RE:Cryptotoken ... NOT cryptocurrency. Yes, Jaytee. Noticed. Also, still going by the fact they are building foundations. I will post something I posted a couple of months ago to help others understand the difference. This is why I believe we won't be affected by crypto fluctuations. It's a long read, but hopefully useful to some people here.
Some things I learned
Cryptocurrencies fall into two general categories and from an evaluation perspective these are relevant as they impact the value you might attribute to each. By definition, a cryptocurrency is a digital asset designed to work as a medium of exchange. Cryptography is used to secure transactions, to control the creation of additional units and to verify the transfer of assets. In our context we view a currency as a unit of account, a store of value and a medium of exchange. Not all cryptocurrencies fulfill these “currency” characteristics but they are nonetheless categorized as such.
Bitcoin is the first decentralized cryptocurrency to successfully use a public distributed ledger to record and validate transactions in a chronological order using what is now referred to as the blockchain.
Two common separate categories of cyrptocurrencies exist:
• Altcoins: Altcoins (or coins) are alternativecryptocurrencies launched after the success of bitcoin; they act as an alternative to bitcoin. Many altcoins are a variant of bitcoin while others aren’t derived from the bitcoin protocol at all but rather are based on a totally separate protocol and blockchain. Nonetheless, each altcoin has its own protocol and own blockchain which supports its native currency.
• Tokens: A token is a representation of a particular asset or utility that usually resides on top of another already established blockchain. Anything that is interchangeable and tradeable can be represented by a token. It is a much easier process to create tokens as you do not have to modify the protocol code or develop a new blockchain. You simply follow the template provided, such as the one Ethereum offers. Creating a separate token is made possible through the use of “smart contracts” which are essentially computer programs that directly control the transfer of digital assets or currencies under certain predetermined conditions.
Tokens are created and distributed to the public through an Initial Coin Offering. Tokens operate on top of a blockchain that facilitates the creation of decentralized applications.
A Guide to Establishing the “Value” of a Cryptocurrency
If you are an investor in tokens, your analysis likely differs from that as an altcoin investor. In general, you look at the same things, but you weight their importance differently. I own a combination of both and use the following criteria to decide what to invest in:
• What is the current market cap of the crypto and what is the trend of its market cap relative to the total market cap of the crypto sector?
• Does it satisfy an existing and growing business need? If so, is there a compelling business case for its existence?In this regard I find that it is best to assume that a large number of new cryptos are going nowhere….and so I like to see what people who invest in this space are saying. At the moment I am heavily reliant on outside “experts” in this field and look to their recommendations as a starting point.
• Is there a limited and known supply of the crypto combined with rising demand?
• Does the cryptocurrency have a protocol that allows others to launch and manage their own digital tokens from it, thereby providing an opportunity to buy an actual piece of the protocol? This may be the more valuable investment. For example, the Ethereum platform has created a protocol that supports the issuance of different crypto tokens and so as more tokens are issued, more ether is required to satisfy the growing demand. This creates a built-in positive growth chart for ether. On the downside, ether, at the moment at least, does not have a limited supply.
• Does it facilitate communication between existing channels and the new channels created using blockchain technologies? In other words can it be integrated into a wide range of already operating centralized systems and decentralized systems?
• Is it receiving increasing social media attention?
• Does it facilitate and/or provide a solution to current operational setbacks of the blockchain such as scaling issues?
In general, I would prefer to own a piece of the protocol rather than the app, however I have found compelling reasons to own both. In any case, once your own investment criteria are met, then you can begin the process of purchasing and storing your crypto investments
https://www.alfahim.com/
https://en.wikipedia.org/wiki/Sulaiman_Al-Fahim
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=23020434
https://www.linkedin.com/company/al-fahim-holdings-l-l-c-/
https://www.bayt.com/en/company/al-fahim-group-11187/
https://www.thenational.ae/business/al-fahim-s-resilient-family-firm-reveals-the-value-of-staff-loyalty-1.216524