New “extraordinarily powerful” sector of crypto assets to enter several industries: macro guru Raoul Pal

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Real Vision CEO and macro guru Raoul Pal said he has identified the next sector of the crypto market that will infiltrate the general public.

In a new interview on the Angelo Robles podcast, Pal says that social tokens, or crypto assets that act as equity capital for blockchain-based communities, will soon find their way into many popular industries, such as sports and the music.

“Social tokens are a way to organize complex adaptive societies, that is, large communities. [They] create a reward and incentive system to drive network growth by being a good member of the community and creating value [for] the community.

The behavioral economics of a social token is extraordinarily powerful, and we’re going to see it at scale in sports, music, guilds, skills, it [are] so many different use cases that we’re going to see go into.

According to Pal, it may not always be clear which coins are considered ‘social tokens’ because most crypto assets, including crypto king Bitcoin (BTC) and top altcoin Ethereum (ETH), may have growing savings on them.

“Bored Ape Yacht Club is basically a social token for owners of Bored Ape Yacht Club. BTC is basically a social token for people who believe in Bitcoin. People don’t like to say that, but that’s really what these things are.

And then what happens with the social token [is] you can build an economy on it. Ethereum would be another. So they’re utility tokens in that regard.

They are composable, which means you can create items on them, but they [also] have value to your community, and if your community is vibrant and growing, the value of social tokens can increase. It’s a very attractive way to create a layer of value beyond equity that doesn’t exist.

As a result, the macro expert says social tokens are also used by large companies to create a distinctive brand.

“In terms of branding, you see Nike right now and Adidas entering the NFT space. What does that mean? This is the brand on a balance sheet right now. [being] intangible. Once you scan the mark, it becomes tangible. And that’s what these tokens do.

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