Discover more from Inside Web3 │ By Julian Ivaldy
Inside Web3 | Why and How to Tokenize your Business
Logbook of a Web3 builder: News, resources, fundraising, and learnings
👋 Hey insiders,
I hope you are well today :)
This week we have been working on the optimal way to introduce Mobula to new users. We realized that we talked a lot about the tool advantages and the features that we couldn't find elsewhere but very little about our main struggle and what makes us different from leading crypto aggregators.
We spoke with many of our users and realized that interactivity, for example, was valuable to them in their use but not directly perceived. This was not the primary reason that would make them use Mobula. On the other hand, we realized that trust was much more appealing to users. People were increasingly aware of the drifts of the leading crypto aggregator (again this week in the press for abuse with airdrop). We took a lot of inspiration from Brave and focused on this aspect. The work we did on our vision and the writing on our documentation helped us a lot! Mobula, finally, a crypto aggregator you can trust.
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Inside Web3 | Why and How to Tokenize Your Business
💼 Entrepreneurial Resources
🤝 Amazon Web Services Partners Up With Avalanche to Scale Blockchain Adoption
“Looking forward, Web3 and blockchain are inevitable.” - Howard Wright at AWS.
🧝🏼♀️ AI-Generated Game of Thrones NFTs Sell Out
After launching on January 10th, 2023, the Game of Thrones “Build Your Realm” NFT collection created a buzz on social media as communities reacted to the quality of the NFTs.
🇸🇻 El Salvador Officially Passes a Law Establishing Legal Framework for All Cryptocurrencies
El Salvador continues its widespread adoption of digital assets as the country officially passes a law establishing a legal framework for all cryptocurrencies. The news was shared by the National Bitcoin Office of El Salvador (ONBTC), which stated that the law had been passed today.
💸 FTX Recovers $5 billion in Liquid Assets to Repay Customers, But Extent of Loss Still Unknown
In the last court hearing, an FTX bankruptcy attorney said the fallen crypto exchange had recovered over $5 billion of liquid assets in cash and crypto, including an additional $425 million.
📽️ Tribeca Film Festival Will Sell VIP Passes as NFTs
In partnership with crypto exchange OKX, the passes will include special access to screenings, parties, and other perks.
💼 Entrepreneurial Resources
🗿 3 Unique Lessons for Web3 Entrepreneurs from the Ancient Toltecs & Aztecs
These specific lessons recorded by the Aztecs may help us in the future.
🤖 How to Protect Your Career in the Face of AI Disruption
According to some estimates, as many as 20 million jobs worldwide may be at risk due to AI development. So, how can you protect your career in the face of this potential disruption?
💻 How to get a head start as a web3 entrepreneur
The best practices to build successful web3-based business models and communities in growing markets.
Animoca Brands lowered its fundraising goal to $1 billion in Q1 2023. Yat Siu, the co-founder of AB, acknowledged the challenge that raising that amount of funds would represent, with the demise of FTX having recently shaken the cryptocurrency world.
On the bright side, Macy’s Web3 campaign raised $4.8 million for its social purpose platform, Mission Every One. The platform is dedicated to creating brighter futures for young people. The mainstream retail store entered Web3 in 2021 by launching ten unique NFTs and 9,500 parade-themed pieces in anticipation of its 95th annual parade.
Why and How to Tokenize Your Business
A short introduction to tokenization:
In its simplest form, tokenization takes an existing asset or function and represents it as a token written and deployed on a blockchain. This could be a real-world asset like a stock or bond, a crypto-collectible… - An introduction to tokenization
Some resources before going further :
Why tokenize? 🤔
Tokenization can benefit a company in many ways - to increase efficiency in an internal process, ensure ownership of an offering, provide transparency internally or externally, and access funds... Let's break it down:
Tokenization can streamline various business processes using smart contracts and blockchain technology, such as supply chain management or voting systems. Thanks to tokenization, Mobula can list & modify an unlimited number of crypto-assets in-app in a much more efficient & transparent way than if it had to rely on a fixed team of employees.
Transparency and Security 🔐
Tokenization can increase transparency and security by using blockchain technology to create tamper-proof records of ownership and transactions. This can help prevent fraud and increase trust in the system. The luxury fashion industry has largely benefitted from the technology as it helps prevent counterfeits. Now clothing items can be secured and verified on the blockchain.
Tokenization is a complete game changer in ownership, as the token buyers have full control of their assets. SoRare, for example, has issued fantasy football player cards that buyers play and earn with while maintaining the option to sell at any time.
As mentioned earlier, tokenization can help build an ecosystem that works on a principle of support & rewards. Implementing community tokens can be a great way to democratize your business and bring structure to it simultaneously. Successful cases show proof of self-maintaining ecosystems that establish a healthy relationship between business and customer, where both parties benefit each other.
Access to cash 🪙
Tokenization creates new investment opportunities accessible to all. It’s much easier for an individual to buy tokens and thus become a “shareholder/token holder” of the project associated with the tokens. For crypto entrepreneurs, it is easier to finance themselves. It's like people could put any project on the stock market, and anyone could buy & sell a piece of their project anywhere in the world.
Things to be aware of
Sometimes tokenization for a project is unnecessary.
The fact that it is used for everything and nothing discredits the industry.
Familiarize yourself with the challenges it can bring and the elements that will help you prepare your business for tokenization.
Regulatory challenges 💼
Different countries and jurisdictions have different regulations on issuing and trading tokens, so familiarize yourself with them before jumping into action. These articles give a good overview:
Security Risks 🦹🏻♂️
As much as blockchain technology is secure and transparent, bad actors conduct scams and hacks in this space. Read this article to get an idea of how to protect your business from this happening:
The following factors are key to getting your business ready for tokenization:
Cross-functional knowledge: Do your homework, says Gary Vee
Diffused sense of importance: Work together to create a tokenized ecosystem
Enterprise readiness: Open up your assets to be used by other people
Interoperability capabilities: Make your business open for collaborations