Cryptocurrencies are commonly known for being a store of value, but as the blockchain space continues to mature, utility tokens are being created that extend their benefits beyond mere financial gains.
Scott Gralnick, director of global partnerships for ShapeShift — a Swiss cryptocurrency exchange — told Cointelegraph that cryptocurrency can help launch Web 3.0 as more utility tokens are designed to provide functions beyond market value:
“At ShapeShift, we are looking past the idea of whether a token has value and can be traded or held. Moving forward, we hope that tokens will have functionality beyond being just a digital asset. Rather, we believe tokens will enable a fully decentralized ecosystem.”
While there still isn’t a clear definition of “Web 3.0,” the term is used to describe technologies that will power the future of the internet. As such, many in the crypto community believe that this future version of the web will be decentralized.
Don Tapscott, a famous author and co-founder of the Blockchain Research Institute, told Cointelegraph that Web 3.0 is in the eye of the beholder. “There are many definitions, but in general I’m unenthusiastic about stage theories. I find that, over time people start to shape reality to fit their own theory,” he said.
Multi-utility tokens designed to drive Web 3.0
In order to enable true decentralization, Gralnick explained that ShapeShift’s FOX loyalty token, which launched in November 2019, has advanced into a multi-utility token that can now be used in three ways across the ShapeShift ecosystem.
Although FOX tokens hold value, Gralnick mentioned that they also provide users with free trading on the ShapeShift platform. Additionally, Gralnick shared that ShapeShift recently released a product feature called “Rainfall” that rewards ShapeShift users for holding FOX tokens. “If you are a verified ShapeShift user and are holding FOX in your wallet then you are automatically entered into Rainfall,”…