Real Vision CEO and macro guru Raoul Pal says that he’s identified which sector of the crypto market will infiltrate the mainstream next.
In a new interview on the Angelo Robles podcast, Pal says that social tokens, or crypto assets that act like equity for blockchain-based communities, will soon find themselves integrated across many popular industries, such as sports and music.
“Social tokens are a way to organize complex adaptive societies, i.e. big communities. [They] create a reward system and incentivization to drive network growth by being a good community member and creating value [for] the community.
The behavioral economics of a social token is extraordinarily powerful, and we are going to see this at scale across sports, music, guilds, skills, there [are] so many different use cases that we’re going to see this come into.”
According to Pal, it may not always be so clear which coins are considered “social tokens” as most crypto assets, including king crypto Bitcoin (BTC) and top altcoin Ethereum (ETH), can have growing economies built on top of them.
“Bored Ape Yacht Club, that’s basically a social token for Bored Ape Yacht Club owners. BTC is essentially a social token for people who have beliefs in Bitcoin. People don’t like to say that, but that’s really what these things are.
And then what happens with the social token [is] you can build an economy on top of it. Ethereum would be another one. So they are utility tokens in that respect.
They’re composable which means you can build stuff on top of it, but they [also] have a value to your community, and if your community is vibrant and growing then the value of social tokens can go up. It’s a very attractive way to build a layer of value above equity that doesn’t exist.”
As a result, the macro expert says that social tokens also serve as a way for big-name companies to create a distinctive brand.
“In terms of brand, you’re seeing Nike right now and Adidas moving into the NFT space. What is that all about? This is about the brand on a balance sheet right now [being] intangible. Once you digitize the brand – it becomes tangible. And that’s what these tokens do.”
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The post New ‘Extraordinarily Powerful’ Sector of Crypto Assets To Penetrate Multiple Industries: Macro Guru Raoul Pal appeared first on The Daily Hodl.
