Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

Advanced

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

ETH has outperformed, bolstered by SEC Chair Gary Gensler's announcement of his Jan 20, 2025 departure, and suggested by growing open interest in ETH perpetual. This positive momentum extends to several large-cap altcoins previously scrutinized by the SEC, as indicated by bullish funding rates for long positions.

Please check out the report’s highlights.

ETH Open Interest Grows While BTC’s Declines

ETH is outperforming BTC following the announcement of SEC Chair Gary Gensler’s departure, as evidenced in perpetual swap markets. BTC open interest has decreased from last week's highs, while ETH contracts have increased. Additionally, ETH trade volumes constitute a larger share of daily trading as compared to much of the past six months, despite an overall dip in trade volumes this week. The gradual decline in BTC open interest, without a surge in trading activity, indicates a strategic repositioning, rather than a wave of liquidations.

BTC Option Curve Inversion Deepens as Price Retreats

The pullback in the spot BTC price from the $100K target has led to a flat ATM volatility term structure, with short-tenor options dropping below 60%. 

This trend continues the correlation between term structure inversion and BTC spot price returns observed since the U.S. election on November 5, 2024

. The decline in front-end volatility aligns with lower realized volatility levels. While demand for short-tenor options has moderated, there hasn't been a notable change in open interest for calls or puts. Instead, their growth has stalled at the week's start.

Sentiment in ETH options markets seems moderately more bullish than in BTC's during the recent decline in momentum from the post-election rally. Call options lead in both trading volumes and open interest. 

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 27, 2024): Signal on ETH Outperformance Against BTC Surfaces on Long-Term Contracts

Bybit Learn

Crypto

Social tokens are digital tokens on a blockchain that allow creators to monetize experiences and services. Find out exactly how it works in this article.

Social tokens are building decentralized online communities where everyone benefits without a middleman. This article discusses the basics of social tokens and provides relevant examples to illustrate the concept.

Social tokens are digital tokens on a blockchain that allow creators to monetize experiences and services. The token can increase in value, and it can be resold by the token holder.

Social tokens are just like any other cryptocurrency. However, these tokens are created explicitly to empower a community and enable its community members to build a solid social bond around a specific individual or brand.

Anyone can create a social token. Whether you're an individual or a business, you can join the social token space and launch a social token to enrich the experience of your followers and clients. As more people use the token, its value will rise proportionally to the contribution of social token holders.

Unlike crypto tokens, social tokens mainly derive their value from the reputation of the content creator, and from the exclusive benefits that token holders receive in the form of engagements and experiences.

For instance, upcoming artists can launch a social token to offer a highly personalized experience to their followers. When the followers buy the token, they contribute to funding the artist, and receive exclusive benefits such as early access to music albums, the opportunity to engage in live Q&A sessions, invitations to special events, and private meetings. As the value of the token rises, both the artist and the follower benefit.

From a business perspective, social tokens can prove a goldmine. For startups, they're an ideal source of funding and improving fan engagement. For well-established businesses like Coca-Cola® and Apple, it's a perfect opportunity to enhance brand value by giving token holders early access to privileged content and new products. Since the amount of tokens is limited, rising demand increases their value.

People often think that brands can achieve similar results through a subscription service. While this is true to a certain extent, social tokens hold monetary value, which can increase substantially with time. In addition, users can exchange them among themselves or give them to others. This tangible nature makes them different from typical online membership schemes.

Social tokens are created by platforms that build them on top of blockchains such as 

Following a model similar to that of crypto, social tokens are often traded on platforms like 

. Since they hold value, you can buy and sell them as easily as any other digital asset. Some well-known social cryptos are 

The popularity of social tokens stems partly from the need to cut out the middleman. In a typical 

, social platforms such as YouTube, TikTok and Facebook take the lion's share of fees from creators and brands, which can reduce the potential income generated by the content creator. Similarly, social platforms also control brand followers without giving them any tangible benefit.

In contrast, social tokens use the blockchain to access a decentralized environment, in which content creators can easily market their products without the cost and regulatory constraints imposed by social platforms. In this setup, the popularity of a content creator can increase in direct proportion to the value of its social tokens.

Organizations and brands aren’t the only entity to benefit from social tokens. In fact, these creator coins are tailor-made for individuals and influencers. Just like the brands themselves, individuals can create and sell social tokens for funding, and to improve their reputation through market capitalization. A social token is to an individual what stocks are to a brand.

Social tokens are proof that the internet has moved from Web 1.0 to 

. In Web 1.0, the “information economy,” search engines such as Yahoo and Google enabled people to retrieve useful information. The trend gave way to Web 2.0, the “platform economy,” where Facebook and YouTube allow users to create content. Now, with Web 3.0 — the “token economy” — users can retrieve information, create content and contribute to the success of a platform. This brings creators and consumers together, paving the way for a more decentralized “creator economy."

There are two main types of social tokens: Personal tokens and community tokens. Since content creators are continuously finding new ways to use such tokens, you may also come across new terms, such as “participation tokens” and “social platform tokens.” These categories are sometimes described as distinct types of social tokens that don't fall into either of the two main types listed at the beginning of this paragraph.

