The Rise And Rise Of Social/Community Cryptocurrency Projects

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The cryptocurrency world has witnessed a massive change in the types of assets as technology and adoption grows. The growth of non-fungible tokens (NFTs) and decentralized finance (DeFi) ecosystems has been nothing short of incredible over the past year. However, the growth of Dogecoin (DOGE) has lit up the cryptocurrency field – with influences from Elon Musk and the community causing the wild surge in 2021.

Despite offering little in utility for their users and majorly being a joke (meme) coin, Dogecoin has witnessed an astonishing 3400% increase in price year-to-date. Key to this rise is the community built around the eighth largest token and its “leader” Elon Musk.

Look at Bitcoin while it was starting in 2009. A community of a few dedicated developers and users worked on the crypto growing it to what it is today. They built protocols around it, ways to store it, interact with it, upgraded the security… and … perhaps most importantly they shared it. The utility of BTC is unquestionable in that it offers financial freedom to the underbanked and unbanked persons. However, without the community around it, it is very likely it could not be the trillion-dollar asset it is today.

Across the cryptocurrency world, successful projects mainly bank on their community to succeed and gain adoption. Many projects – despite offering excellent and innovative technical aspects – have failed because their communities were toxic, unwelcoming or unfriendly. Others had weak and greedy leaders with the sole purpose to scam or ‘rug pull’ other community members hence driving off any new investors.

In short, projects that succeed realize the value of building a community around their goals and innovations, molding their creations to support and reward those who participate and co-create the community.

The Holy Grail Of Crypto Projects

Take a look at DOGE and you’ll definitely notice the power of a community. While it’s not the ideal utility token, it has started off a wave of “community or social tokens” which are starting to take over the crypto space by storm.

These types of tokens aim to bring the community together – whether by making it fun, providing safety, or rewarding those who believe in the project. Unlike Dogecoin, these developers of these community tokens build the tokens for the long term, input utility in them, and reward the users.

One project, Myōbu, is leading the social token world by creating a strong community around its project. Users on the platform are offered tokens intending to create events, giveaways, games, programs, protocols, and systems that make it fun, useful, and rewarding for the users. With such utility and a strong community of fun-loving users and a family made up of competent developers will ensure the project wins in the long term – boosting its token value and adoption rates.

At the core, a crypto project can be analyzed in four major steps to conclude if it will be a winner in the long run. First, check if the project is designed for the wellbeing of the community that supports it. Secondly, is the community welcoming, fun and makes you feel part of it? Third, is the project built to reward the users and community in general, and finally, does the project offer utility other than a pump and dump scheme?

If it ticks all the boxes, you are in for a ride to the moon alongside the community!

Image Sourced from BTC Peers

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.