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Stop Guessing, Start Trading: The Token Metrics API Advantage

Announcements

Big news: We’re cranking up the heat on AI-driven crypto analytics with the launch of the Token Metrics API and our official SDK (Software Development Kit). This isn’t just an upgrade – it's a quantum leap, giving traders, hedge funds, developers, and institutions direct access to cutting-edge market intelligence, trading signals, and predictive analytics.

Crypto markets move fast, and having real-time, AI-powered insights can be the difference between catching the next big trend or getting left behind. Until now, traders and quants have been wrestling with scattered data, delayed reporting, and a lack of truly predictive analytics. Not anymore.

The Token Metrics API delivers 32+ high-performance endpoints packed with powerful AI-driven insights right into your lap, including:

  • Trading Signals: AI-driven buy/sell recommendations based on real-time market conditions.
  • Investor & Trader Grades: Our proprietary risk-adjusted scoring for assessing crypto assets.
  • Price Predictions: Machine learning-powered forecasts for multiple time frames.
  • Sentiment Analysis: Aggregated insights from social media, news, and market data.
  • Market Indicators: Advanced metrics, including correlation analysis, volatility trends, and macro-level market insights.

Getting started with the Token Metrics API is simple:

  1. Sign up at www.tokenmetrics.com/api
  2. Generate an API key and explore sample requests.
  3. Choose a tier–start with 50 free API calls/month, or stake TMAI tokens for premium access.
  4. Optionally–download the SDK, install it for your preferred programming language, and follow the provided setup guide.

At Token Metrics, we believe data should be decentralized, predictive, and actionable. 

The Token Metrics API & SDK bring next-gen AI-powered crypto intelligence to anyone looking to trade smarter, build better, and stay ahead of the curve. With our official SDK, developers can plug these insights into their own trading bots, dashboards, and research tools – no need to reinvent the wheel.

Research

Tron (TRX) Price Prediction to 2027: Scenario Ranges, Scores and Key Drivers

Token Metrics Team
6 min read

Why 2026 Looks Bullish, And What It Could Mean for TRX

Why 2026 Looks Bullish, And What It Could Mean for TRX

The crypto market is shifting toward a broadly bullish regime into 2026 as liquidity improves and risk appetite normalizes.

Regulatory clarity across major regions is reshaping the classic four-year cycle, flows can arrive earlier and persist longer.

Institutional access keeps expanding through ETFs and qualified custody, while L2 scaling and real-world integrations broaden utility.

Infrastructure maturity lowers frictions for capital, which supports deeper order books and more persistent participation.

This backdrop frames our scenario work for TRX.

The bands below map potential outcomes to different total crypto market sizes.

Use the table as a quick benchmark, then layer in live grades and signals for timing.

  

Current price: $0.2971.

How to read it: Each band blends cycle analogues and market-cap share math with TA guardrails. Base assumes steady adoption and neutral or positive macro. Moon layers in a liquidity boom. Bear assumes muted flows and tighter liquidity.


TM Agent baseline: Token Metrics TM Grade for $TRX is 19.06, which translates to a Strong Sell, and the trading signal is bearish, indicating short-term downward momentum.

Price context: $TRX is trading around $0.297, market cap rank #10, and is down about 11% over 30 days while up about 80% year-over-year, it has returned roughly 963% since the last trading signal flip.

Live details: Tron Token Details → https://app.tokenmetrics.com/en/tron 

Buy TRX: https://www.mexc.com/acquisition/custom-sign-up?shareCode=mexc-2djd4 



Key Takeaways

Scenario driven, outcomes hinge on total crypto market cap, higher liquidity and adoption lift the bands.

TM Agent gist: bearish near term, upside depends on a sustained risk-on regime and improvements in TM Grade and the trading signal.


Education only, not financial advice.



Scenario Images

8T:   

16T:   

23T:     



Why Consider the Indices with Top-100 Exposure

Diversification matters.

Tron is compelling, yet concentrated bets can be volatile.

Token Metrics Indices hold TRX alongside the top one hundred tokens for broad exposure to leaders and emerging winners.


Our backtests indicate that owning the full market with diversified indices has historically outperformed both the total market and Bitcoin in many regimes due to diversification and rotation.

Get early access: https://docs.google.com/forms/d/1AnJr8hn51ita6654sRGiiW1K6sE10F1JX-plqTUssXk/preview 


If your editor supports embeds, place a form embed here. Otherwise, include the link above as a button labeled Join Indices Early Access.



What Is Tron?

Tron is a smart-contract blockchain focused on low-cost, high-throughput transactions and cross-border settlement.

The network supports token issuance and a broad set of dApps, with an emphasis on stablecoin transfer volume and payments.

TRX is the native asset that powers fees and staking for validators and delegators within the network.


Developers and enterprises use the chain for predictable costs and fast finality, which supports consumer-facing use cases.



Catalysts That Skew Bullish

• Institutional and retail access expands with ETFs, listings, and integrations.
• Macro tailwinds from lower real rates and improving liquidity.
• Product or roadmap milestones such as upgrades, scaling, or partnerships.



Risks That Skew Bearish

• Macro risk-off from tightening or liquidity shocks.
• Regulatory actions or infrastructure outages.
• Concentration or validator economics and competitive displacement.



Special Offer — Token Metrics Advanced Plan with 20% Off

Unlock platform-wide intelligence on every major crypto asset. Use code ADVANCED20 at checkout for twenty percent off.

AI powered ratings on thousands of tokens for traders and investors.

Interactive TM AI Agent to ask any crypto question.

Indices explorer to surface promising tokens and diversified baskets.

Signal dashboards, backtests, and historical performance views.

Watchlists, alerts, and portfolio tools to track what matters.

Early feature access and enhanced research coverage.

Start with Advanced today → https://www.tokenmetrics.com/token-metrics-pricing 



FAQs

Can TRX reach $1?

Yes, the 23T moon case shows $1.02 and the 31T moon case shows $1.31, which imply a path to $1 in higher-liquidity regimes. Not financial advice.


Is TRX a good long-term investment

Outcome depends on adoption, liquidity regime, competition, and supply dynamics. Diversify and size positions responsibly.

  



Next Steps

Track live grades and signals: Token Details → https://app.tokenmetrics.com/en/tron 

Join Indices Early Access: https://docs.google.com/forms/d/1AnJr8hn51ita6654sRGiiW1K6sE10F1JX-plqTUssXk/preview

Want exposure Buy TRX on MEXC → https://www.mexc.com/acquisition/custom-sign-up?shareCode=mexc-2djd4 



Disclosure

Educational purposes only, not financial advice. Crypto is volatile, do your own research and manage risk.



About Token Metrics

Token Metrics delivers AI-powered crypto ratings, research, and portfolio tools for every level of investor and trader seeking an edge.

