4 easy ways to value a crypto token? A simple guide on how to value a crypto token in 4 simple ways 👇👇👇

Before seeing the 4 ways here's a quick thing you should read down 👇👇👇
Imagine you have a dollar to invest and you can choose 2 options; a public cloud service layer or a layer 1 blockchain.
How do you decide which is more attractive?
How does a token differ from equity?
The answer is that tokens can act remarkably like equity if they are structured in the right way. In addition, tokens offer one benefit beyond equity: utility

Now let's see the 4 ways:-
Photo by Giorgio Trovato on Unsplash1. Voting & Dividend
A token provides voting rights when it is a governance token that governs a DAO (Decentralized Autonomous Organization).
A DAO is the governance organization of a crypto company. It functions as a board and shareholder base.
A DAO manages the roadmap and the treasury of the business and evaluates the idea of the business that are submitted by the community.
The DAO elects to distribute profits from the treasury, a token holder would receive a share of those earnings.

1. Minting
   A company's board can create more stock simply by passing a motion. These new shares are often granted to employees as compensation.
   Tokens work similarly, though it's called minting. If I work on behalf of a crypto company, I receive tokens as a part of my compensation.
   Being an employee isn't necessary to mint. I can also mint token if I participate in the network to help it along.
   If I operate a Solana validator to verify transactions or stake Ethereum to verify transactions, each network would reward me with networks.
   The network pays members with tokens much the same way a corporation pays employees in stock.
   Public companies can choose to increase or decrease the number of shares outstanding through pool expansion or share buybacks. Tokens have their mechanism for controlling the total quantity of tokens.
   Some tokens are inflationary (overtimes each token is worthless) or others are deflationary(overtimes each token is worth more).

2. Utility
   Unlike equity, tokens have a utility. I can use an Ethereum token to transact: buy an NFT, sell an NFT, execute a Defi contract to exchange one token for another.

3. Yield
   I can lend the stock to short-sellers in a practice called securities lending for stock.
   If a trader would like to short stock, they must borrow it from someone. For this service, the trader pays a fee communicated as an interest rate.
   The same is true for tokens.
   Traders can borrow them to sell them short and pay a fee.

Thanks for reading the article 😊😊.