New ‘Extraordinarily Powerful’ Sector of Crypto Assets To Penetrate Multiple Industries: Macro Guru Raoul Pal

Real Vision CEO and macro guru Raoul Pal says that he’s identified which sector of the crypto market will infiltrate the mainstream next.

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

“Social tokens are a way to organize complex adaptive societies, i.e. big communities. [They] create a reward system and incentivization to drive network growth by being a good community member and creating value [for] the community.

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

According to Pal, it may not always be so clear which coins are considered “social tokens” as most crypto assets, including king crypto Bitcoin (BTC) and top altcoin Ethereum (ETH), can have growing economies built on top of them.

“Bored Ape Yacht Club, that’s basically a social token for Bored Ape Yacht Club owners. BTC is essentially a social token for people who have beliefs 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 top of it. Ethereum would be another one. So they are utility tokens in that respect.

They’re composable which means you can build stuff on top of it, but they [also] have a value to your community, and if your community is vibrant and growing then the value of social tokens can go up. It’s a very attractive way to build a layer of value above equity that doesn’t exist.”

As a result, the macro expert says that social tokens also serve as a way for big-name companies to create a distinctive brand.

“In terms of brand, you’re seeing Nike right now and Adidas moving into the NFT space. What is that all about? This is about the brand on a balance sheet right now [being] intangible. Once you digitize the brand – it becomes tangible. And that’s what these tokens do.”

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CoinList ‘Rally’: 40K investors rush to buy RLY despite price pump

Social token platform Rally has completed its first “liquid token sale” on crypto asset issuance platform CoinList, with 40,000 investors snapping up RLY tokens for $0.60 each between April 1 and April 4.

The sale saw tokens distributed to investors at a set price despite RLY trading on exchanges since October, 2020. Token pricing was determined by a 20-day trailing average from March 11, 2021 to March 30, 2021 minus a 30% markdown to compensate for the RLY being locked up for 12-month a linear release.

However, investors had the opportunity to purchase RLY for less than half the price offered by CoinList on the open markets just five weeks ago.

The sale was approved through community governance in mid-March, with the 40 million RLY sodl having previously been allocated to Rally’s Community Treasury. The ballot saw 100% of the 7,400 participating token holders vote in favor of the sale. Nearly 30% of RLY are now held by Rally’s team and investors.

News of the sale appeared to drive bullish momentum for RLY, which has gained nearly 250% since trading for less than $0.29 on March 12. RLY consistently traded between $0.25 and $0.35 from mid-January until mid-May. As of this writing, RLY last changed hands for $1.

RLY/USD: CoinGecko

Half of the tokens will become tradable on Oct. 4, after which the remaining RLY will unlock gradually on a monthly basis. In a blog post on April 12, Coinlist revealed the offering generated $22 million. Investments were limited to $1,000 per person, with nearly two-thirds of the offering’s 115,000 registrants missing out on participating.

Rally is a blockchain-based social network that allows content creators to launch social tokens.

The social token sector — non-fungible tokens issued by content creators, brands, and communities — has been on the rise in 2021, with RLY and WHALE representing 83% of the social token market cap pack with $240 million combined.