Research

Bitcoin (BTC) Price Prediction 2025–2027: Scenario Ranges, Scores & Key Drivers

Token Metrics Team
6 min read

Bitcoin


TL;DR (not financial advice): Token Metrics scenarios put BTC between ~$177k–$219k in an $8T total crypto market, $301k–$427k at $16T, $425k–$635k at $24T, and $548k–$843k at $32T by ~2027.

Baseline long-term view from TM Agent: $100k–$250k if macro stays favorable; $20k–$40k downside in a prolonged risk-off regime.

Deep dive & live signals: Bitcoin Token Details
 → Want to buy BTC? Use our partner link: MEXC sign-up



Key Takeaways

Scenario-driven: BTC outcomes hinge on total crypto market cap. Higher aggregate liquidity/adoption = higher BTC bands.

Fundamentals strong: Fundamental Grade 89.53% (Tokenomics 100%, Exchange 100%, Community 84%).

Tech solid: Technology Grade 69.78% (Repo 79%, Collaboration 70%, Activity 63%).

TM Agent baseline: multi-year $100k–$250k with upside if institutions & macro cooperate; risk to $20k–$40k in a severe risk-off.

This article is education only; not financial advice.



BTC Price Prediction — Scenario Table (by ~2027)

Total Crypto Mkt Cap

Bear Case

Base Case

Moon Case

$8T

$176,934

$197,959

$218,985

$16T

$300,766

$363,842

$426,918

$24T

$424,598

$529,725

$634,852

$32T

$548,430

$695,608

$842,786

Current price when modeled: ~$115.6k.


How to read it: Each band blends cycle analogues + market-cap share math and applies TA guardrails.
The base path assumes steady ETF/treasury adoption and neutral-to-positive macro; moon adds a liquidity boom + accelerated institutional flows; bear assumes muted flows and tighter liquidity.


8T MCap Scenario

  


16T MCap Scenario

  


24T MCap Scenario

  


32T MCap Scenario

  



What Is Driving These Ranges?

1) Adoption & Liquidity (macro)

Spot ETF flows, corporate/treasury allocations, and global liquidity are the swing factors that push BTC between the $100k–$250k baseline and the higher scenario bands.

If real rates fall and risk appetite rises, the system can support $16T–$24T crypto, putting BTC’s base case in the $364k–$530k zone.


2) Supply Dynamics (halvings)

Programmatic issuance cuts keep the scarcity story intact; historically, post-halving windows have supported asymmetric upside as demand shocks meet slower new supply.


3) Network/Dev Health (scores)

Fundamental Grade 89.53% with perfect Tokenomics and Exchange access supports liquidity and distribution.

Technology Grade 69.78% (Repo 79%, Collaboration 70%) signals a mature, continuously maintained codebase—even if raw dev “Activity” cycles with market phases.



Year-Ahead Technical Guardrails (context)

With price recently around $115k, the $8T path implies a medium-term corridor of $177k–$219k if crypto caps stall near cycle mid.

Reclaims above prior weekly supply zones (mid-$100ks to high-$100ks) would bias toward the $16T track ($301k–$427k).

A macro/liquidity slump that undercuts weekly supports could revisit the TM Agent downside zone ($20k–$40k), though that would require a deep and sustained risk-off.

For live support/resistance levels and signals, open: Bitcoin Token Details.



Fundamental & Technology Snapshot (Token Metrics)

Fundamental Grade: 89.53%

Community: 84%

Tokenomics: 100%

Exchange availability: 100%

DeFi Scanner: 77%

VC Score: N/A

  


Technology Grade: 69.78%

Activity: 63%

Repository: 79%

Collaboration: 70%

Security: N/A

DeFi Scanner: 77%

  

Interpretation: Liquidity/access + pristine token mechanics keep BTC the market’s base collateral; tech metrics reflect a conservative, security-first core with steady maintenance rather than hype-driven burst commits.



Catalysts That Skew Bullish

ETF/retirement channel penetration broadens demand beyond crypto-native cohorts.
Treasury adoption (corporates, macro funds) increases “digital collateral” utility.
Macro easing / falling real yields can push total crypto mkt cap toward $16T–$24T.


Risks That Skew Bearish

Global tightening (higher real rates, QT) compresses risk premiums.
Regulatory shocks curtail flows or custody rails.
Vol/liquidity pockets amplify drawdowns; deep retests remain possible.



FAQs

Can BTC hit $200k–$250k?

Yes—those sit inside our $8T–$16T bands (base/mid), contingent on continued institutional adoption and constructive macro. Not guaranteed.

Could BTC reach $500k–$800k?

Those levels map to $24T–$32T total crypto scenarios (base → moon). They require a powerful liquidity cycle plus broader balance-sheet adoption.

What invalidates the bull case?

Sustained high real rates, policy tightening, or adverse regulation that throttles ETF/fiat rails—conditions aligned with the TM Agent $20k–$40k downside.



Next Steps

Track the live grade & signals: Bitcoin Token Details

Set alerts around key breakout/retest levels inside Token Metrics.

Want exposure? Consider our partner: Buy BTC on MEXC



Disclosure & disclaimer: This content is for educational purposes only and not financial advice. Cryptocurrency is volatile; do your own research and manage risk.

Research

Protecting Your Crypto Investment: Security, Safety, and Risk Management with Token Metrics AI Indices

Token Metrics Team
20 min read

Cryptocurrency's digital nature creates unprecedented investment opportunities—24/7 global markets, instant transactions, and direct ownership without intermediaries.



But this same digital nature introduces unique security challenges absent from traditional investing.



You can't lose your stock certificates to hackers, but you absolutely can lose your cryptocurrency to theft, scams, or user error.



Industry estimates suggest billions of dollars in cryptocurrency are lost or stolen annually through hacks, phishing attacks, forgotten passwords, and fraudulent schemes.



For many prospective crypto investors, security concerns represent the primary barrier to entry.

"What if I get hacked?" "How do I keep my crypto safe?" "What happens if I lose my password?"



These aren't trivial concerns—they're legitimate questions demanding thoughtful answers before committing capital to digital assets.



Token Metrics AI Indices approach security holistically, addressing not just portfolio construction and performance but the entire ecosystem of risks facing crypto investors.



From selecting fundamentally secure cryptocurrencies to providing guidance on safe custody practices, Token Metrics prioritizes investor protection alongside return generation.



This comprehensive guide explores the complete landscape of crypto security risks, reveals best practices for protecting your investments, and demonstrates how Token Metrics' systematic approach enhances safety across multiple dimensions.



Understanding the Crypto Security Threat Landscape

Exchange Hacks and Platform Vulnerabilities
Cryptocurrency exchanges—platforms where users buy, sell, and store digital assets—represent prime targets for hackers given the enormous value they custody.



