Udi Wertheimer Profile picture
Aug 24, 2018 7 tweets 2 min read Twitter logo Read on Twitter
1/ You don't need a "utility token" and a blockchain to help incentivize growth. You eo need a product that people care about.

The gaming phenomenon Fortnite has an in-game currency called vBucks. It isn't using a blockchain, isn't traded anywhere, and has no speculative value.
2/ You buy it in-game with a credit card, and can spend it on virtual items that people love buying for some reason.
Just like with "utility tokens", Epic incentivizes players to engage by giving away vBucks for playing, winning, and recently for activating 2FA. #cryptoeconomics
3/ By May, Epic sold $1.2 BILLION of vBucks since the game's launch. It's growing fast and set to reach $2B by the end of the year.
That's way more than most ICOs managed to sell, matching even Telegram and short of only the EOS sale (for now. Fortnite revenue keeps growing).
4/ And unlike utility tokens, vBucks aren't a liability. They're revenue. People don't keep vBucks and speculate on their future value. They immediately use them to buy virtual shoes and gloves. And yes, you *can* actually buy in-game products and services without a blockchain.
5/ No Fortnite player ever has complained about Epic stealing vBucks away from them and that they demand handling them with private keys. No one complained that Epic isn't sticking to the whitepaper when they create more vBucks in various promotions. You know why?
6/ Because people are having fun. They get to use a great product that provides actual value. Unlike pretty much ALL "blockchain projects", Fortnite isn't about speculating on the in-game currency, that's just a mechanic! Fortnite is about having fun with friends.
7/ Epic doesn't have to bullshit people about vBucks being the currency of everything, and about their database servers revolutionizing gaming forever. No one cares, because people are enjoying themselves.

Utility tokens are for when you don't, and won't have a valuable product.

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More from @udiWertheimer

Jul 25, 2018
$XRP is a utility token (aka fairy tale token). Here’s why:

1/ What’s distinct about utility tokens (a dying breed), is that scammy/stupid “entrepreneurs” present them as some unique way to make a service work, while in reality they’re just an inefficient means of value transfer
2/ In systems that use utility tokens for facilitating services (well, theoretically, those systems never actually meaningfully exist), the token could be replaced with any other means of value transfer. I’m not even talking about BTC. Even PayPal would be better.
3/ They routinely tout stupid “features” like shorter block times and smart contracts, as if a consumer looking for shoes on the blockchain cares about this shit (that’s a real utility token that actually exists btw) and isn’t going to just buy shoes on Amazon with a credit card.
Read 13 tweets

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