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Written by Ramsey Brown.
Cryptocurrency is a craze that is here to stay. In fact, the crypto-hype is only continuing to grow as more and more people are beginning to realize the true potential and possibilities that live on the Blockchain.
Creators have discovered new ways to monetize their skills and services, all while maintaining artistic control and ownership of their assets. We’ve all heard about the many musicians, celebrities, and companies hopping on the NFT bandwagon within the past few years, proving to the world how lucrative and boundless the digital asset market is.
After NFTs, the next big innovation that the crypto space has brought forth is social tokens. Social tokens are a form of digital ownership, secured by blockchain, which allows for creators, influencers, and/or brands to connect with their fans and monetize experiences or services.
But what is the difference between social tokens and NFTs? How do they work and what is their true value? Are social tokens just another crypto fad, or is it the future of the music and entertainment industry?
In this article, we are going to answer all of these questions — clearly explaining everything there is to know about social tokens. Omari MC is a pioneering leader in social tokens. As the FIRST music marketing agency to have our own social coin, we feel confident in sharing the most accurate and up-to-date information with you.
Social tokens allow creators, influencers, athletes, musicians, brands, and more to launch their own form of cryptocurrency to monetize and multiply their audience. These tokens are decentralized and secured by blockchain. They are constructed on the same model as common cryptocurrencies like Bitcoin or Ethereum.
You may have heard several terms being tossed around like social token, creator coin, and community tokens — these names all are interchangeable and essentially mean the same thing.
With social tokens, creators have a new opportunity to monetize content while fans can participate in their economy and benefit from their rise in popularity. These tokens are created as a means to gain access to a community. They are similar to membership or VIP programs but based on the blockchain.
The dynamic is mutually beneficial: creators profit from fans buying their coins, and fans get access to special content and experiences. Because only a limited number of tokens exist, rising demand increases their value.
The creator can add benefits for community members, attracting yet more fans. As the value of the tokens’ grows, the creator can ultimately use them as a form of compensation.
Social tokens and NFTs are meant to complement each other, with the social token being the basis of the entire community. The NFT can be used as a layer on top of the social token.
Let's say your favorite musician launches a social token. We'll call it $MUSIC coin. If fans own music coin, they can get access to private Discord channels, meet-and-greet opportunities, exclusive merch, ticket raffles for concerts, etc.
$MUSIC coin could also sell NFTs that give rights to song royalties. They could make their NFTs exclusively available to buy in $MUSIC coin rather than buying in $ETH, $SOL, $MATIC, etc.
In this way, fans who aren't able to buy the NFT can still benefit from owning $MUSIC coin, but the fans who buy the NFT can even more benefits.
The main difference between social tokens and NFTs is that NFTs monetize a digital creation such as artwork or music, while social tokens would be more appropriate to monetize the creator themselves. NFTs can be used to monetize digital goods, while social tokens can monetize services or experiences.
Along with musicians, many athletes, brands, personalities, entrepreneurs, and others are beginning to introduce social tokens into their fanbase and communities.
Social tokens are made and used for three main purposes: access, exchange and investment. We’ll look at some examples of this below:
Access: Fans may simply buy tokens for the access they provide. For example, let’s discuss our very own $OMARI coin launched on the Rally network. When fans purchase $OMARI coin, ownership of the coin provides them with benefits such as marketing courses provided by Omari MC, private marketing chats, access to $RLY rewards, NFTs, and more that are only available through the $OMARI coin.
Exchange: Creator coins can be used as a medium of exchange. Instead of using fiat currency to pay for Omari MC marketing and promotion services, fans can opt to pay using $OMARI coin instead. Not only will this save you money on debit/credit card fees, but you also receive our in-depth creator coin & NFT course INCLUDED with your promo packages by purchasing them with $OMARI coin.
Investment: With the token supplies limited, rising demand increases their value. Fans can redeem coins, treating them as an investment (although a risky one) and creators can eventually take distributions to augment their income. To note, $OMARI is not considered an investment coin. The primary purpose of the coin is to provide exclusive access to parts of the Omari brand.
Social tokens allow content creators to engage with their fans more closely than ever before.
They have massive potential to redefine the way companies can generate targeted business opportunities by building a decentralized and secure ecosystem that caters to only their genuine customers or fans.
Since social tokens are built over blockchain, it is impossible for fraudulent transactions when it comes to token ownership.
Social tokens have better, more personalized incentives than conventional reward points or membership schemes.
They help encourage word-of-mouth marketing and genuine customer loyalty, even before people buy your products or services.
Now that you have a basic understanding of social tokens and how creator coins work, you may be interested in learning even more about this revolutionary tokenized economy.
Luckily for you, the team at Omari MC has launched our very own website for all things social token-related. At Social Token News, we provide everything from the latest social token and crypto advancements, fundamentals of buying and selling coins, how-to guides for marketing your own social token, crypto or Web 3 projects, in-depth educational YouTube videos, token FAQs — even free coin giveaways, and much more!
To stay up on the latest NFT, Crypto, Social Token, and Web 3.0 action, check out Social Token News and follow us through one of our social channels below:
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