If there is nothing backing these tokens, I fail to see what value they have?
There is demand in the market and that is what important. As long as there are people willing to buy the tokens, the token will have value. besides cryptocurrencies like Bitcoin, Ethereum and BNB have real-life uses, and these real-life uses also backed these cryptocurrencies.
Aside from that, a speculative market is pretty much popular among traders because they can take advantage of the volatility of these cryptocurrencies.
Right, as long as there are people willing to buy the token. But aside from popularity, what else determines their value if anything?
If polkadot generates revenues and becomes popular, it’s not like their token entitles me to ownership or future cash flows like stocks. If a company generates more profits and grows, it’s stock becomes worth more because it’s cash flows are worth more if they get bought, go private, or they have dividends.
But with tokens, it seems to be strictly a popularity contest without anything backing them. An uncoupling from the underlying software and applications other then the Name of the application such as polkadot. I know some tokens give you votes and others are used to pay fees on the networks.
It’s kind of like generating tokens called Cubs baseball team token and trading them on an exchange. But you don’t have ownership of the Cubs through the tokens or any other benefit if they do well other then popularity. Do I have this right?
