Author David Passiak Praises SocialFlow’s 2-Token Approach

Author David Passiak penned an article posted on Hackernoon looking at the current state of Blockchain.  He posits that the initial shine has worn off and now is the time for the hard work of business building.  He holds up our two token model as the future of sustainable blockchain businesses:

The race is on to build functional blockchain products and real companies worthy of attracting investment. A new two-token model may become the norm, where companies sell security tokens for a raise which can be traded similar to stocks and the current alt-coin exchanges, and then issue utility tokens for use on their platforms, which function like stable coins having a fixed value that doesn’t go up or down.

For example, look at SocialFlow’s current security token sale for the Universal Attention Token. An existing company with a $100m+ valuation, they aim to use the blockchain to disrupt conventional advertising. Margins for ads are small — they cannot have a utility token fluctuate in value. Their utility token will function like a stable coin within its new ad publishing platform.

SocialFlow probably could have raised an equity round and closed it entirely from existing investors. Instead, they chose to do an STO as a way to show faith in the mechanics of a working blockchain example. Their use of blockchain case (utility token, built on the Stellar Consensus Protocol) and securitization case on the blockchain isn’t tapping into a fad. It’s the right path forward from a company positioned to disrupt the global advertising market.

Read the full article here.

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