{"id":246729,"date":"2022-07-05T05:00:01","date_gmt":"2022-07-05T04:00:01","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=246729"},"modified":"2022-07-05T03:08:30","modified_gmt":"2022-07-05T02:08:30","slug":"heres-how-utility-tokens-can-drive-crypto-adoption-higher","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/heres-how-utility-tokens-can-drive-crypto-adoption-higher\/","title":{"rendered":"Here’s how utility tokens can drive crypto adoption higher"},"content":{"rendered":"

TaschaLabs' founder Tascha recently reminded<\/a> the community about the potential of utility tokens and said they could emerge during the bear market and power crypto adoption further.<\/p>\n

She said:<\/p>\n

“Real businesses are only waking up to the power of tokenization. Death of speculation in bear mkt gives breathing room for real innovations in tokenization to happen.<\/p>\n

Companies w\/ viable products that manage to integrate utility tokens into existing biz model *early* will be handsomely rewarded, while driving crypto adoption forward.”<\/p><\/blockquote>\n

She separated utility tokens with precise usage from those that gave their holders a share of company profit and said the real power lies with those that provide clear usage.<\/p>\n

Where to incorporate utility tokens?<\/h2>\n

Loyalty programs with liquidity<\/h3>\n

The first way would be to enable the liquidation of loyalty points.<\/p>\n

In traditional businesses, loyalty points are collected on a personal level and reserved for the person's usage only. Users often can't sell or transfer them to somewhere else. Tokenizing a loyalty program would enable users to trade their loyalty points in a secondary market.<\/p>\n

The ability to cash out would motivate the users to earn loyalty points. It would make loyalty points more attractive, bringing user growth and more traffic from the existing users.<\/p>\n

Sign-up bonuses<\/h3>\n

Only companies with considerable equity can reserve millions for sign-up bonuses in the traditional market. Tokenizing the sign-up bonuses would allow any company to use this powerful marketing method without messing up their limited budgets.<\/p>\n

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But if signup bonus is in token form, it doesn\u2019t impact company\u2019s current cash position. Instead, tokens given out today subtract from tomorrow\u2019s revenue as users redeem tokens for company\u2019s products & services in future.<\/p>\n

— Tascha (@TaschaLabs) June 30, 2022<\/a><\/p><\/blockquote>\n