History is littered with devastating exchange hacks including Mt. Gox (2014): 850,000 Bitcoin stolen, worth $450 million then, billions today; Coincheck (2018): $530 million in NEM tokens stolen; QuadrigaCX (2019): $190 million lost when founder died with only access to cold wallets; and FTX (2022): Collapse resulting in billions in customer losses.



These incidents highlight fundamental custody risks. When you hold cryptocurrency on exchanges, you don't truly control it—the exchange does.



The industry saying captures this reality: "Not your keys, not your coins." Exchange bankruptcy, hacking, or fraud can result in total loss of funds held on platforms.



Token Metrics addresses exchange risk by never directly holding user funds—the platform provides investment guidance and analysis, but users maintain custody of their assets through personal wallets or trusted custodians they select.



This architecture eliminates single-point-of-failure risks inherent in centralized exchange custody.



Private Key Loss and User Error
Unlike traditional bank accounts where forgotten passwords can be reset, cryptocurrency relies on cryptographic private keys providing sole access to funds.



Lose your private key, and your cryptocurrency becomes permanently inaccessible—no customer service department can recover it.



Studies suggest 20% of all Bitcoin (worth hundreds of billions of dollars) is lost forever due to forgotten passwords, discarded hard drives, or deceased holders without key succession plans.



This user-error risk proves particularly acute for non-technical investors unfamiliar with proper key management.



Token Metrics provides educational resources on proper key management, wallet selection, and security best practices.



The platform emphasizes that regardless of how well indices perform, poor personal security practices can negate all investment success.



Phishing, Social Engineering, and Scams
Crypto scams exploit human psychology rather than technical vulnerabilities.



Common schemes include phishing emails impersonating legitimate platforms, fake customer support targeting victims through social media, romance scams building relationships before requesting crypto, pump-and-dump schemes artificially inflating token prices, and fake investment opportunities promising unrealistic returns.



These scams succeed because they manipulate emotions—fear, greed, trust. Even sophisticated investors occasionally fall victim to well-crafted social engineering.



Token Metrics protects users by vetting all cryptocurrencies included in indices, filtering out known scams and suspicious projects.



The platform's AI analyzes on-chain data, code quality, team credentials, and community sentiment, identifying red flags invisible to casual investors. This comprehensive due diligence provides first-line defense against fraudulent projects.



Smart Contract Vulnerabilities
Many cryptocurrencies operate on smart contract platforms where code executes automatically.



Bugs in smart contract code can be exploited, resulting in fund loss. Notable incidents include the DAO hack (2016): $50 million stolen through smart contract vulnerability; Parity wallet bug (2017): $280 million frozen permanently; and numerous DeFi protocol exploits draining millions from liquidity pools.



Token Metrics' analysis evaluates code quality and security audits for projects included in indices.



The AI monitors for smart contract risks, deprioritizing projects with poor code quality or unaudited contracts. This systematic evaluation reduces but doesn't eliminate smart contract risk—inherent to DeFi investing.



Regulatory and Compliance Risks
Cryptocurrency's evolving regulatory landscape creates risks including sudden regulatory restrictions limiting trading or access, tax compliance issues from unclear reporting requirements, securities law violations for certain tokens, and jurisdictional complications from crypto's borderless nature.



Token Metrics monitors regulatory developments globally, adjusting index compositions when regulatory risks emerge.



If specific tokens face heightened regulatory scrutiny, the AI can reduce or eliminate exposure, protecting investors from compliance-related losses.



Best Practices for Cryptocurrency Custody and Storage

Understanding Wallet Types
Cryptocurrency storage options exist along a security-convenience spectrum. Hot wallets (software wallets connected to internet) offer convenience for frequent trading but increased hacking vulnerability.



Cold wallets (hardware wallets or paper wallets offline) provide maximum security but reduced convenience for active trading. Custodial wallets (exchanges holding keys) offer simplicity but require trusting third parties.



For Token Metrics investors, recommended approach depends on portfolio size and trading frequency.



Smaller portfolios with frequent rebalancing might warrant hot wallet convenience. Larger portfolios benefit from cold wallet security, moving only amounts needed for rebalancing to hot wallets temporarily.



Hardware Wallet Security
Hardware wallets—physical devices storing private keys offline—represent the gold standard for cryptocurrency security. Popular options include Ledger, Trezor, and others providing "cold storage" immunity to online hacking.



Best practices for hardware wallets include:

• Purchasing directly from manufacturers
• Never buying used
• Verifying device authenticity through manufacturer verification
• Storing recovery seeds securely (physical copies in safe locations)
• Using strong PINs and never sharing device access



For substantial Token Metrics allocations, hardware wallets prove essential.



The modest cost ($50-200) pales compared to security benefits for portfolios exceeding several thousand dollars.



Multi-Signature Security
Multi-signature (multisig) wallets require multiple private keys to authorize transactions—for example, requiring 2-of-3 keys. This protects against single-point-of-failure risks: if one key is compromised, funds remain secure; if one key is lost, remaining keys still enable access.



Advanced Token Metrics investors with substantial holdings should explore multisig solutions through platforms like Gnosis Safe or Casa.



While more complex to set up, multisig dramatically enhances security for large portfolios.



Institutional Custody Solutions
For investors with six-figure+ crypto allocations, institutional custody services provide professional-grade security including:

• Regulated custodians holding cryptocurrency with insurance
• Cold storage with enterprise security protocols
• Compliance with financial industry standards



Services like Coinbase Custody, Fidelity Digital Assets, and others offer insured custody for qualified investors.



While expensive (typically basis points on assets), institutional custody eliminates personal security burdens for substantial holdings.



Operational Security: Protecting Against Attacks

Password Management and Two-Factor Authentication
Basic security hygiene proves critical for crypto safety.



Use unique, complex passwords for every exchange and platform—password managers like 1Password or Bitwarden facilitate this. Enable two-factor authentication (2FA) using authenticator apps (Google Authenticator, Authy) rather than SMS which can be intercepted.



Never reuse passwords across platforms. A data breach exposing credentials from one service could compromise all accounts using identical passwords. Token Metrics recommends comprehensive password management as foundational security practice.



Recognizing and Avoiding Phishing
Phishing attacks impersonate legitimate services to steal credentials. Red flags include emails requesting immediate action or login, suspicious sender addresses with subtle misspellings, links to domains not matching official websites, and unsolicited contact from "customer support."



Always navigate directly to platforms by typing URLs rather than clicking email links. Verify sender authenticity before responding to any crypto-related communications. Token Metrics will never request passwords, private keys, or urgent fund transfers—any such requests are fraudulent.



Device Security and Network Safety
Maintain device security by:

• Keeping operating systems and software updated
• Running antivirus/anti-malware software
• Avoiding public WiFi for crypto transactions
• Considering dedicated devices for high-value crypto management



The computer or phone accessing crypto accounts represents potential vulnerability.



