Asset tokenization is the new trend of 2018. It’s now rapidly becoming a widespread instrument all over the blockchain world. More and more people are engaging in developing and using this technology. The reason behind is the fact that tokenization has become an ideal instrument for digital assets and new rapidly growing markets.
On the 6th of February, BANKEX’s MediaToken project launched the service that is going to enable tokenization of Instagram accounts as well as the capacity to profit from future advertising on the account. Turismospain was the first Instagram account to use this innovative tool – its tokens have already been issued and they are being traded on the exchange.
Before MediaToken, there was no efficient infrastructure on which a fair and transparent market can be built for bloggers and advertisers in social media. Hence the problem of unequal distribution of advertising funds among popular accounts. According to people who work on this project, MediaToken will provide an objective valuation of any Instagram account and calculate the amount of funding it may be able to attract.
BANKEX CEO Igor Khmel said:
The challenge faced by Instagram bloggers is the limited sources of financing and the non-transparent methods of pricing. For example, some of the users get million of subs and start earning up to 500 000 dollars per post. But the income gap among bloggers is huge: some have millions of subs while some are dreaming for a few thousands. But bloggers, who have fewer less than 100 000 subs, can be more appealing to some advertisers than accounts with over 1 million followers
The working mechanism of MediaToken is really simple: an Instagram account is being put on the blockchain. This process is called tokenization. The technology would process the data of the account and estimate the amount of funding it may be able to attract from investors. Then, MediaTokens are issued and listed on the BANKEX Exchange where they can be purchased by investors all over the world. MediaToken is now accepting applications for their service and is open for cooperation both bloggers and investors.
Instagram was chosen by MediaToken as the first social media platform for account tokenization for a reason – nowadays it is one of the fastest growing social networks in the world. Instagram doubled its subscribers in 2017 compared to 2016 and made about $ 4 billion due to its new features like Stories and new filters. Moreover, the advertising revenue is expected to reach $ 10 billion in 2019.
What is the Bottom Line?
MediaToken is among the first steps to tokenization of the world. Technically, it gives every blogger a clear way to achieving their goals, regardless of the desired quantity of subs. The system effectively evaluates the exact possible amount of funds for allocation. Afterwards, a blogger uses it for the promotion of his/her account, while the system ensures investor’s profit after the promotion. Tokens could be sold on the BANKEX exchange. A pretty simple procedure to secure value for all the participants.
What will the tokenization of Instagram mean for bloggers on the platform? Will it help bridge the income gap? Let us know your thoughts in the comments below.
Images courtesy of BANKEX/MediaToken, Instagram