To help explain, here’s an overview of each one.

Also called “creator tokens,” personal tokens are established by individuals to monetize themselves, and to provide privileged services to their followers. Anyone — celebrities, artists, athletes, and members of the general public — can create personal tokens to help boost their careers or notoriety.

Before the introduction of blockchain and the creator economy, music legend David Bowie used asset-backed securities, 

, to enhance his music career. Holders of the Bowie Bond were promised a return of 7.9% per annum for ten years on the royalty earned for the streaming of David Bowie’s music.

Nowadays, prominent artists are offering similar incentives through the launch of their social tokens on the blockchain. In 2020, the Grammy Award-winning artist, 

 (better known as DJ RAC) introduced RAC, the social token of the 

. The holders of the token can enjoy various perks, such as exclusive music playlists, token 

, a French entrepreneur, tokenized himself by selling ALEX to his crypto enthusiasts. This helped him raise the needed capital to form his own social platform in the U.S. Besides other incentives, token holders will receive a share of Masmej’s future income for the next three years.

Community tokens, or community coins, are created by organizations or by a group of people to market their respective brands to followers. Similar to members of a club, token holders can get exclusive benefits reserved for that particular community. These benefits are somewhat identical to benefits offered by personal tokens, but they may also give you 

 rights and a share of the company's revenue.

Community tokens are launched mainly by a decentralized autonomous organization, or 

. Unlike the creators of personal tokens, the organization overseeing a community token already has a large following, which makes it easier to market it.

For instance, when CoinDesk launched its 

 token in 2022, it marketed it during its much-awaited annual Consensus festival, which is attended by thousands of members. To show its gratitude, CoinDesk rewarded attendees at 

 with DESK tokens. The attendees could also use these tokens to buy items at the event.

WHALE is another example of a community token. It derives its value from rare and valuable NFTs in an art collection known as the 

. Since the project’s initiation in 2019, the value of the stored NFTs has increased from $500,000 to more than $70 million. WHALE token holders have directly benefited from the enhanced value. Besides access to exclusive Discord channels, events and giveaways, members can also rent and purchase NFTs from the Vault.

Participation tokens are sometimes described as a subcategory of community tokens. Users can earn these tokens by participating in the development of a project. For instance, the 

 token from TAIKAI is an example of community engagement. Universities and organizations can use these tokens to reward contributors who wish to participate in creating different types of projects.

TAIKAI also encourages students, freelancers and startups to create projects and contribute to proposals. The best proposal receives KAI tokens and prizes. Backers and experts who contribute to the project also get KAI tokens.

 is another similar initiative. The FWB token brings together artists, creators, thinkers and Web 3.0 enthusiasts to collaborate on a variety of projects. Successful teams receive hefty rewards for their contributions. Token holders are also rewarded for creating a summarized version of the content that other members can pay to unlock.

Social platforms tokens are distributed by platforms that support their creation and trading. Examples of social platform tokens include Rally, 

Rally is a popular social token platform that enables individuals, celebrities and organizations to create their own social tokens and NFTs. Since its launch, RALLY has gained tremendous momentum, manifested in its market capitalization of over $8 million in just a couple of years. Since Rally is a sidechain of the Ethereum network, the only drawback of the token is that it can only exist on the Rally network.

In contrast, TryRoll offers users the chance to create an 

 token that they can share with others on different platforms. It also offers custodial Ethereum wallets that are capable of sending social tokens to any address that supports ERC-20 tokens. However, TryRoll is not the easiest platform to use, and it has a high network fee.

Social tokens are fueling the creator economy, in which the two major stakeholders — the content creator and the token holder — collaborate to enhance a brand’s value.

The following is a brief list of the many benefits these stakeholders enjoy:

Traditionally, social influencers have used sponsored posts, advertising and subscription models to attract new followers. In this setup, the social platform has often received a big chunk of revenue, depriving content creators of reasonable profit. However, social tokens have changed this dynamic by letting content creators earn direct revenue and share benefits among their followers.

Social tokens have given fans new ways to interact with content creators, helping them become a part of the creator's journey. In return, the community receives a more personalized experience that strengthens the bond between the two. For instance, fans of Lil Yachty 

 from the rapper's mother after the launch of his YACHTY token.

By purchasing creator coins, fans are, in effect, pledging their support to the project. Unlike stocks and bonds, the value associated with each token is enforced by smart contracts. This means that there’s minimal conflict, because everything — from exercising users’ rights, to the extent of enforcement and how those rights are exercised — is written in the smart contract. This configuration ensures that there’s no need for third parties and negotiators to settle disputes.

Social tokens are secured by blockchain technology, in which data is structured into blocks, each of which contains a bundle of transactions. Every new block is connected to all preceding and subsequent blocks in a way that makes it practically impossible to tamper with the data. Therefore, it's nearly impossible to hack into a blockchain. It's only when such creator coins are moved into a 

 that they become truly vulnerable. Even so, well-known digital wallets adopt extremely strict security mechanisms that make social tokens one of the safest digital assets you can own.

