it is not always the case but I feel like that is most of the time what happens. That is why I feel like if you delete all coins above top 100 coin marketcap and put all the money into the top 100, you will definitely have top 100 coins going up but most people will withdraw to fiat because their favorite coins got deleted.
March 19, 2019, 11:37:51 AM
this "eagerness" that you are talking about has only been all about making money the easy way and lots of it. if you look back at all these useless tokens that were created, which are a couple of thousands already, they have all been created so that their creators could make a large amount of money and abandon their token soon afterwards. so in reality they are not really "tokenizing" anything, they only create a useless token while using some buzzwords to fool people into investing in their crap 
March 19, 2019, 06:38:30 AM
The easiness of creating tokens on existing blockchain has seen the crypto market flooded with different crypto assets. This really have an effect on the price level of cryptocurrency but the confusing question is how? I will really appreciate a clarification on the connection between token emergence and the price level of cryptocurrency market.
I think that it depends on the nature of what is being tokenised.
If it's equity of a company simply issued in token form, then I certainly do not think that it's direct competition to a decentralised cryptocurrency like bitcoin, and thus, I do not believe that the value of other decentralised cryptocurrencies will be diluted as a result, especially when you consider the injections into the total market that would have resulted anyways.
If it's another new, decentralised crypto, or a fork of an existing crypto, it could possibly pose direction competition and as a result take value away from existing coins if it doesn't attract external investors. But TBH, the market as a whole right now is large enough that these little dents don't really matter.
March 19, 2019, 04:40:23 AM
There are many projects that present a great idea for development and they ask for funding. However, they declare that they cannot continue with that due to some problems that they are facing.
So, what do you think is going to happen with that? People who trusted their money to this team and thought that they are going to have a profit, they start selling and they probably lose their faith in the cryptocurrency market, as they lost money for it with nothing as a return.
So, what do you think is going to happen with that? People who trusted their money to this team and thought that they are going to have a profit, they start selling and they probably lose their faith in the cryptocurrency market, as they lost money for it with nothing as a return.
March 19, 2019, 04:36:42 AM
Let me use an illustration to make you understand better. Lets say you have an Apple (blockchain and it's coin) now with that Apple plus others ingredients (blockchain improvement) you produce an Apple juice (New token based on the previous blockchain) then you place the Apple and Apple juice to sell in the market (exchange) there are possiblity potential customers (investors) will choose any of the two sampled goods to buy therefore dividing their money between the two goods and this will directly affect the price of the Apple since the Apple juice (new token created on it's blockchain) will share the investors capital unlike if only Apple was listed, all the investor capital would had gone it's way.
I beg to a little bit disagree. It won't split if I do not like to buy apple but just an apple juice. Being an investor I have the option to invest where I think I have the advantage. It doesn't mean to affect the price because there are two different products. The competition goes only if there are two same product and you have the advantage to offer less price because it is the same. In this example these two differ and I see no competition so the price should still be the same. 
March 19, 2019, 04:18:06 AM
The only thing that I can find is that all those shitty tokens, that are created on Ethereum blockchain use gas for transactions and just spamming the blockchain while they don't have any serious value. This issue is increasing ETH transaction fees and making ETH and ethereum based tokens less attractive.
Luckily all those garbage tokens have a pretty low volume and don't have much influence so we shouldn't worry about that.
Luckily all those garbage tokens have a pretty low volume and don't have much influence so we shouldn't worry about that.
March 19, 2019, 03:18:41 AM
By the way of dividing the total investment into different assets. Crypto market is attracting billions of dollars every year but the presence of thousands of tokens in the market is actually doing more harm than good.
Maybe more precisely is the killer of bitcoin and ethereum. Because, since the emergence of hundreds of ICOs in enlivening the crypto market, the adverse effects directly worsened the market conditions although the initial decline was slow, however the tragedy of falling prices for bitcoin and other cryptos we can still feel until now. So from that I assume, there is no best innovation other than bitcoin and ethereum, even though ethereum is at least considered a bitcoin killer.
March 19, 2019, 12:24:08 AM
I believe tokenizing somehow drive Bitcoin and crypto prices due to the demand. It has direct or indirect effects, the increasing numbers of cryptocurrencies are likely to happen due to blockchain trend but I believe the increasing value of crypto is not the real cause that makes most tokens almost no value but once the projects deliver their products and attract investors they can easily rise from ashes.
right, here the quality of the token becomes a necessity in order to survive the cryptocurrency, by having a function and needed by many people it will certainly make these tokens shine and host on bitcoin Jump to: