ICOs are a popular way for crypto start-ups to generate funds. While some ICO crowdfunding ventures are successful, many do fail. To date, there is still no comprehensive knowledge of the different types of business models and their implications for token-based ecosystems, and research lacks a comprehensive understanding of how token-based economies influence collaboration.
But there is no denying that blockchain technology has the potential to revolutionize business models. Despite the growing importance of digital ecosystems in recent years, token-based ecosystems have received little attention. The biggest benefit of platform-based business models is an increase in network effects.
A platform is successful if it generates value for its users. This value depends on the number of offerings in two-sided and multi-sided markets for the respective market sides. This impact is described as the network effect.
Strategies to increase network effects at Continuum are:
- Personalization of service (courses, rewards)
- Referrals from satisfied users (trust mechanisms)
- Ease of use and ease of earning compared to other “2Earn” platforms
The biggest challenge when integrating tokens into platform-based businesses is increasing the value of the tokens. Another important aspect for future research lies in the symbioses between the collaboration within the stakeholders of an ecosystem and the value of the associated tokens. What influence does a token's depreciation have on the token-based ecosystem?
Unlike many start-ups simply replicating a popular crowdfunding strategy (ICO), Continuum has a clear plan of action for maintaining and increasing the value of the UUM token as an actor within the ecosystem.