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sterlacci.eth đź—˝
@sterlacci
did some writing and ended up making myself pretty bullish that @zora is on the right track. haven’t posted on fc in a while so lmk if there is a better channel/format Crypto is very close to its mainstream breakthrough and it’s clear to almost everyone that the killer use case is tokens. The challenge is conveying to the average person what tokens are and why they are valuable. Currently there’s a narrative barbell of tokens. On one end we have magic internet money. On the other end we have internet capital markets.
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sterlacci.eth đź—˝
@sterlacci
Magic Internet Money is the idea that tokens have some inarticulable value. It’s usually explained as some combination of attention/community/endowment effect. The main element of this distills down to there is some base motivation to buying/owning tokens and those that can suspend disbelief are able to participate. The main proponent of this school of thought right now is @zora pushing people to “just coin” their images posts whatever. This is a natural progression of what we have seen in memecoins and NFTs. There is inherently something that gives these things value, and even though the nft and memecoin frenzies have subsided that doesn’t mean that they didn’t/don’t have an intrinsic value. .
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sterlacci.eth đź—˝
@sterlacci
Internet Capital Markets is conversely the thought that tokens need a very tangible value. Be it cash flows, rev share or access to some underlying asset with “real value” . These tokens are viewed as financial assets where value can be mathematically deduced. While these tokens may get swept up in market irrationality they do have some underlying fundamentals. Defi summer was peak irrationality for these types of tokens and while many of these were held up by pure speculation, APY/TVL and the like were real (unsustainable) fundamentals that gave these tokens value. Most tokens by total market value would sit in this bucket, each category has different fundamentals and there is an argument that many of these fundamentals are as worthless as the defi summer ones, but none the less people understand that L1, Infra, and RWA are valuable because value will (maybe) flow to them in the future.
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