Compromised devices enable keyloggers capturing credentials or malware stealing keys. For substantial portfolios, dedicated devices used only for crypto management enhance security.



Cold Storage for Long-Term Holdings
For cryptocurrency not needed for active trading—long-term holdings in Token Metrics indices not requiring frequent rebalancing—cold storage provides maximum security.



Generate addresses on air-gapped computers, transfer funds to cold storage addresses, and store private keys/recovery seeds in physical safes or bank safety deposit boxes.



This approach trades convenience for security—appropriate for the majority of holdings requiring only occasional access.



Token Metrics Platform Security Features

No Custody Model
Token Metrics' fundamental security advantage is never taking custody of user funds. Unlike exchanges that become honeypots for hackers by concentrating billions in crypto, Token Metrics operates as an information and analytics platform. Users implement index strategies through their own chosen custody solutions.



This architecture eliminates platform hacking risk to user funds. Even if Token Metrics platform experienced data breach (which comprehensive security measures prevent), user cryptocurrency remains safe in personal or custodial wallets.



Data Security and Privacy
Token Metrics implements enterprise-grade security for user data including:

• Encrypted data transmission and storage
• Regular security audits and penetration testing
• Access controls limiting employee data access
• Compliance with data protection regulations



While Token Metrics doesn't hold crypto, protecting user data—account information, portfolio holdings, personal details—remains paramount.



The platform's security infrastructure meets standards expected of professional financial services.



API Security and Access Control
For users implementing Token Metrics strategies through API connections to exchanges, the platform supports secure API practices including:

• Read-only API keys when possible (avoiding withdrawal permissions)
• IP whitelisting restricting API access to specific addresses
• Regularly rotating API keys as security best practice



Never grant withdrawal permissions through API keys unless absolutely necessary.



Token Metrics strategies can be implemented through read-only keys providing portfolio data without risking unauthorized fund movement.



Continuous Monitoring and Threat Detection
Token Metrics employs active security monitoring including:

• Unusual activity detection flagging suspicious account access
• Threat intelligence monitoring for emerging crypto security risks
• Rapid incident response protocols should breaches occur



This proactive approach identifies and addresses security threats before they impact users, maintaining platform integrity and protecting user interests.



Managing Investment Risk Beyond Security

Diversification as Risk Management
Security isn't just about preventing theft—it's also about preventing portfolio devastation through poor investment decisions. Token Metrics' diversification inherently provides risk management by:

• Preventing over-concentration in any single cryptocurrency
• Spreading exposure across projects with different risk profiles
• Combining assets with low correlations reducing portfolio volatility



This diversification protects against the "secure wallet, worthless holdings" scenario where cryptocurrency is safely stored but becomes valueless due to project failure or market collapse.



Liquidity Risk Management
Liquidity—ability to buy or sell without significantly impacting price—represents important risk dimension. Token Metrics indices prioritize liquid cryptocurrencies with substantial trading volumes, multiple exchange listings, and deep order books.



This liquidity focus ensures you can implement index strategies efficiently and exit positions when necessary without severe slippage.



Illiquid tokens might offer higher theoretical returns but expose investors to inability to realize those returns when selling.



Regulatory Compliance and Tax Security
Following applicable laws and regulations protects against government enforcement actions, penalties, or asset seizures. Token Metrics provides transaction histories supporting tax compliance but users must maintain detailed records of all crypto activities including purchases, sales, rebalancing transactions, and transfers between wallets.



Consider working with crypto-specialized tax professionals ensuring full compliance with reporting requirements. The cost of professional tax assistance proves trivial compared to risks from non-compliance.



Emergency Preparedness and Succession Planning
Comprehensive security includes planning for emergencies including:

• Documenting wallet access instructions for trusted individuals
• Maintaining secure backup of recovery seeds and passwords
• Creating crypto asset inventory for estate planning
• Considering legal documents addressing cryptocurrency inheritance



Without proper planning, your cryptocurrency could become inaccessible to heirs upon death. Many families have lost access to substantial crypto holdings due to lack of succession planning.



Building Your Personal Security Framework

Assessing Your Security Needs
Security requirements scale with portfolio size and complexity.



For small portfolios under $5,000, reputable exchange custody with 2FA and strong passwords may suffice. For portfolios of $5,000-$50,000, hardware wallets become essential for majority of holdings.



For portfolios exceeding $50,000, multisig or institutional custody warrant serious consideration. For portfolios exceeding $500,000, professional security consultation and institutional custody become prudent.



Assess your specific situation honestly, implementing security measures appropriate for your holdings and technical capabilities.



Creating Security Checklists
Develop systematic security checklists covering:

• Regular security audits of wallet configurations
• Password rotation schedules
• 2FA verification across all platforms
• Recovery seed backup verification
• Device security updates



Regular checklist execution ensures security doesn't degrade over time as you become complacent. Set quarterly reminders for comprehensive security reviews.



Continuous Education
Crypto security threats evolve constantly. Stay informed through:

Token Metrics educational resources and platform updates
• Cryptocurrency security news and advisories
• Community forums discussing emerging threats
• Periodic security webinars and training



Knowledge proves the most powerful security tool. Understanding threat landscape enables proactive defense rather than reactive damage control.



Conclusion: Security Enables Confident Investing

Cryptocurrency's revolutionary potential means nothing if your investment is lost to theft, hacks, or user error.



Security isn't an afterthought—it's the foundation enabling confident long-term investing. Without proper security measures, even the most sophisticated investment strategies become meaningless.



Token Metrics AI Indices provide comprehensive security through multiple dimensions—selecting fundamentally secure cryptocurrencies, providing educational resources on custody best practices, implementing platform-level security protecting user data, and maintaining no-custody architecture eliminating single-point-of-failure risks.



But ultimately, security requires your active participation. Token Metrics provides tools, knowledge, and guidance, but you must implement proper custody solutions, maintain operational security hygiene, and stay vigilant against evolving threats.



The investors who build lasting crypto wealth aren't just those who select winning tokens—they're those who protect their investments with appropriate security measures. In cryptocurrency's digital landscape where irreversible transactions and pseudonymous attackers create unique challenges, security determines who ultimately enjoys their gains and who watches helplessly as value evaporates.



Invest intelligently with Token Metrics' AI-powered indices. Protect that investment with comprehensive security practices. This combination—sophisticated strategy plus robust security—positions you for long-term success in cryptocurrency's high-opportunity, high-risk environment.



Your crypto investments deserve professional-grade portfolio management and professional-grade security. Token Metrics delivers both.



How Token Metrics Strengthens Your Crypto Security

At Token Metrics, safeguarding your crypto assets is fundamentally built into our platform.



We never take custody of client funds; instead, our AI-driven indices provide guidance, education, and advanced risk screening so you retain full control over your assets at all times.



