A social token (a.k.a. creator coins) is a form of cryptocurrency used to build communities and provide benefits to community members. Selling social tokens also generates revenue for the token creator.
The main way social tokens are used is for membership and reward programs. Think of social tokens as crypto-based frequent flyer programs.
There are two main types of social tokens:
1. Creator coins are created and used by content creators and usually sold (but sometimes given away} to the creator’s fans. Token holders receive benefits such as unique content, access to group chats, the ability to buy exclusive merchandise.
Many bands and musicians have creator coins that they sell to their fans. The coins generally grant access to online chats with the musicians, early access to new releases, discounts on merchandise, and often special seating sections at concerts.
Creator coins provide musicians with an efficient way to generate revenue while also providing benefits to their fans.
A wide variety of professionals have released creator coins.
For example, the well-known technology analyst Jerimiah Owyang has a creator coin (which we own).
We also own tokens from several other consultants and analysts. In all cases they provide coin holders exclusive content, discounts of various forms, and access to the analysts.
2. Community tokens are issued by a community and provide benefits and access to token holders, much like the creator coins.
The Friends With Benefits (FWB) community, for example, is a popular virtual community with Web 3.0 and crypto enthusiasts and has several thousand members. They have active online chats, education programs, social programs, and events. Think of FWB as Soho House without the house.
Anyone can join FWB, but you need to buy 75 $FWB tokens, which currently costs about $2500.
This is quite a bargain since only a couple of months ago, 75 $FWB would have cost closer to $8,000.
Like all cryptocurrencies, social token prices are volatile. And the recent bitcoin and cryto price swoon has also hit most social tokens.
But most people who buy social tokens aren't doing it to make money (although that is a nice potential side benefit). They buy tokens to be part of a community and access the associated benefits.
The why you should care about social tokens is straightforward.
Social tokens can be an efficient and effective way for creators, solopreneurs and SMBs to engage, build, reward, and monetize a community of fans and/or customers.
Because of this, we expect to see growing numbers of creators, solopreneurs, SMBs - and even large enterprises - develop and use social tokens to engage with their customers.
The short video below is from Rally, a leading social token minting service and marketplace. It describes the advantages of creator coins.