Thoughts on Tokens
Balaji S. Srinivasan

What I don’t get: If tokens are API keys, why do token prices increase by +1.000% in such a short time? Compare that with AWS services; the price people would be willing to pay to have ‘access’ to AWS would not increase by 1.000% in the same time period. Ultimately the token should reflect the value of the digital product. But the real value lies in the underlying company holding the IP in the products which generate exclusive cashflow. I still think most people mix up tokens with equity and hope to participate in an exit/dividend case. As tokens in most cases have no exit/dividend participation, investors behave altruistically supporting new cool technologies. Which is nice for a better world, however without any real return probably not a good investment. Or what do I get wrong?

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