Our robust platform-level security—encompassing encrypted communications, role-based access, and continuous threat monitoring—offers enterprise-grade protection for your data and strategies.



Whether you want to analyze secure projects, develop stronger portfolio management, or combine expert research with your own secure storage, Token Metrics provides a comprehensive support system to help you invest confidently and safely.



How can I prevent losing my crypto to hacks?

Use unique, complex passwords for every platform, enable two-factor authentication using authenticator apps (not SMS), avoid custodial wallets on exchanges for long-term holdings, store large balances in hardware wallets, and never share your private keys with anyone.



What is the safest way to store cryptocurrency?

Hardware wallets offer the highest level of security for most users. For substantial balances, using multi-signature wallets or institutional custodians (for qualified investors) adds protection. Always keep backup recovery phrases in secure physical locations.



How do AI indices help with crypto security?

AI indices, such as those from Token Metrics, systematically vet projects for smart contract vulnerabilities, regulatory issues, code security, liquidity, and signs of fraudulent activity, thus reducing exposure to compromised or risky assets.



What should I do if I suspect a phishing attack?

Do not interact with the suspicious message. Instead, independently visit the platform’s website by typing the URL directly and contact official customer support if needed. Never provide passwords or private keys to unsolicited contacts.



How should I plan for inheritance or emergencies?

Document wallet access information and recovery instructions for trusted family or legal representatives. Maintain secure, physical records of all backup phrases, and consider legal estate planning that addresses your digital assets.



Disclaimer

This blog is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any cryptocurrency or digital asset. You should consult your own legal, tax, and financial professionals before making any investment or security decisions. While every effort was made to ensure accuracy, neither Token Metrics nor its contributors accept liability for losses or damages resulting from information in this blog.

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Research

Non-Fungible Token (NFT): What It Means and How It Works?

Token Metrics Team
12 minutes

The most expensive NFT sale to date was Beeple's Everydays: The First 5000 Days, which sold for $69.3 million. This highlights the growing interest in NFTs and the potential for them to be used as a vehicle for sharing virtually any form of media using the blockchain.

But what is an NFT? Let's find out.

What is an NFT?

NFTs, or non-fungible tokens, are unique digital assets with blockchain-managed ownership. They are stored on a blockchain and cannot be replicated or destroyed, making them resistant to tampering. NFTs can represent a wide range of items, including game items, digital art, collectibles, event tickets, and even ownership records for physical assets.

Unlike traditional cryptocurrencies, which are interchangeable and can be easily replicated, NFTs are non-fungible, meaning they have unique qualities that make them one-of-a-kind. This is why NFTs have gained popularity in the art world, where they can be used to verify the authenticity of a digital artwork and ensure that it cannot be copied or stolen.

How Can We Ensure Unique Authenticity?

When someone purchases an NFT, they not only receive the artwork itself, but also a digital receipt that proves that the piece is original, unique, and authentic. This receipt is stored on the blockchain and can be easily accessed and verified by anyone who wants to confirm the ownership and authenticity of the NFT.

While it is technically possible for someone to take a screenshot of an NFT and claim that they own it, this does not give them legal ownership of the artwork. Just like taking a picture of the Mona Lisa at the Louvre does not mean that you own the painting, taking a screenshot of an NFT does not give you ownership of the artwork.

To legally own an NFT, you must purchase it using cryptocurrency and store it in a virtual showcase. This allows you to own and display your artwork in a way that is secure and verifiable, and it ensures that you are the legal owner of the NFT.

NFT Basics You Need To Know

Non-fungible tokens (NFTs) are unique digital files that are stored on a blockchain. A blockchain is a decentralized, public digital ledger that records every transaction that takes place on the decentralized web. This means that the entire history of an NFT, including its creator, properties, transactions, and smart contracts, is backed by a powerful blockchain.

NFTs are different from fungible tokens, such as Bitcoin or Ethereum, which are interchangeable and store value. In contrast, NFTs store data on the blockchain, making them unique and non-replicable.

Important Traits Of NFTs

Some key characteristics of NFTs include:

  • Digital ownership: NFTs are owned and controlled by the individuals who hold them in their digital wallets.
  • Permanent: The data associated with an NFT is permanently stored within the token itself. This can include images, messages, signatures, or any other data.
  • Permission-less: NFTs can be built on a permission-less blockchain, such as Ethereum, meaning that anyone can create and use them.
  • Programmable: Because an NFT is just a piece of code on a blockchain, it can be programmed to have various attributes. For example, an NFT artwork might be programmed to pay the artist royalties on every secondary sale of that artwork.
  • Unique: The uniqueness of an NFT can be verified on the blockchain, ensuring that it is one-of-a-kind and cannot be replicated.

How to Own One? 

To create an NFT, there are several steps that you can follow:

  1. Get your media ready: NFTs support a variety of file types, such as MP3 audio, JPG and PNG images, and 3D files like GLB.
  2. Set up a non-custodial wallet: This will allow you to securely store the cryptocurrency that you will use to buy, sell, and create NFTs. Wallets are also necessary for signing in and creating accounts on NFT marketplaces.
  3. Buy Ethereum or other fungible tokens: You will need to purchase cryptocurrency to cover the cost of minting your NFT.
  4. Connect your wallet to an NFT marketplace: Popular options include Rarible and OpenSea. Connect your wallet by tapping the "Connect" button in the top right corner of the screen. This will create your account and allow you to start creating, minting, and selling your NFTs.
  5. Upload your file and describe your asset: Once you have connected your wallet, you can upload your file to the marketplace and provide a description of your asset. Decide if you want to create a standalone piece or multiple copies of the same NFT.
  6. Mint your NFT: The minting process requires Ethereum for transaction approvals. Once complete, your digital artwork will be ready to be traded and purchased on the marketplace.

Once you have created your NFT, there are several things that you can do with it:

  • Buy and sell it on a marketplace
  • Trade or gift it to others
  • Use it in apps or games
  • Showcase your public NFT inventory on a platform or social media.

