Tokenization: The Rule of Threes

Tokenization represents the third wave of crypto – and that’s why I believe it will succeed.  It’s a pretty radical claim, but let’s look at the evidence.

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The number three is both instinctive and psychologically satisfying.  In many fairy tales and contemporary children’s books, the hero learns from two past attempts and finally succeeds on the third try.  And according to Inc. Magazine, the U.S. Marine Corps uses a “rule of three” to make sure each Marine has exactly three tasks or goals at any given time.

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All of which may not be too surprising, given that we make our home on a Goldilocks planet, the third rock from the sun:  not too hot, not too cold… just right.

But what’s surprising is how often the Rule of Threes applies to business.

The First Two Blockchain Waves

Take blockchain.  Let’s look at the evolution of blockchain offerings from a Rule-of-Threes perspective.

Wave #1 was the advent of Bitcoin and the dawn of the ICO.  Even though Bitcoin is still doing well, public confidence has been repeatedly undermined by people using crypto for sketchy darkweb activities, along with numerous unstable, unreliable currencies.

Wave #2 was the utility token, a great idea for funding and driving a particular ecosystem, usually around a startup.  Unfortunately, public confidence in utility tokens has been undermined by the fact that many of these businesses were poorly conceived and couldn’t stand on their own two feet.

The teetering instabilities of Wave #1 and Wave #2 have driven Shark Tank’s multimillionaire Kevin O’Leary to express doubts about crypto’s future.  He seems to love referring to a sample portfolio he invested in a few years ago as “crypto crap” because all…

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