NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Crypto Bulls Rejoice: Congresswoman Confirms Powell’s Imminent Firing

Skycoin’s Free Internet Service Rewards and Empowers Netizens for Sharing

NewsBTC
NewsBTC
7 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Ninety percent of companies conducting initial coin offerings are expected to fail in the future. The often-cited statistic is no doubt intimidating to an investor in blockchain and cryptocurrency startups. Knowing why crypto projects will fail can help you invest your money more wisely in the crypto economy.

At this early stage, the majority of crypto failures are related to scams and hacking. As ICO startups move from concept into the commercial mode, more will fail owing to the lack of a viable business model. A major undoing will be the failure to develop a sustainable business model, according to Ethereum co-founder and crypto-economics expert Vitalik Buterin.

In the ICO fervor, many startups have forgotten the underlying philosophy of the crypto economy— to create a new form of economic power. Whether booking a holiday or a cargo shipment on a blockchain platform, a token economy should increase your ownership through incentives and rewards. By reinforcing participation in the internal economy, these tokens are key to creating sustainable demand, and thus productive value in the token.

Yet like in the gaming world, some reinforcement systems are duds and fail to keep us captivated.

Which token economies will be the next World of Warcraft?

A productive (versus speculative) tokenized economy should:

Spread Economic Power –Companies that spread economic power are more likely to outperform the market, if the history of the corporate world is any guide.  Spreading economic power is more than a social philosophy. It’s good business. Companies with a higher percentage of employee ownership enjoy higher productivity, profits, and stock prices. A key difference is crypto economies apply blockchain and cryptographic technology to decentralize and distribute ownership control.

Create Utility Value in Tokens — In economic power, however, not all tokens are the same. Over $3 billion in crypto tokens were issued in 2017. The level of potential economic ownership and incentive mechanisms vary greatly across these crypto startups. The basic functions of a token are to provide access to a platform, serve as escrow, provide a unit of payment, and distribute profits. Well-designed models use tokens in incentive and reward mechanisms that create sustainable demand within the ecosystem.

Increase Ownership Through Rewards and Incentives — A basic value proposition of all coins is the potential token appreciation created by increasing the number of participants and activity on the platform. Theoretically, economic rewards are at the core of the crypto economy. Bitcoin is minted in blocks by miners who donate computing power and electricity in exchange for rewards. However, in the productive economy, Bitcoin has little utility today. The cryptocurrency is primarily used for speculation.

Tokens being issued in ICOs, in contrast,  are primarily utility tokens used as the platform currency. In the crypto economy, in which users and investors are often, but not always, the same individuals, incentives create a virtuous investment cycle.

Take, for example, Skycoin. Its peer-to-peer free internet service, Skywire,  incentivizes users to share internet services. In exchange for forwarding traffic and sharing internet bandwidth, users are rewarded in SKY coin. Crucially, Skycoin has extended economic ownership to its platform development.

Apply Decentralized Development — Another important feature identified by Buterin yet often overlooked when assessing ICOs. Skycoin’s network has been developed by 80 software engineers working cooperatively over the Github. The pooled know-how has helped the free internet service leapfrog to a third generation cryptocurrency with unique features to preserve currency value. The Skycoin network—consisting of SkyWire, Skycoin and the Skycoin Ledger—runs on its own blockchain and cryptocurrency.

How to Get Skycoin

Unlike many completed ICOs, which endeavors to meet their maximum token issuance during the ICO, Skycoin is still available for sale. To beat inflation and deter speculation, the remaining 70 percent of the coin reserves is being distributed at a rate of 5 percent a year over 14 years.

If possible, try out a startup platform before investing in an ICO. If you are not incentivized to stay on the platform and exchange and create tokenized value, the business may not be around for long.

 

Tweet123Share196ShareSend
NewsBTC
NewsBTC

NewsBTC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Unlock SPY Potential

SpacePay: Where Dogecoin and XRP Meet Real-World Payments

SpacePay has created a convergence point where fundamentally different cryptocurrency ecosystems meet through practical merchant payment applications. The platform’s $1.1...

ericdunne519 2 days ago
Ethereum

Ethereum Chart Confirms Bull Flag Breakout: $3,834 Target Comes Into View

Ethereum has finally touched the $3,000 price level once again after spending weeks trading in a narrow range beneath $2,800....

Scott Matherson 3 days ago
Presale Opportunity: The SPY Token Advantage: What Makes SpacePay Crypto Unique?

Presale Opportunity: The SPY Token Advantage: What Makes SpacePay Crypto Unique?

SpacePay is a company in London that wants to make it easy for people to use crypto in everyday life....

ericdunne519 5 days ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

SpacePay (SPY) Token Presale

SpacePay (SPY) Token Presale: Could This Be the Key to Real-World Crypto Payment Adoption?

ericdunne519 1 day ago
Ripple

Ripple’s $21 Trillion Dream: What Capturing 20% Of SWIFT Volume Means For XRP

Scott Matherson 2 days ago
Bitcoin

Bitcoin Stalls After Rally: Will It Blast Through $125,000 Or Slip Back To $110K?

Scott Matherson 3 days ago

Premium Sponsors

Press Releases

  • 2 kryptoměny s extrémně vysokým oceněním, které mohou stát za to riziko

    2 kryptoměny s extrémně vysokým oceněním, které...

    3 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    2 rendkívül magas árfolyamú kriptovaluta, amelyeket...

    4 hours ago
  • 2 криптовалути с небесни оценки...

    7 hours ago
  • 仮想通貨プレセール|ビットコイン向け最速かつ唯一の本格レイヤー2が300万ドル突破

    ...

    7 hours ago
  • 2 rendkívül magas árfolyamú kriptovaluta, amelyeket érdemes lehet kockáztatni

    ...

    7 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.