I’m of the opinion that tokens when applied to digital art typically aren’t providing much value, aside from say bragging rights / social status since digital art can be copied and viewed without owning the token. One might argue that these tokens help pay artists but 1) if that’s all one cares about then donating to them directly will give them more money since transaction fees are cheaper and 2), I haven’t looked into this directly, but it would seem token resale fees given to artists are not enforceable since they could be worked around by having a holding contract that gets traded instead. It just doesn’t seem like digital art tokens are providing much value. Now if they start to be used in some enforceable way such as in a DRMd display then this would be a form of underlying value but why not use a non DRMd display? If it’s anything like movies and music then the answer probably revolves around convenience and risk.
Then there is the more general trend of treating tokens like these as investments where the value gets driven up and, appears to me, detached from any sense of underlying value. So the only way for the sale value of these tokens to hold is to have some one else willing to buy it. But if there is no underlying value then it’s not clear to me how this can continue indefinitely.
But if a token is providing some underlying value like when it is exchangeable for a service or currency and the token’s value is close to it’s underlying value then I don’t think they are scams or at least less likely to be so.
What are your thoughts on this yrral?
For context: I was initially quite interested in the whole distributed ledger stuff from a technical perspective but stopped keeping up with it for the past couple of years or so.