How To Invest In Application Tokens Successfully 🚀
GM DOers!
Who’s ready for the next crypto bull run? 🚀
We've mentioned before that we believe we are in the early stages of the next cycle. We're here to ensure you're prepared to capitalize on the opportunity. 🌊
As a follow-up to our “A Framework To Successfully Invest In Web3” report we shared last month, today we're digging deeper into the risk curve, sharing insights on how to invest in application tokens. These are essentially all other fungible tokens in the space!
While I wouldn't recommend going all-in on any of these tokens at this moment, now is the perfect time to educate yourself 🧑🎓 and begin determining which tokens to invest in for the upcoming cycle.
Those who put in the work now will reap the most benefits. 😀
Those who wait until the hype cycle is upon us may miss the boat. 😕
As usual, at Web3 Academy, we want you to be at the forefront and stay ahead of the curve. So today, we’re exploring how to successfully invest in application tokens.
By reading this, you'll gain a deeper understanding of:
What application tokens are,
The flow of capital in crypto,
A token’s function,
What to analyze before looking at tokenomics,
How to ensure that a token captures the business' growth.
Also FYI, this is an excerpt (1 module out of 6 🤯) from an entire investing course that Web3 Academy will be launching in the next 30 days!
We believe this is going to be the greatest investment course in web3 and crypto.
As you’re a proactive newsletter reader, we wanted to give you a HEFTY discount and early access to this course, because, well, you’re amazing.
All you need do to get the discount + early access, is hit us with a GM by replying to this email. 🚀
What Are Application Tokens? 🤔
Application tokens represent use cases built on top of blockchains. They're not native tokens acting as currencies for a blockchain (like $BTC, $ETH, $SOL), but they symbolize applications, protocols, communities, and even DAOs or social tokens.
You might liken them to stocks, given the range of sectors these tokens represent—gaming, staking, metaverse, social, etc. However, they're programmable and can offer more functions than just equity and governance, unlike traditional stocks. 📈
Imagine owning shares in your favorite website or app, but those shares do more than just fluctuate in value. That's what application tokens are all about. 🌐
Think about buying Amazon ($AMZN) or Netflix ($NFLX) shares to invest in these businesses. Similarly, you can purchase tokens such as $UNI for Uniswap or $RPL for RocketPool.
These tokens represent your slice of the pie in these blockchain-based applications. 🥧
As these applications grow and prosper, so does the value of your tokens.
However, not all tokens work like that. Some don’t even resemble the application growth. There are instances where applications grow while their token goes to 0.
A good example of this is StepN, which is an app that’s seen massive user growth in the past year. Despite that, its $GMT token is slowly going to 0.
To understand why that happens, you need to understand how the application (the business) and the token works.
Later in this report, we’ll show you exactly how you can analyze these things, to ensure that the token you invest in is actually going to turn out to be a good investment.
Unfortunately, your free subscription only gets you this far.
To unlock the insights below and start receiving weekly onchain reports that will help you invest and build in web3, please upgrade your subscription.
REMINDER: To get early access & a BIG discount to our upcoming Investing Course, reply to this email with a ‘GM’.
P.S- PRO members get an even heftier discount. If you decide to go PRO today you’ll not only get the full scoop on application tokens, you’ll also make yourself eligible for the biggest discount on our Investing Course.
We’re excited! Are you? Give us that GM & show us.
Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha! ❤️
See you soon. ✌️
