The cryptocurrency market has seen a downturn- a phase experts popularly call 'Bear Market' in 2018. It is what has characterised the crypto market all year long. Prices of crypto tokens sliding downward like an avalanche from the top of Everest. The market has seen big tokens like Bitcoin and Ethereum crash down in prices- Bitcoin dropped from its peep price of around $20K to less than seven thousand dollars. A price change many investors rue so much. Ethereum on the other hand tasted the dip as far below $200. But clearly, the market only indicates the fragility of the structure of most crypto tokens in circulation.
Cryptocurrency is a huge space and many projects are picking different use cases and certain industries to adopt blockchain technology. The problem is usually the token system of these projects. Most crypto tokens are utility tokens that are structured to thrive and increase in value only as the user base increases. This will only hurt the long term plans of such token if the expected utility rate isn't met.
Analysis of the market has shown that token value reduces drastically once they are listed on exchanges. A lot of token holders scare easily and head directly to exchanges to dump upon listing. The brutal devaluation of tokens is because no one want to keep a worthless asset in their portfolios. The market is only an aggregate of the transactions of various tokens in the crypto space and the value change of these tokens is to a great extend dependent on the utility structure of each token. Tokens designed to increase in value only by market dictations will surely face the cruel slide of the dip. It is important that projects design multiple utilities for their tokens and different means to ensure good token value.
There is a new blockchain application called LipChain which aims to create more than one utility for its token.
A Multi-Utility Token To Scale
LipChain application is built to accommodate contents related to surfing sport. The app is designed to take ads which generates revenue for the platform. Also the revenue from the ads is used to reward the content creators that post their stories on the application.
The current cryptocurrency market has shown that for a token to be successful and increase in value for a long yerm, it must have its own token economy. It's not enough to sit back and wait for users to hold the token and hope that the value increases over time. It is important to create a good token economy and support in order for tokens to have a long term value. LipChain has created a token with unique economy and support mechanism. As a multi-utility token, the LIPS token is created for enterprise use and not only for users to hold in other to increase its value.
One of the many utilities of the LIPS token is for advertisers. LIPS tokens will be used for advertising by sponsors on the LipChain application. Many enterprises are looking to support good projects and expand their enterprises through advertisements. Therefore a good token structured with multiple utilities will thrive well in this market. LIPS token model will see it scale the market very easily since its price support is based on transactional circulation of the tokens.
As a project that is focused on creating a community of surfers and integrating the blockchain technology to fairly reward content creators for sharing their surfing related stories and experiences through their contents, LipChain token system will hold value for all members of the community through the LipChain application. Not only is the LIPS token created to provide voting rights to the users, the token can also be used to get discounts.
LipChain project is coming in as a real disruptive force. The team is cored on utilising the decentralised and trustless benefit of the blockchain technology to create a flexible yet strong token that will scale on many levels. The modelled LIP token is a multi-utility token designed to effectively serve both individual user utilities and enterprise utilities.
Highlight
The LipChain project is demonstrating a clear example of how an app anchored on the blockchain can effectively create a strong token economy that will maintain an impressive long term value. The bear market is a proof of the vulnerability of most utility tokens. And an indication that a multi-utility token system is the new way to go.
Get more information about LipChain or read the official Whitepaper. The Twitter, Telegram and Facebook communities also contain more details about the project