Investing in tokens – not just a game

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Cryptocurrencies have developed and matured in to an entirely new class of asset. Completely digital and constructed using blockchain technology, they are a genuine, game-changing means of raising capital for the funding of new and existing businesses alike. The benefits of using crypto are two-fold, firstly they allow investors exposure to new and exciting businesses, whilst also providing a means for traders and investors to monitor any movement in the price of a token. Throw in to the mix that fact that crypto is built on blockchain technology, the result is a very transparent and secure infrastructure.

In 2017, a sizable amount of money was poured into cryptocurrency, something that looks certain to continue throughout this year, as more and more ideas and businesses look to tokenise to raise digital capital to enable company growth. Additionally, towards the end of last year, two major US futures exchanges initiated Bitcoin trading, providing improved access for institutional investors. The more that businesses adopt cryptocurrency by launching their own tokens, the more money will flow into the asset class and investors will seek out the very best ideas which should lead to token values increasing.

Other cryptos or “alt coins” as they are often referred to, are certainly worth taking a look at. Whether or not an investment is worth the risk needs to be thoroughly researched by the investor. For Playkey’s token PKT, we spent a long time at the end of 2017 travelling around the world to get in front of investors and explain to them why our business model is worth their attention over a vast array of competitors. We gratefully saw a really strong demand for the token when we launched our ICO, granting us the capital we needed and it now looks as though investors are attracted to PKT in the secondary market as our token value increased over 400% at its highest point since it launched.

Far too commonly, people compare gaming to investing, due to the fact that the person is placing their money on an outcome as part of a calculated decision on what they expect that outcome to be. For many, buying or selling a share is similar to ‘taking a punt’ on a horse in a race or a number on a roulette table. However, cryptocurrencies should not necessarily be likened to gaming in the same sense that investing in stocks and shares shouldn’t either. Alternatively, they should be looked upon as an investment and asset class in their own right. There will unavoidably be successes and failures in the crypto arena, but some will go on to completely transform and innovate their industries, something we are planning on doing at Playkey. Of course, should an investor choose wisely and back a company that goes on to succeed, then the investor could be significantly rewarded.

As mentioned, investment in digital assets should be seen as a very different exercise to gaming, but of course there are natural human reactions, motivations and impulses that are present in both activities. Whilst a gaming enthusiast plays a game with the desire to win, an investor makes a trade in order to make a profit. In some instances gamers can make money using their skills, look no further than the huge boost in eSports over the past few years, which may well increase the want to win. With investing and cryptos in particular, mainly because they are so volatile at the moment, the potential monetary rewards are what make investing or trading cryptocurrencies the ultimate compulsive trigger, however investors must ensure that they understand the risks involved as well as an opportunity to profit.

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