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Defining Social Tokens and How to Invest in Them

Social Tokens

Social Tokens are beginning to make waves in online communities. It’s a digital asset for people who want to grow their value on the internet over time. But what are social tokens, exactly? And why are they considered significant in today’s world?  This article explains the A to Z of social tokens.

Understanding Social Tokens and Its Need

Generating income is no longer dependent on a job or a business. As technology is evolving, people are finding many ways to earn money online.

Individuals represent themselves on social media platforms to showcase their talent.

For example, a person who has a good voice represents himself as a singer on YouTube. Someone with a great fashion sense represents herself as a fashionista on Instagram.

In both the mentioned cases, the individuals are creators. That is because they create content and post it online.

But how do these creators earn?

When the creator’s content makes an impact, they begin to earn a fan base. For Instagram, it would be the number of followers. For YouTube, it would be the number of subscribers. And so on.

When their followers reach a certain number, they can monetize their content. The disadvantage is that the platform takes a part of the creator’s generated revenue. Also, the platform has control over the creator’s content to an extent.

Social tokens bridge this gap in the creator economy.

What are social tokens crypto?

Social tokens or social crypto tokens are like cryptocurrency brands. They act as digital membership cards for specific creative individuals or brands.

Social tokens replace subscription models better. Investors don’t always have to pay money to the creator to get a social token. Plus, they get an ownership interest in the creators’ official token. The total value of the creators’ token impacts the value of the purchased token.

This is like how the stock market and cryptocurrency work. Social tokens work on blockchain technology. For example, the Ethereum platform constructs the social activity token. This is why social tokens are completely secure.

The purpose of social tokens is to decentralize the creator economy. Also, social tokens, contrary to NFTs, are fungible tokens. This implies that there can be more than one social token sharing the same value.

Think of it as the value of a certain crypto coin at a certain time. The value remains the same across its users. The investors share the rewards and privileges of that particular social token.

An example of a social token is RAC ($RAC). It’s issued by RAC, a Portuguese musician known for his Grammy Award for his remix of “Tearing Me Up.”

The token holder of RAC has the following privileges:

  • Enable a personal discussion on Discord
  • Access exclusive content
  • Earn valuable merchandise from the artist

Types of Social Tokens

Utility Tokens: In exchange for the token value, the supporter earns certain benefits or utilities. For example, obtaining official merchandise, online passes, and more.

Community Tokens: These tokens are created for community members. Having acquired this token, the community members have access to each other. They can also take part in community activities.

 The interactions happening between such communities are usually monitored by the decentralized autonomous organization (DAO).

Benefits of Social Tokens for the Creator

  • The community members or followers fund the creator through social tokens. This removes the creator’s dependency on the social media or publishing platform. As goes unsaid, their income increases too.
  • The relationship between the creator and the community improves.
  • The creator has entire control over what privileges he has to offer to his token holders.
  • The creators can build a genuine community online. There is no chance of fraudulent transactions since the underlying technology is secure.
  • Social tokens create customer engagement. This increases the customer retention rate, eventually increasing creators’ income.

Note: If the creator is new to the concept, he must first look up how to invest in social tokens online.

Benefits of Social Tokens for the Customer

  • The investor can earn benefits by selling the token at a higher price later.
  • The social token holder will have privileges that the other community members won’t. For example, access to personal and premium content, casting a vote in a creators’ poll, etc.
  • The investor can redeem their tokens in exchange for gift cards, discount codes, etc.
  • The investor owns a part of the creator’s economy.
  • The investor might have instances where he can communicate with the creator.

How to Invest in Social Tokens Explained

Before investing in social tokens, the customer should lookout for the following:

  • If the creator or brand is more likely to grow in the future.
  • If the creator has been existing for years and has a consistent fan base.
  • A creator whose content he loves and wants to support in his journey.
  • If the investor wants to sell the token in the future to earn profits.

To buy social tokens, follow the steps below:

  1. First, check the listings of that particular token.
  2. Register on platforms that enable cryptocurrency exchange. For example, Binance, Coinbase, etc.
  3. Buy a relative cryptocurrency from a cryptocurrency exchange company for social token transactions.
  4. Then, using the crypto coins, trade the social tokens on their listed platform.

It’s wise to do extensive research beforehand. Also, the investor must invest in sensible amounts to avoid any high financial risk.


Social tokens help creators and brands to grow globally. Hence, they play an important role in their success. As social tokens cater to genuine customers, they have long-term potential for growth.

More on this topic:

The Metaverse Revolution Is Coming

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