Written by: Joshua B. Lee, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
New means of monetizing content are emerging. Meet creator coins: the simplified blockchain technology revolutionizing how content creators engage with their following and earn a living.
From wellness coaches to gamers to travel vloggers, a range of creators are embracing digital currency to offer real-world value to their audiences in the form of unique perks, exclusive experiences, and more.
But can a Creator Coin be high up there, like Bitcoin?
Back in July 2010, Bitcoin first traded for $0.0008 to $0.08 coin.
Then, few people knew about it and its capabilities. And maybe that was why Laszlo blew away over $600m worth of Bitcoin.
In 2010, Laszlo Hanyecz bought two pizzas in Jacksonville Florida, for 10,000 BTC (Bitcoin). If Laszlo had held onto that amount of Bitcoin till today, its worth is over $600m.
Now a new coin has emerged for creators, called Creator Coin. Also known as a social token.
What is Creator Coin?
Creator coins are a form of cryptocurrency. A cryptocurrency is a digital form of currency that can be used to replace traditional currency. Traditional currencies are becoming more cumbersome as technology evolves. Wire transfers and credit cards are becoming outdated, and middlemen and brokers typically take a chunk of each transaction.
Creator coins are developed by individuals or businesses as a way to directly benefit both the individual/business and its supporters without a broker or a big fee. These can be purchased with traditional currency (e.g., dollars or credit) or with other types of cryptocurrencies.
They are called creator coins because each individual or business can essentially create its own currency. They are used specifically in the organization or (best-case scenario) across organizations that take cryptocurrency.
Although backed by blockchain technology, Creator Coins are different from cryptocurrency.
The Difference between Creator Coin and Cryptocurrency
The uses of cryptocurrencies are not attached to or restricted to a particular individual, business, or platform. Creator Coin is not the same. You only use it to buy the products and services of its creator or hold it after you buy it.
One of the reasons behind Creator Coins is to move creators — writers, influencers, performers, artists, or anyone who offers digital products and services — closer to each other.
That it is a win-win for both the creator and his followers or subscribers. Here’s how it works.
The more people buy your Creator Coins, the higher the value. The fewer people buy it, the lesser the value. It is all about speculating on a person’s reputation.
If someone's reputation goes up, there will be high demand for his Creator Coins, so the Creator Coin value increase. And if it goes down, the person’s Creator Coin falls.
The History of Creator Coins
Creators and entrepreneurs have long struggled to fund their endeavors. From hawking merch online to setting up GoFundMe accounts, finding a way to keep cash flowing in the direction of the vision has been problematic.
As an option, programs like Patreon and Substack allowed supporters to directly pay creators for access to specialized content. Creators could also get paid based on channel subscriptions and video views on YouTube and other social media platforms.
The problem with these types of systems is that the creators are still not in control. Each of these services, though valuable in its own way, control how much a creator gets. Patreon and Substack take a percentage of each subscription, and social media algorithms control how many people view a page.
Understanding this challenge, Rally launched Creator Coin in 2020, changing the way that creative people interact with fans and supporters. Instead of purchasing a t-shirt, an artwork, or a download – with a cut going to a streaming service or a manufacturer – creator coins allow supporters to invest in people and businesses directly. Custom-branded currencies give supporters access to exclusive content, private communities, and other benefits.
Creator coins can be given in exchange for referrals, purchased directly and traded, or can function in much the same way as points earned on a reward credit card. These points can be exchanged for cash back or other products. Reward cards are designed to build loyalty and create customers who are enthusiastic about the program. The same is true for creator coins.
Creator coins vs. NFT
There is a lot of confusion surrounding the difference between creator coins and NFT (non-fungible tokens).
The easiest way to differentiate between the two is this: while NFTs are unique, creator coins can have the same value as other items.
In one sense, creator coins function like airline points or a traditional dollar. You can buy additional airline miles for a set price, and you can trade a dollar for four quarters or ten dimes – anything with equal value.
An NFT is more like digital ownership of something, a bit like buying a piece of art or the original master recording of a song. And with an NFT, you have a digital record that you own it.
How Creator Coins rely on Ethereum
Blockchain is like a digital ledger of transactions. When cryptocurrency, like a creator coin, gets traded, the trade is checked and added to the network in a block with a unique code called a hash.
This block also holds the hash of the previous trade and is then connected to other blocks. Thus, the blockchain is created. Each hash is ordered in a specific way to create a digital record of transactions that is nearly impossible to change or alter.
Ethereum is not only home to its own cryptocurrency (Ether) but is also the decentralized, open-source blockchain support for creator coins (among other cryptocurrencies). The network validates blocks every 12 seconds (Bitcoin evaluates every ten minutes), which means transactions are secure and nearly instantaneous.
Who is using Creator Coins?
Everyone from Tiger King’s Carole Baskin to American rock band Portugal The Man to Twitch streamer Allie Strasza are using creator coins.
Assessing the value of Creator Coins
Creator coins follow the basic physics of investing: the more fans that buy your creator coins, the higher the value. The fewer, the lesser the value.
Essentially, creator coins speculate on a person’s reputation. If someone’s reputation goes up, there will be high demand for their creator coins, so the creator coin value increases. And if it goes down, the person’s creator coin falls. Buyers can hold creator coins and profit off of them as the respective creator rises in popularity, increasing the value of their coin.
The Potential for Creator Coins to build (or bring together existing) Communities
Creator Coins build community in the same way that gathering people together build community. Consider what it looks like when associations have meetings. Members share stories, update each other on what they are doing, ask for help, and share advice. Creator coins do the same thing.
When you gain access to this new form of cryptocurrency, you are invited to participate more fully in the association. Depending on how the program is structured, creator coins can be traded for things like:
Access to one-on-one trainings
Perks during annual meetings
Special courses and content
Creator coins reward the most active and supportive members of an association. They also build a source of capital that is independent of any other monetary system or social platform.
Creator coins are not considered in the same category as stocks. Yet, acquiring Creator Coins is a bit like diversifying your assets – both human and financial.
Why Join a Creator's Economy?
You can start enjoying the benefits of owning a piece of a creator's economy by simply purchasing a Coin.
Connect With Creators
Deepen your connection with the creators you care about while interacting in new ways.
Unlock Benefits
Get early and exclusive access to content, experiences, drops, and more by buying, holding, and redeeming Coins.
Be a Part of a Community
Coins are not limited to relationships between creators and their community. Exchange Coins with anyone without fees and builds products that benefit your community.
Mark Your Calendars
This is just the beginning. Creator coins are a piece of what Web3 is all about and guess who’s getting into the mix...YEP, Standout Authority and the B Lees!
We’re launching our $SOA Coin on Rally.io on May 12th and hosting a special event at 10amCST where we’re talking all about ‘What is a Creator Coin and How You Can Benefit From It In The Creator Economy’.
You don’t want to miss this event because we’ll be GIFTING FREE $SOA COIN to those who attend!
Joshua B. Lee, Executive Contributor Brainz Magazine
They call me “The Dopamine Dealer of LinkedIn” and I’m proud of that nickname. I founded Standout Authority in 2014, so I can work with entrepreneurs, business owners and professionals like you to help you humanize your professional or company brand on LinkedIn.
