Cryptocurrency Adoption: Corporate Coins
It is only a matter of time before this gets a lot of discussion.
The idea for this article stems from the fact that Walmart is looking to make moves in the cryptocurrency game. While their intentions are not known at this point, we can see how this is just another major corporation in the growing list that is heaving investigating cryptocurrency.
Here is the headline on Beingcrypto.com:
The company is seeking to develop a road map for cryptocurrencies according to the article.
Walmart, one of the world’s largest retailers, is looking for a product lead for its digital currency and cryptocurrency division, according to a recent job posting.
The company did file a patent in the past for its own currency. Not much came of it and there is no word whether this new position is to move the company in that direction or simply looking at accepting cryptocurrency as payment for its goods.
Perhaps at this time, it is only to create a payment strategy although it is unlikely they are going to overlook the opportunity to tokenize their business.
Corporate Coins
Here we are seeing another avenue of cryptocurrency development that is going to take off.
This is not much different from some of the other types of tokens we discussed. Ultimately, this is really just another Social Token (also called a Community Token). The premise is the same as outline in Social Tokens: The Biggest Cryptocurrency Market.
Obviously, Walmart has a huge "community". It is the largest company in the world by revenues so it interacts with millions of people a day. Sadly, like most of the present system, it is an adversarial relationship. Walmart is trying to squeeze the most money out of each customer while the individual is seeking the most for least.
Through the process of tokenization, a company can really increase the interaction with its community. With some creativity, the idea is to enhance the experience of those holding the tokens. Certainly, many will be after profitability. However, there are many layers to the operation that can be included in the value of the token.
As companies start to expand their offerings through the embracing of technology, they can roll out more projects to support the value of the token. Coupled with Walmart's reach in terms of retail, this could be huge.
This company does not have the userbase of Facebook. Yet, there are still hundreds of millions of people who deal with Walmart (and its affiliates) on a regular basis. It is a grand opportunity for tokenization as a means of enhancing the interaction with its community.
Path To Mass Adoption
We see where this can be a quick path to mass adoption.
If a company like Walmart embraces tokenization and brings out it own coin, we will see things change instantly. There is one piece to the puzzle that needs to be there: the company should seek to give to the token holders. This is not about a money grab like many so far have used cryptocurrency. There is a grand opportunity to change their relationship with their customers and truly make them partners.
Tokenization creates another layer above equity. The later gives people a piece of earnings and value of the company whereas the former is about generating a new form of engagement. This level is untested since it is so new. However, corporations can really leverage this to take customer loyalty and dedication to a much higher level.
Instead of being something that is used for profit, the company can seek to keep adding more to token value. Those who are holding it will have a great deal more vested interest in the brand as opposed to those who do not.
Of course, exposing a couple hundred million people, primarily in North America, to tokenization would be a huge boom for adoption. If done properly, the Walmart economy could get very large. The company already generates hundreds of millions of dollars each year in revenues. Tokenization would enable to add a new economic layer.
Another advantage is that Walmart has the resources to get the applications developed that are needed to make it a simple process. Ease of use is still missing and is vital to mass adoption. We can easily see how, if a company like Walmart developed an easy-to-use application, that is could incentivize it customers in so many different ways.
This does, however, go well beyond the rewards token concept. IT is something that will have value on the open market. Hence it is up to Walmart and the other members of the community to expand its reach, thus enhancing the value.
Instantly, we will see a large portion of North America gain access to the token process. For many, if not most, it will open up the door to further expansion in this area. As other companies started to embrace their own customer bases and turn them into communities, a new economic layer forms.
Corporations are going to have to move far beyond the idea of just looking at cryptocurrency as a payment mechanism. At the same time, the old rewards model, while still valid, needs to be surpassed.
This is going to require developing an entirely new approach. It starts with the concept of the corporate token really being about the community. Hence, it fits under the social token category.
Corporate Coins could be an instant hit. This is something that could spread as the first few see success. We live in a copycat world.
If Walmart embraces this, we can bet that many others will follow rapidly.
And all this is good for cryptocurrency.
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