Cryptocurrency is often considered of value, but as the blockchain space continues to evolve, tokens are being created that expand benefits beyond monetary gain.
Scott Gralnick, Director of Global Partnerships for ShapeShift, a Swiss cryptocurrency exchange, said that the cryptocurrency could help launch Web 3.0 as many toolkits are designed to provide features beyond market value:
At ShapeShift, we are not limited to the idea that a token has value, is traded, or is held. In the future, we hope the tokens will have functionality that goes beyond the simple digital resource. Instead, we believe that tokens will enable the creation of a fully decentralized ecosystem.
Although there is no clear definition of “Web 3.0”, the term is used to describe the technologies that will shape the future of the Internet. Hence, many in the crypto community believe that this future version of the internet will be decentralized.
Don Tapscott, noted author and co-founder of Blockchain Research Institute, told Cointelegraph that Web 3.0 is in the viewer’s eyes. “There are many definitions, but in general I’m not very fond of stage theories. I feel that over time, people begin to shape reality to fit their own theory.”
Multifunction icons designed to work in Web 3.0
To ensure true decentralization, Gralnik explained that the loyalty token FOX ShapeShift, launched in November 2019, has moved to a feature-rich token that can now be used in three ways via the ShapeShift ecosystem.
While FOX tokens have value, Gralnik stated that they also provide users with free trading on the ShapeShift platform. Additionally, Gralnik shared that ShapeShift recently released a product feature called “Rainfall” that rewards ShapeShift users for having FOX tokens. “If you are a certified ShapeShift user and store FOX in your wallet, you will automatically be taken to Rainfall,” said Gralnik.
Put simply, Rainfall is designed to reward ShapeShift users who own FOX, a stable currency backed by the US dollar, and the USD (USDC) coin. For example, every time a ShapeShift user trades on the platform, he gets a chance to win a free amount in USD. Gralnik shared that users with more FOX tokens are more likely to win a stable coin. Although the project launched on October 28, Gralnik shared that more than 5,000 rain prizes were offered to users, noting that 3% of users received USDC with a value over $ 25.
It is important to note that precipitation differs from voltage. Shapeshift founder Eric Voorhees told Cointelegraph that while some might view Rainfall as a “bonus bet”, it’s actually much easier. “Our users don’t need to use FOX tokens anywhere. As long as they keep them, they earn rainfall payouts,” he said.
Binance, one of the world’s largest cryptocurrency exchanges, is using the original Binance Coin (BNB) token to give users more options.
Binance CEO Changpeng Zhao told Cointelegraph that Binance’s BNB token has many advantages. Although BNB is known to operate the Binance ecosystem with base gas, Zhao stated that it is also used for trading commissions on the company’s stock exchange and the decentralized stock exchange.
Additionally, BNB is used to sell tokens on Binance Launchpad along with trade payments. For example, it was announced in May that CoinPayments, a leading provider of cryptocurrency payments, would support BNB Binance token to merchants around the world. BNB token was also used to reward users, as shown when Binance offered BNB tokens to test Binance’s decentralized exchange at launch. Zhao commented:
“There are a lot of apps and utilities for BNB, from games to money transfer. The BNB ecosystem now has a wide and diverse community. I don’t know what they’ll come up with next time, but I’m sure a lot of them will be very fun.”
Zhao also indicated that Binance believes in the long-term investment that the platform wants to build for the crypto environment as a whole. Zhao explained that as the industry develops and participants interact with device tokens, more multi-purpose tokens will emerge to feed the global ecosystem.
DeFi will release multifunction tokens, but what about Web 3.0?
According to Zhao, new multifunctional tokens are rapidly emerging, especially with the rise of decentralized finance. Defiprime.com lists 216 DeFi projects, as well as a list of reputable DeFi codes associated with specific projects.
While many of the DeFi tokens are viewed by the crypto community as a get-rich-quick scheme, some of them exceed economic value. For example, Ichi.farm is a new DeFi project that uses the referee code known as “ICHI”.