I was reading about Weifund crowdfunding. In it, some custom crypto-tokens are provided to investors in exchange for an invested amount. I just want to know how will that investor use that token so that the same also gets the profit of investment? Correct me if I am wrong in any means.

  • Are you asking how any tokens would provide an investor profit of investment? Feb 21 '17 at 14:50
  • @Samyoul to be exact, i just want to know all the possible uses of the token
    – Aniket
    Feb 22 '17 at 8:14

to be exact, i just want to know all the possible uses of the token

The tokens will have many different use cases, listing "all possible uses" is not possible because the use of tokens is not exhaustive, and there may be clever future use cases of tokens that no-one has thought of yet. However, with that said I will list uses of tokens as far as I know:

Uses For Token

Below I've listed possible uses for tokens.

Stake in project

The project could be a kind of company and the tokens could represent:

  • A share in the company
  • Voting rights in the company
  • Dividend rights in the company
  • All of the above

A Deeds of ownership

The project's tokens could represent real world assets / commodities that will maintain / increase in value because of their real world applications. This could be gold (https://www.dgx.io/), uranium, oil, a pile of rocks or a forest of rare trees. The tokens would represent:

  • Your ownership of these commodities

A Token of Value

Many projects have internal tokens of value that are used as payment on their platform. The tokens are freely trade-able on the open market and an investor would make money selling the tokens when the market price of the tokens are higher than the buy price.

Not all Tokens are for Profit

I've dealt with the main use cases of tokens in the context of business or with a profit motive. But there many cases where the tokens issues by a fund raising campaign would not hold any immediate value. Also note that not all tokens are transferable, some by design are not.

Tokens of Membership

Each contributor to the campaign would receive a token that would represent:

  • Membership of an organisation
  • Proof of being a contributor
  • Proof of attending an event

Redeemable tokens

The campaign organisers may wish to use the tokens as a way for the funders of the campaign to claim a promise. Perhaps the campaign is to make a special kind of teddy bear, you can claim your own teddy bear by exchanging your "backer tokens" for the special teddy bear.

Like I said, there is no true exhaustive list of what a token can represent or how tokens should be used. At the end of the day tokens are just a number on the blockchain, we use our imagination to pretend that they mean something else.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.