The Secondary Markets for NFTs

NFT minting platforms enable creators to create non-fungible tokens (NFTs) to retain more control over their creative output. These NFTs can be sold on the following secondary marketplaces:

  • OpenSea: The first and largest marketplace for NFTs, OpenSea is committed to using open protocols like Ethereum and interoperable standards like ERC-721 and ERC-1155 to enable new digital economies. The platform allows consumers to trade items freely, creators to launch new digital works, and developers to build marketplaces for their digital items. It recently launched the beta version of its Solana-based NFT marketplace.
  • Coinbase NFT: Coinbase recently opened its NFT marketplace to the public in beta. The marketplace acts as a social media platform where users can buy, sell, and interact with NFTs. It aims to make minting, purchasing, showcasing, and discovering NFTs easier.
  • Solanart: Solanart is the first and largest fully-fledged NFT marketplace on Solana. Users can easily access digital collectibles and explore, buy, and sell NFTs that run on the Solana blockchain.
  • Rarible: Rarible is a do-it-yourself NFT marketplace where creators can mint NFTs with ease. The platform's native governance token, "RARI," is used to incentivize users and give the community a voice. However, unrestricted access means that Rarible has become a place for people to mint counterfeit versions of existing NFTs.
  • Nifty Gateway: Owned by the Gemini crypto exchange, Nifty Gateway is a popular NFT marketplace that focuses on user-friendly and viral drops by celebrated artists.
  • SuperRare: SuperRare (SR) is one of Ethereum's first crypto-art NFT marketplaces. Only accepted artists can participate in the platform, where users can discover, buy, and sell tokenized digital art and showcase their collections.

The demand for secondary NFT sales is growing rapidly, leading to increased competition among these marketplaces. Like the early days of Web 1 and 2.0, the emergence of Web 3.0 has created an open market where these platforms must find ways to attract and retain customers.

Some Notable NFT Projects

The thriving NFT market has led to the launch of several high-value projects, including the following companies:

  • Yuga Labs: a blockchain technology company that develops Ethereum-based NFTs and digital collectibles. Yuga's first project, Bored Ape Yacht Club, is one of the most valuable NFT collectibles in the space. The company has also rewarded its holders with free NFTs and other perks. Yuga Labs recently acquired Larva Labs, which brings high-value projects like Cryptopunks and Meebits under the Yuga brand. The company is backed by investors like Coinbase, Samsung, and Mark Cuban.
  • Doodles: a collection of 10,000 Ethereum-based NFTs featuring unique visual traits designed by BurntToast. The Doodles collection includes rare heads, costumes, and colorways, and the universe is ever-expanding. Owners of Doodles have exclusive access to new products, merchandise, and events.
  • Okay Bears: a collection of 10,000 Solana-based NFTs. Ownership of an Okay Bear grants access to a virtuous community that will extend beyond the internet into the real world.

The Future of NFTs

Blockchain technology is known for its ability to represent assets and prove ownership. NFTs take this a step further by enabling people to potentially purchase non-fungible assets like land and gold. The global market cap for gold and real estate is over $300 trillion, so even a small percentage of that being tokenized would greatly increase the total crypto market cap. Tokenized real estate offers ordinary people the opportunity to invest in real estate, which has traditionally been difficult for the average person to participate in.

NFTs also have applications in other industries. For example, Nike recently filed a patent for NFT-enabled sneakers called "CryptoKicks." In 2019, Louis Vuitton announced plans to use NFTs to track the ownership of luxury fashion items. NFTs can also be used to tokenize certifications, degrees, and licenses, as well as sensitive data like medical records. The potential for NFTs to show ownership of any non-fungible commodity, whether real or virtual, is vast.

In conclusion, the use of non-fungible tokens (NFTs) has expanded beyond digital art and collectibles to include a wide range of real and virtual assets. The ability of NFTs to represent and prove ownership offers exciting possibilities for industries such as real estate, fashion, and even healthcare. As the technology and market continue to evolve, the potential applications for NFTs are endless.

Research

Future of Cryptocurrency - Is Crypto the Future?

Token Metrics Team
5 minutes

If you are wondering about the future of cryptocurrency, we did some digging to answer that, and more.

Cryptocurrency has gained popularity and value in recent years, with the most well-known cryptocurrency, Bitcoin, reaching an all-time high in late 2021. However, the future of the crypto market is uncertain and the subject of much debate. Some analysts predict continued growth, while others foresee a potential crash. In this article, we will explore the potential future of cryptocurrency, including potential growth, crashes, and the role of regulation. We will also discuss predictions for specific cryptocurrencies, such as Bitcoin and Ether, as well as altcoins and decentralized finance (DeFi) and autonomous organizations (DAOs).

Will cryptocurrencies take off? Understanding the potential future of the crypto market can help investors make informed decisions about their investments.

11 Significant Crypto Predictions for 2023

By examining the past trends and indications in the crypto market, it appears that the future of crypto holds exciting opportunities for investors. Here are some notable crypto predictions to keep an eye on in 2023:

Continued Popularity and Growth

Some analysts predict that the popularity and value of cryptocurrencies, particularly Bitcoin, will continue to rise in 2023. This could be due to increased acceptance by businesses and higher demand for Bitcoin exchange-traded funds (ETFs).

Steep Crash

However, others believe that the crypto market is unstable and vulnerable to a crash. In 2022, Bitcoin's price fell by roughly 40% due to factors such as slowing economic growth and rising interest rates. This bearish market may continue into 2023, leading to a potential crash.

Volatility and Regulation

Regardless of whether the market experiences growth or a crash, it is likely that Bitcoin and other cryptocurrencies will continue to be volatile. This volatility could be mitigated by increased regulation of the crypto market, which some predict will play a more significant role in 2023.

DeFi and DAOs

The shift toward decentralized finance (DeFi) and autonomous organizations (DAOs) is expected to continue in 2023. DeFi aims to remove the need for middlemen in traditional financial products, while DAOs are a new type of internet community based on blockchain technology. These developments could help to increase the stability and growth of the crypto market.

Bitcoin's Price

Some analysts predict that Bitcoin's price will continue to rise, potentially reaching $100,000 by the end of the year. Others believe that the market is unstable and could experience a crash.

Increased Adoption

It is predicted that over 500 million people worldwide will invest in and own Bitcoin by the end of 2023. This could be due to increased awareness and acceptance of the cryptocurrency.

ETF Approval

The approval of the first spot Bitcoin ETF in the US is possible in 2023. This would allow investors to have direct exposure to the cryptocurrency itself, rather than just tracking Bitcoin futures contracts.

DeFi and DAOs

The shift toward DeFi and DAOs is expected to continue and could become the highest growth areas of the crypto market.

Ether's Performance

Some analysts predict that Ether, the second-largest cryptocurrency by market value, will outperform Bitcoin again in 2023.

Regulation

It is possible that regulation of the crypto market will play a more significant role in 2023, potentially helping to stabilize the market.

Altcoins

The performance of altcoins, or alternative cryptocurrencies, is uncertain. Some may experience growth, while others could struggle. It is important for investors to carefully research and evaluate individual altcoins before making any investments.

Key Takeaways

When we see crypto from the growth perspective, there is a fair chance of getting the climb in 2023, especially for Bitcoin. However, Ether can take over the throne owing to the stats of 2022.

If you are seeking expert research and analysis to inform your investment decisions, consider signing up for Token Metrics. Our platform can provide you with access to the best performing cryptocurrencies with just a click. Explore our plans to learn more.

