May 07, 2021

Tokenizing Real World Business

Not so long ago to invest in a new crypto project you had to evaluate the new protocol or exchange. Now more and more regular businesses are tokenizing themselves. We looked at a few of them to see how much sense they make.

Coin sales have been a customary way for new crypto projects to raise funds. They have had many forms and names - ICO, IDO, ILO, even LGE - but the essence was always putting a number of tokens on the market and getting funds to further grow the project in return. Currently more and more regular non-crypto native businesses are going in the same direction. They are launching on the hottest project launchpads side by side with new protocols, exchanges or NFT marketplaces. We have analyzed a few of them to learn if they just approach tokenization as an easy fundraising method or do they use the token to really strengthen their business model.

1️⃣ Melalie

The company calls itself an open mobility marketplace. It has just launched its product - a p2p car rental business in the Netherlands. The project did a public token sale on three launchpads in April and a private sale earlier this year.

It is hard to tell how will the token contribute to the company‘s business model. There is no explicit mention of it in its announcements. The car rental business is difficult and new entrants to the market had it tough even before Covid put the clamps on travel. While p2p car rental could have a beneficial impact on the environment it is hard to see how a token could help the project succeed in a very tough market where many before have failed.

2️⃣ Greenheart CBD

Greenheart is an Irish supplier of cannabis CBD products. It sold its token on two launchpads in April. The team wants to create an ecosystem involving farmers who would be enabled to grow cannabis and compensated with the token for their products.

Cannabis is a growing market worldwide, so the Greenheart business fundamentals make more sense than the previous project. Also their token seems to have some utility, to simplify the whole money circulation and value exchange aspect. While it is always necessary to do your own research, at least basic business logic checks out in this case.

3️⃣ Egoras

The project operates a microfinance business in Nigeria. It distributed its tokens on four launchpads in April. The team aims to decentralize the business and turn it into a DAO (Decentralized Autonomous Organization).

Microfinancing is a perfect fit for tokenization. Decentralizing decisions to provide a microloan and the financial consequences of non-payment is best realized by tokens. Egoras is an interesting cross between regular finance and DeFi. The profitability of the whole enterprise and by extension the token is someting everyone should analyze by thesmelves.

 

As you see tokenization is applied within „regular“ business in diverse environments. Sometimes it enriches the business, sometimes it is more of a marketing gimmick. When looking at such tokens you‘d be well advised as a start to understand whether it‘s the former or the latter.