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What are the factors that influence value of a Utility Token?

More the activity on the platform means more people earning or buying the Token and more people selling or redeeming it. Thus, more will be the value of the Token.

If the Token Supply is restricted; more will be the value of Token

% Distribution of Tokens between stakeholders and customers would impact value of Token; and so will the velocity at which Token is released.

If more Tokens are Hodl'd , i.e, where people keep Tokens preserved anticipating rise in value; the value of a Token rises

Size of the addressable global market, the market growth and progressive market share; all of these factors have an impact on the value of the Token

Percentage of Float which is initially bonded in Notes - impacts the value of Token

The monetary supply needed for Sportco's GDP impacts the value of the Token.

Tokens needed to facilitate the sports market supported by Sportco

In summary, the factors that influence value of a Utility Token are:

  • How many are RELEASED / Volume and Frequency
  • How many are NEEDED to be available across the board
  • How and to whom are they DISTRIBUTED
  • How many are STORED / UNUSED
  • How much is MARKET SIZE, GROWTH, SHARE
  • What is the velocity of CUSTOMER ACTIVITY on platforms

 

In the next article in the Series, we will explore the valued of the Factors with Live examples in Sports Industry

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