Crypto Basics

What is Crypto Burning: Meaning, Definition, and Explanation

Token Metrics Team
4 minutes

In this article, we will explain what crypto burning is, how it is done, and why it is done. We will also discuss the potential benefits and risks of burning crypto, as well as the role of developers and miners in the process. By the end of this article, you will have a better understanding of how crypto burning works and whether it is something that you may want to consider for your own crypto investments.

What Does it Mean to Burn Crypto?

Crypto burning is the process of removing cryptocurrency from the blockchain. This concept originated from traditional stock markets and is facilitated by smart contracts. When tokens are burned, it can increase the value of the asset and make it more attractive to investors. It can also have benefits for tax regulations.

How is Crypto Burned?

The process of burning involves sending tokens to an invalid wallet address, where they cannot be accessed. This is typically done by developers or miners to manipulate the supply of tokens and potentially increase their value.

Why Burn Crypto Coins?

Developers burn tokens for many reasons, including to increase the value of the asset, create hype, and improve the business model. By decreasing the supply of tokens in circulation, they can also help to combat the effects of inflation and make the market more stable.

Can You Burn Crypto?

Technically, anyone can burn crypto. However, it is not advisable for individual investors to burn their own tokens as the coins will be permanently lost. Instead, they may want to consider staking or trading their crypto.

What is Crypto Buyback?

Crypto buyback is the process of repurchasing tokens from circulation. This is typically done by developers to decrease the supply of tokens and potentially increase their value. Buybacks are regulated by smart contracts, which ensures that the removed tokens will never resurface. This can be a good way for investors to encourage long-term holding (HODLing) of the tokens.

Crypto Basics

How to Create a Crypto Coin? 3 Ways to Do It

Token Metrics Team
6 minutes

In today's world of decentralization and blockchain technology, creating your own cryptocurrency has become a viable option for individuals and businesses alike. But how exactly does one go about creating a cryptocurrency? In this post, we will explore three methods for creating a cryptocurrency, ranging from the most difficult to the easiest. Whether you want to create your own blockchain, fork an existing one, or launch a token on an existing platform, this guide will provide a comprehensive overview of the steps involved. Let's dive in!

How To Create A Crypto Coin?

We are going to explain three ways to create a cryptocurrency, from basic to advanced.

Create your own blockchain (advanced)

  • Choose a consensus mechanism: Determine how transactions will be validated on your network
  • Design the blockchain architecture: Define who can create blocks, validate transactions, and access data
  • Create a user interface: Make sure the user experience is enjoyable
  • Audit crypto and code: Hire experts to review your code to ensure security and compliance

Fork an existing blockchain (intermediate)

  • Choose a blockchain to fork: Decide on an existing blockchain that aligns with your goals
  • Clone the blockchain: Create a copy of the chosen blockchain's code
  • Modify the code: Make any necessary changes to the code to suit your needs
  • Launch your blockchain: Deploy your modified blockchain and begin mining

Launch a token on an existing platform (basic)

  • Choose a blockchain: Decide on a blockchain that supports the creation of tokens, like Ethereum
  • Follow the platform's instructions: Each platform will have its own process for creating and launching a token - you can also use sites like Token Factory to launch your token
  • Promote and distribute your token: Once your token is live, market and distribute it to potential users.

What is the Difference Between a Coin and a Token?

A coin and a token are both types of cryptocurrency, but they have some key differences. A coin is a cryptocurrency that runs on its own blockchain, meaning it has its own independent infrastructure and user base. Examples of coins include Bitcoin and Litecoin.

On the other hand, a token is a cryptocurrency that is built on top of an existing blockchain, using the infrastructure and user base of that blockchain. Tokens are often created to represent a specific asset or utility, such as rewards points or event tickets. Examples of tokens include Tether and Shiba Inu.

Another key difference between coins and tokens is their relative scarcity. Since there can only be one coin on a given blockchain, the supply of coins is limited. This can give coins a certain level of value and scarcity, which can make them attractive to investors. In contrast, there can be an unlimited number of tokens on a given blockchain, which can make them less scarce and potentially less valuable.

It's important to understand the differences between coins and tokens when creating your own cryptocurrency. Depending on your goals and requirements, you may decide to create a coin or a token, or even both. With a clear understanding of the differences between the two, you can make an informed decision and choose the right approach for your project.

A Few Things to Consider Before Designing Your Crypto Coin:

There are several important things to consider before designing your crypto coin. These considerations will help you make informed decisions and increase the chances of success for your project.

First, you should consider the utility of your cryptocurrency. What value does it offer to users? Why would someone want to buy and use your cryptocurrency? What problems does it solve? Answering these questions will help you understand the potential value of your cryptocurrency and determine its utility.

Second, you should consider any regulatory and legal requirements. Cryptocurrency is a rapidly evolving field, and laws and regulations can change quickly. It's important to understand any compliance issues in your area and make sure your project adheres to all relevant regulations.

Third, you should consider the tokenomics of your cryptocurrency. Tokenomics is the study of the economics of a crypto project, including factors such as initial pricing, supply, emissions, distribution, market capitalization, and potential value. Understanding the tokenomics of your project will help you make informed decisions about how to structure your cryptocurrency and maximize its potential value.

Overall, it's important to carefully consider these factors before designing your crypto coin. By taking the time to understand your goals, requirements, and the economics of your project, you can increase the chances of success for your cryptocurrency.

Crypto Basics

Bullish in Crypto: Definition, Meaning, and Explanation

Token Metrics Team
4 minutes

In the world of cryptocurrency, the terms "bullish" and "bearish" are commonly used to describe an investor's confidence in the potential growth of a particular crypto asset. But what do these terms really mean, and how do they apply to the crypto market? In this article, we will provide a comprehensive explanation of these terms, including the concept of a "bull run" and how it applies to both cryptocurrencies and non-fungible tokens (NFTs).

What Does Bullish Mean in Crypto?

The terms "bullish" and "bearish" are commonly used in the financial market to describe the confidence an investor has in the potential growth of a financial asset. In the context of the crypto market, a "bullish" investor is one who believes that a particular cryptocurrency or non-fungible token (NFT) will rise in value. This confidence is often seen when the market is experiencing growth and gains are being made.

What Is Bull Run

A "bull run" in the crypto market is a period of time during which there is high demand for cryptocurrencies and NFTs, leading to an increase in prices. This increase is driven by confidence in the market, as investors are more likely to buy when they believe prices will continue to rise. A bull run typically includes an increase in the value of well-known cryptocurrencies such as Bitcoin, Ethereum, Binance, and Solana, as these have the highest market capitalizations.

Bullish On NFTs

The concept of a "bull market" also applies to the market for non-fungible tokens (NFTs). In this context, a bull market is characterized by high demand for NFTs, which drives up their prices. Factors that can lead to increased demand for NFTs include strong marketing and community support from the development team, as well as the utility and scarcity of the NFTs. A collector, trader, or creator may feel bullish about a particular NFT project if they believe it has strong potential for growth. This bullish sentiment can lead to higher prices for the NFTs and a decrease in market supply.

