How is tokenization affecting the over all price level of cryptocurrency? - page 2.

ralle14

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Quote from: Hannahanto on March 18, 2019, 04:16:58 PM

The investment gets split into new tokens. I feel this is the reason behind coins having less demand and less value. The current market would be another reason behind token and listed coins having less value. The team should the pillar working behind to increase any token values.

They have less demand and value is because there's better cryptocurrency that's already used by the majority. They're forcing their own tokens when it's not needed.

The team alone can't stop their token from losing value because there are different reasons for the price go down. Making slight changes won't cut it their investors controls the value not them.

ecnalubma

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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.

CryptopreneurBrainboss

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eXch.cx - Automatic crypto Swap Exchange.

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.

Crypdon

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The addition of too many tokens means that the entire crypto market is diluted with shitcoins. This brings down the price of bitcoin as money is going elsewhere when it should be into bitcoin and ethereum instead

Hannahanto

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Quote from: Fabguy on March 18, 2019, 12:00:35 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 investment gets split into new tokens. I feel this is the reason behind coins having less demand and less value. The current market would be another reason behind token and listed coins having less value. The team should the pillar working behind to increase any token values.

MakeMoneyBtc

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Quote from: Fabguy on March 18, 2019, 12:00:35 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 fact that almost everyone could create a token in just a few hours is definitely not doing anything good for the cryptocurrency market and thats because 90% of tokens created are useless. Think is tokenization would have been available only for certain businesses and projects that are checked before by a commision. On the market we would find only good tokens that were created with a purpose and the price of whole cryptocurrency market would be even higher than it is now with all this fake coins existing. But this scenario is something that seem impossible to happen , at least not in the near future

Virtual miner

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Tokenization is harmless if we look at it as an easiness to create new tokens. But it becomes pretty bad in the way that when new tokens emerge into the system and people get pretty excited about it. They invest heavily in the crowdsale and later on the project as a whole turns out to be a wholesome scam. This creates a fear in the minds of investors regarding not only the tokens but towards the cryptocurrrency system as whole. This fear decreases reputation and trust of the crypto world and therefore ultimately reduces the overall pricing too. Not only this another issue is the past tokens performance. Not even a single token comes in my mind which has completed even 40% of the promises made by them in their whitepaper. All they are being used for so far is price manipulation and trading.

vv181

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I believe the correlation between cryptocurrencies vastly popping out and the market price has a small impact. The market purely based supply and demand, and increasing cryptocurrencies fork are having zero effect on them. Mostly because those projects are not having real value and real-life usage.

There is somehow become the norm for a scammer to create an ICO over and over again to deceive people. I'm started to think that it is because the perspective people have on cryptocurrencies volatility markets, so they thought they able to get rich overnight.

Reid

hero member

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It is the division of investment.

Look at all of that tokens that is being created and then being input as a new ICO token.
Even though they do not have the good project there are still buyers who will risk something to them.
Also, even if those are just hundreds of dollars or even .1 ETH was bought in exchange for token that is still investment.
Imagine if all of those small investment could have been in bitcoin. We wont be seeing this small price by now.

alisafidel58

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Quote from: Fabguy on March 18, 2019, 12:00:35 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?

It is because of the demand and progress.

Demand : When a cryptocurrency has so may demand in trade and volumes its price will move and vise versa.
Progress : If the developer stop its progress into achieving its roadmap then investors and traders might lose interest and leave the coin thus making it less valuable

avikz

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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!

Fabguy

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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.

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