
WHAT CAN BE TOKENIZED WILL BE TOKENIZED
CRYPTO
LIQUID, FUNGIBLE AND GLOBAL
FRICTIONLESS ECONOMY
Satoshi Nakamoto introduced IN 2009 Bitcoin (BTC) the first cryptocurrency. BTC is enabled by a distributed ledger and cryptography. The rules are described in the legendary whitepaper​. At the beginning, it was easy to be a part of this new infrastructure. Today, you can buy BTC either over the counter (OTC), at ATM's, at meetups, via credit card or at cryptoexchanges, CEX'es or DEX'es. This sparked imagination, who created new cryptocurrencies and use blockchain to develop new socio-ecosystems.
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The law knows three token classes: cryptocurrencies, utility tokens and asset-backed tokens. Tokens are enabled via smart contracts and distributed ledgers. Secured via cryptography.
The nature of these token classes are quite different. While cryptocurrencies are mainly used for payments or hedging against political and economical risks, utility tokens are often used for governance of blockchain-based socio-economic models and ecosystems. Asset-backed tokens, like stablecoins or synthetics, can represent any asset, and combine features from cryptocurrencies and utility tokens. Their big distinction is their regulation.
Token represent a new asset class, each with its own potential and risk profile. While they share many aspects like a distributed ledgers and crypto wallets, they have different purposes and are embraced by different consumer segments.