Before investing in a social token, it's sensible to consider the following drawbacks.

Social tokens are a financial instrument, which means that there’s risk involved in holding them for investment purposes. While their values can increase substantially, remember that not every token has a value behind its project. This is particularly true for social tokens, which don't have the backing of large venture capital firms that only invest in viable opportunities. If the creator of a social token decides to back off from the project, there’s no way for you to recoup your investment.

There is no global regulation in place to scrutinize social tokens. Hence, content creators may have to deal with several legal gray areas, which can include liability issues and false advertising concerns. From a consumer perspective, the law is still ambiguous about the extent to which consumer law will protect the purchasers. It's also the reason why borrowers of social tokens see a large list of disclaimers that may favor the token issuer in case of a legal battle.

, or non-fungible tokens. NFTs are unique, which means that they have distinctive features that make them different from other units. On the contrary, social tokens are fungible, since each unit of the social token has a similar value.

For ease of understanding, you can compare an NFT with a work of art. Every painting is different. This is why every artwork — or NFT — differs in value. Social tokens, however, are just like any other cryptocurrency. You can compare them to 

, because the value of each BTC is similar to that of another BTC.

The two terms are often confusing, because several content creators monetize both NFTs and social tokens. For instance, an artist can use NFTs to monetize personal artwork, while also releasing a social token that gives the holder access to personal Q&A sessions or art lessons.

It's said that the first social tokens were launched somewhere in 2020. WHALE is often called the first social token, launched by a private collector of NFTs, 

. Similarly, some credit Spencer Dinwiddie, the Brooklyn Nets point guard, who 

Irrespective of the debate, both of these early projects have found traction, which is a testament to the success of social tokens. Here’s a look at some other successful projects, in order to visualize the impact of social tokens on our lives.

As mentioned earlier, ALEX is a social token created by an aspiring entrepreneur, Alex Masmej, to finance his crypto-related projects. Before COVID-19, Masmej had founded the first successful crypto art–backed loan instrument, but couldn't gain the required momentum due to financial debacles he subsequently faced during COVID.

In a bid to work on a more sustainable project, he created the ALEX tooken and sold it to his followers in exchange for some of his future income for the next three years. The sale helped Masmej raise $20,000 in a mere 100 hours. During the crypto frenzy, the market value of ALEX exceeded $2 million, which reflects the utility of crafting such personal tokens.

The objective of the RAC token created by musician André Allen Anjos was to reward loyal fans by giving them access to various perks and exclusive content. Accordingly, 25,000 RAC were distributed to loyal fans, who had supported DJ RAC since his early days back in 2009.

 supporters also received a fair share of these tokens. In the future, subscribers to RAC can also benefit from the variety of perks reserved for its online communities. Since its launch, RAC has evolved into one of the most successful personal tokens to date.

Jaylen Clark, the UCLA basketball player, is the 

. By creating the JROCK token, Clark’s followers can interact directly with the player and help him sustain his career. Token holders can get early access to exclusive merchandise, ticket raffles, behind-the-scenes footage and workout videos. Since JROCK is traded on the secondary market, token holders can also benefit from an increase in its value.

GCR is the native token of research and investment firm Global Coin Research. The community uses the token to fund various investment initiatives. In turn, members have access to private seminars, where they can interact with NFT artists and invest in upcoming projects. The organization also arranges weekly hangouts for learners and investors. Since the launch, GCR has gained more than 30,000 members, who have contributed over $31 million to the project.

Launched in 2020, WHALE was created by a pseudonymous NFT collector known as WhaleShark. The value of the token is derived from WhaleShark’s personal NFT collection. As one of the most successful social tokens, it strikes a fine balance between wealth preservation and growth speculation. As of 2022, the collection is valued at $73 million, a phenomenal contrast to its original $500,000 market value.

STEEM is the native currency of the social platform,

. The project's goal is to let users earn by contributing to the development of the platform. Anyone can become a stakeholder by creating content and earning rewards in the form of STEEM.

According to the official website, the organization has distributed nearly $59 million in rewards to its contributors. Remarkably, the Steem platform processes more transactions than the Ethereum and Bitcoin blockchains combined.

Creating a social token is akin to building your own online community. It’s unlike anything you’ve experienced, because it allows both the content creator and token holders to work together in creating brand value. Instead of using social media to engage followers, content creators are more likely to use a social token to let everyone benefit from community engagement and potential price increases.

Moreover, social tokens aren’t going anywhere — because they have plenty of value and utility to them. Take WHALE, for example. The market value of the token has actually increased more than the underlying NFTs upon which the token is built. Similarly, Rally has already become the leading global platform for anyone to create social tokens with ease.

There’s no doubt that we're quickly moving away from Web 2.0 to Web 3.0. Existing Web 2.0 social platforms actively control their members — without benefiting either influencers or users. It's just a matter of time before the Web 3.0 "token economy" takes over from social platforms.

Social Tokens: Promoting Community Benefits & Fair Monetization

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