Token valuation: The misunderstood importance of token economics (or why XRP is worthless)

Jose Maria Macedo
May 13, 2018 · 13 min read
Big piece of a small pie: Value is created through revenue and captured through profit. Whereas all US airlines put together created much more value than google, they were 100x worse at capturing that value and their market cap (valuation) was thus only a quarter of Google’s.
An example of a medium of exchange token is casino chips which are used as currency which can only be used to pay for gambling at the casino.
Store credit such as Sainsbury’s nectar points is another example of a utility token which can only be used to pay for goods at Sainsbury’s.
Sentinel Chain seeks to use RFID chips to register livestock to the blockchain and allow the unbanked in developing countries to use their livestock as loan collateral, turning “dead capital” into a fungible asset.

Jose Maria Macedo

Written by

Head of Advisory @Amazix. Martial artist, investor and blockchain analyst. Former poker pro, Cofounder @KitchPack (now acquired), Kaizen Academy and CFPalace.

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