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Social Tokens

Social Tokens: A Complete Guide


Most people are familiar with cryptocurrency, and we're sure you have a vested interest in the subject. But social token is a relatively new concept, and most people are not caught up on the topic yet. However, it has attracted much attention, and many cryptocurrency seminars are actively promoting it. It wouldn't take too long for it to become mainstream.

Social tokens are tokens with monetary value, unlike non-fungible tokens. They are protected by blockchain, just as other cryptocurrencies like Bitcoins and NFTs are. But there are a few significant differences. We will give you a comprehensive introduction to the subject in this article.



How Does Tokenization Work?

Tokenization means making tokens a medium of exchangeable value. The fundamental aspect of tokenization is affiliating a significant asset to a relatively unremarkable object. That object then receives the power to represent the affiliated asset.

Despite what people might believe, it is not a new concept. You can think of tickets and coupons as a type of token. However, a more accurate example would be the chips used in a casino.

Paper money is also technically a token if we want to stretch the boundaries. The condition for the emergence of a one is that it needs to represent a set amount of assets. The other condition and the more crucial one is that it requires a certain amount of credibility.

As you may already guess, the idea of tokenization did not start from Blockchain technology. However, Blockchain can act as a credible backer to make this system widely available.


What Are Social Tokens?

Social Token is a Blockchain token that follows a similar value format as NFTs and standard cryptocurrencies. It is a token sold by artists, other creators, or specific communities. These tokens have exchangeable values, unlike NFTs.

The creator who authorizes the tokens determines their trade value. For example, the creator can associate a specific service they provide. A celebrity can sell them, which their fans can trade for a live chat, autograph, or similar services.

This token is not limited to individuals either. Brands and groups can make them too. The critical thing to note is that you can resell these tokens. Their value can also change with time. For example, you can collect one issued by an up-and-coming celebrity for a small price. This same token will have a much higher price if you resell it when they become more popular. 

The gist of it is that the social tokens are not non-fungibles. You may exchange them for benefits or services from the brand or creator affiliated with them. Depending on how popular or unpopular the issuer becomes, they can change in value. And Blockchain is the one providing the credibility of these tokens.


Types Of Social Tokens

There are two types of social tokens currently in circulation—ones issued by individual artists and creators and ones given by a brand or group. We call the former a personal token and the latter a community token.

Of course, we will provide a more comprehensive definition of the two variants:

1. Personal Token

Individuals make personal tokens. They can be artists, celebrities, or even social influencers. Anyone with sufficient exchangeable assets can make these things. It is an innovative way of monetizing your work.

Content creators make use of these tokens to promote themselves. Such things can also serve as a way of rewarding their fans. The creator can also limit the number of these items. Creating scarcity will increase its value. Some artists like giving the tokens only to their most loyal followers.

Most of the time, creators affiliate their services to the tokens. The fans or people who buy them can trade them for exclusive content, merchandise, or similar commodities. Sometimes the tokes may not have any clear financial aspect at all. The fans would view them as clout or reputation.


2. Community Token

Community tokens are issued by communities, as the name suggests. They can act as an entry ticket to the community or have tradable value within the community. Usually, the latter case is where you can trade it for certain community facilities.

Using the tokens as a gatekeeping tool is usually the most common usage. Since the limitations of an individual do not bind communities, they can use both NFTs and social tokens as entry requirements.

Some communities or brands can use their token as a badge of honor. It can incentivize the members to do certain things or follow specific trends. The only difference is that this badge of honor has trade value. Members can use it to unlock more privileges or benefits.


Differences Between Social Tokens & NFTs

The fundamental difference between social tokens and NFTs is fungibility. NFTs are non-fungible, while social tokens are fungible commodities.

Each NFT on Ethereum is distinguishable from one another. Every piece has at least some form of different characteristics. It has zero value alone but can gain massive weight based on who shows interest in it.


The social tokens are indistinguishable virtual currencies issued by individuals or groups. They have a value attached to them by their creator. The service or benefit it provides will always remain constant. All tokens with the same asset will be identical, hence the fungibility.

NFTs exist as a form of a collectible commodity without any intrinsic value. The ultimate value of it depends on who buys it. On the other hand, social tokens are a way for the creators to enrich their economy. It's more like a stock because it can fluctuate based on the creators' condition.


Differences Between Cryptocurrency Coins And Social Tokens

A cryptocurrency is a form of digital currency; a social token also falls under that category. But cryptocurrency is merely a digital coin. It only serves the purpose of being a raw currency. The social token, on the other hand, has affiliated value.

Crypto coins are digital coins of their native Blockchain. They represent a tradable value higher than social tokens. You can use the coins to trade for more things than a token.

Social tokens are a kind of asset. It represents the service or benefit that the creator is willing to offer in exchange for it. That means the value fluctuates more often than regular cryptocurrency. Cryptocurrencies can replace money, but social tokens can not.


Benefits of Social Tokens

The primary benefit of using the social token is a better reward system. The conventional reward systems of coupons, discounts, and other add-ons are too banal.

These tokens are based on Blockchain, so their integrity and credibility are unquestionable. It can help brands, communities, or individual artists make a more stable economic ecosystem. It helps increase social exposure and membership contribution.

The creator may not need to exchange anything for the token. That is a rare situation, but it is possible. Fans often view these tokens as a form of prestige. They are incentivized to collect the tokens rather than trading them in. That makes things more manageable for the creators.

Perhaps the most notable benefit of this token is the connectivity. It cuts out the middleman and connects the consumer and creator. This type of transaction will be the basis for Web 3.0 in the future. It shortens the gap between creators and their fans, which also helps the creators more revenue.



Social tokens represent the door to a new economy alongside cryptocurrency and NFTs. In that economy, the creators and consumers are more connected, and the exchange of tokens can become an innovative method of exchange. It will be a step in the right direction for a truly decentralized economy.

To learn more about social tokens, NFTs and all things crypto, book tickets for our seminars where we will dive deeper into these topics. 


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