The tokenization of assets and rights is growing consistently in Brazil and in the world, and one of the biggest reasons is the versatility it provides to use it in the most varied business modalities. For example, do you know what utility tokens are?

Also called a utility token, this cryptoactive is the digital representation of a product or service and promises to be a major revolution in the relationship of brands with the market.

An example of a well-known utility token is the fan token, which is already offered by several soccer clubs in Brazil and gives the right to buy products in advance and even vote in the choice of new shirts.

The application of the utility token is as broad as the market itself, as an effective tool for capturing and retaining customers, with security and operational cost reduction, and promises to be a strategic divisor in retail.

But how are utility tokens issued and where are they traded?

BLOCKBR, a web 3.0 native company, brings you everything about utility tokens to leverage a company’s results or bring benefits to those who invest!

WHAT ARE UTILITY TOKENS?

These are tokens created by the same process as business or asset tokens – blockchain and smart contract – but with the goal of granting the holder access to exclusive benefits with the issuing company.

It is an innovation in the brands’ relationship marketing strategies, representing the offer of customer relationship programs – for example, priority in the purchase queue, special discounts, and the accumulation of points in loyalty plans.

In this way, utility tokens can be extremely effective in attracting and retaining customers, bringing together the benefits of the offer itself with the competitive advantages of tokenization.

WHAT TO KNOW BEFORE INVESTING IN UTILITY TOKENS

Before you start issuing or acquiring utility tokens, it is important to observe a few conditions in order for this cryptoactive to be used in the most efficient way.

ARE NOT ASSET TOKENS

The tokenization of real assets represents the monetary value of a company’s or a person’s asset or right – it can be an insurance asset, such as stocks or debentures, a brand expansion project, or works of art.

A great example of a market that uses this asset offering is real estate tokenization, which is a reality in the world and is in the process of being regulated in Brazil.

It is a way for companies to raise funds, unlike utility tokens, which are aimed at generating attractiveness and competitiveness for the brand in exchange for commercial advantages.

HAVE INDIVIDUAL VALUATION

Utility tokens are valued by a number of factors:

• Brand reputation;
• The performance of the offering company;
• The attractiveness of the program (benefits, rules);
• The performance of the program over time;
• Scarcity – the quantity is limited by company strategy.

So even though it is not in essence a form of investment, the conjunction of these factors can make a utility token highly valuable.

ARE NOT CRYPTOCURRENCIES

The natural tendency is for us to look at utility tokens as a kind of virtual currency, because they make transactions possible, even if only at the company distributing the tokens, and because of the valuation, which can make them a means of trading another digital asset.

However, utility tokens are not digital currencies – bitcoin, ether – in the broad sense of them, which were created as a disruptive and unrestricted means of payment, taking space from fiat currencies.

The best comparison with cryptocurrency is in the Real Digital, the Central Bank project that aims to implant the Brazilian digital currency in the everyday market – without cards, fees, and bureaucracy.

HOW DOES THE ISSUING OF TOKENS WORK?

The way to issue and offer utility to kens is the same as the other token modalities: in the primary market through an asset tokenizing company, which will use a blockchain and a smart contract, the digital document that manages all the rights and obligations of the parties.

If we take a loyalty program as an example, the movements of each subscription(token) are electronically controlled, from the acquisition, the use of the acquired benefits, the incorporation of new advantages, the expiration of points, and other events.

The company that owns the product/token defines:

• The amount of tokens to be offered;
• The term of the offer;
• The requirements and limitations of the acquisition;
• The conditions for the enjoyment of the advantages;
• The market value assigned to the token.

These decisions are free, without interference from controlling institutions.

PREFER TO BUY UTILIY TOKENS ON EXCHANGES

Although utility tokens can be traded freely in the secondary market – between owners of the tokens – it is important to remember that it is safer to buy to kens on exchanges, the platforms that operate the companies’ offerings and make them available to the market.

Some factors contribute to this choice:

• Transparency in token sale information;
• The platform’s data protection investment;
• The security of dealing with an established company.

BLOCKBR provides companies with all the infrastructure necessary for the interested public to feel secure in purchasing utility tokens.

SEE SOME EXAMPLES OF UTILITY TOKENS

• Fan token: an exclusive benefits program at soccer clubs in Brazil and basketball clubs in the USA (among other sports), and is used by artists and celebrities;
• Loyalty programs;
• Employee benefit plans;
• Reward programs;
• Pre-sale coupons.

WHERE CAN YOU TRADE UTILITY TOKENS?

For companies and individuals who want to offer services that fit the concept of utility tokens, the way forward is to issue and distribute them through a tokenizator of goods, [link interno] that has the expertise in using blockchain technology to create the ideal offering environment.

At BLOCKBR, you find a highly qualified and committed team to understand what your utility token business goals and rules are and create the most effective offering plan.

If you want to invest in utility tokens, the best option is to open an account in a token marketplace, platforms that make available the most varied tokenization projects.

On BLOCKBR‘s token offering platform, you will see why investing in to kens is an excellent decision, whether you want to participate in the companies’ projects, generate passive income, or enjoy exclusive benefits.

Opening a BLOCKBR account is simple and fast to invest and profit with tokens!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.

The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?