Final Thoughts

It is important for investors to understand the terminology used in the crypto market in order to make informed decisions about their investments. The terms "bullish" and "bearish" are commonly used to describe confidence in the potential growth of a crypto asset. A "bull run" is a period of time during which there is high demand for cryptocurrencies and NFTs, leading to an increase in prices. In the NFT space, a bull market is characterized by high demand for NFTs, which drives up their prices.

Crypto Basics

What are NFTs? NFT Art Explained | Future of NFTs

Token Metrics Team
6 minutes

You may have heard of CryptoPunks, Bored Ape Yacht Club, and VeeFriends, but you may not understand what they are. These names may sound like random combinations of words, but they actually represent some of the most valuable non-fungible token (NFT) projects that have emerged in the past few years.

The world of crypto art and NFTs may appear complex and mysterious, with a mix of celebrities, influencers, and internet experts. But it's not as confusing as it seems. Let's start from the beginning.

What Is An NFT?

Nearly all crypto art that has been introduced to the market has been done so through the minting of non-fungible tokens (NFTs). NFTs are digital assets that have verified proof of ownership. While "fungible tokens" like the US dollar can be easily traded (like exchanging 4 quarters for a dollar), each NFT is unique and cannot be easily traded. For example, imagine a sketch of "Starry Night" by Vincent Van Gogh that has been authenticated by a fine art appraiser as an original. This sketch would be non-fungible because you could not easily exchange it for, say, an original sketch by Leonardo da Vinci. This concept is easy to understand with tangible items like art pieces or collectible cards, but when digital assets can range from a celebrity tweet to an iconic meme to a picture of a pimped out animated ape, it may be confusing.

How Can We Ensure Unique Authenticity?

This is where NFTs enter the scene. Say you are a graphic design artist who just finished your newest 1-of-1 piece of work and you want to sell it as an NFT. Whoever purchases this piece would not only receive the artwork but they would also receive a “digital receipt” that proves that this exact piece is original, unique and authentic.

“But What If I Just Screenshot This Digital Artwork? Wouldn’t I Technically Own the Piece as Well?”

This is the first question that many have mockingly asked on social media and internet forums. The easy answer: yes, you can screenshot practically all digital artwork, but no, that does not mean you own it.

For example, millions of people swarm into the Louvre every year, waiting patiently amidst a giddy crowd, just to capture a picture of the priceless Mona Lisa. Obviously, a picture of the Mona Lisa saved on your iPhone camera roll does not mean that you own that painting.

NFTs work the same way.

Just as the Louvre paid millions of dollars to own, maintain, and display the Mona Lisa in their museum, NFT buyers do the same. However, the main difference is that instead of paying dollars to house the art in a fancy museum, they are paying with cryptocurrency and housing their art in a virtual showcase, so to speak.

This is the basis for how NFTs, cryptocurrency, and blockchain technology are establishing a new and lucrative market for digital art and artists.

The Art of Being Digital

In a 2021 interview, Gary Vaynerchuk (founder of Vayner Media and creator of VeeFriends) made the following statement regarding NFTs. The interviewer remarks on the tangibility of NFTs stating, "the digital aspect, like, you can't see it" — Gary jumps in:

"Well, you can't see a blue check on Instagram? I don't walk around the world with a blue check tattooed on my forehead, but everybody sees it. You can't see my 9 million followers on Instagram, or can you? I would argue the reverse. I would argue that people can't see most of the fancy things you have in your house; that people can see more digital than real life."

And he's onto something, and I'd like to call that something "The Art of Being Digital". In our highly digitized world, our online outreach and interconnectivity is wildly amplified. Gary Vee currently has 9.9 million followers on Instagram — but without access to the internet — he has no way of interacting with that community and tapping into the true power of those 9.9 million people.

Why Do NFTs Have Value?

The value of an NFT is determined by the collective intentionality of those who are willing to buy and sell them. In other words, the value of an NFT is based on what people are willing to pay for it. This is similar to the way that the value of traditional art is determined by the market, with the value being based on factors such as the artist's fame and the rarity of the work.

The Tom Brady example illustrates this idea. On the surface, it might seem strange that someone would pay $430k for a digital picture of a cartoon ape. However, if we consider the fact that the buyer was Tom Brady and the seller was the well-known digital artist Trevor Jones, it becomes clearer that the value of the NFT was determined by the collective intentionality of those involved in the transaction.

Furthermore, the digital art of NFTs offers more than just a digital file and a high price tag. NFTs provide the ability for digital artists to monetize their work and for collectors to own and trade unique digital items. This opens up new opportunities for artists and collectors alike, and has led to the growth of a vibrant and exciting market for NFTs.

Join The Club

Celebrities such as Tom Brady, Post Malone, Steph Curry, and Jimmy Fallon have been buying Bored Ape NFTs. Bored Ape NFTs were introduced by the Bored Ape Yacht Club (BAYC) in April 2021 at a price of 0.08 Ethereum (ETH) each, or about $190 at the time. Since then, the price of Bored Apes has increased significantly, yielding substantial returns for early investors.

In addition to the potential for financial gain, buying a Bored Ape NFT also grants the buyer access to the BAYC community. This includes access to the BAYC Discord, where buyers can connect with other members of the club, including celebrities, and collaborate on NFT-related projects. BAYC also gives members priority access to future NFT drops, allowing them to expand their collections.

Minting and selling NFTs can also be highly lucrative for those who create their own NFT projects. This is another reason why celebrities and others may be interested in the NFT market. Creating and selling NFTs allows artists and other creators to monetize their digital work and gives collectors the opportunity to own unique digital items. The growth of the NFT market has created new opportunities for both artists and collectors, leading to a vibrant and exciting market for NFTs.

Blockchain, Smart Contracts, and Secondary Sales

Blockchain technology is used to record the conversion of traditional currency into cryptocurrency, such as Ethereum (ETH), in the NFT market. This transaction is recorded on the blockchain as public information that is easily accessible to anyone who wants to view it. This ensures transparency and helps to prevent fraud in the NFT market.

Smart contracts are programs stored on the blockchain that allow NFT creators to stipulate the conditions of resale. For example, a creator could draft a smart contract that allows them to earn a 10% commission on any subsequent resales of their NFT. This allows creators to continue to benefit from the success of their work, even after the initial sale.

Smart contracts also facilitate secondary sales in the NFT market. When the value of an NFT increases, the smart contract associated with that NFT can automatically distribute any profits from the sale to the relevant parties, such as the creator or the NFT platform. For example, if the value of Tom Brady's Bored Ape NFT increased from $430k to $530k, the smart contract could automatically distribute the $100k profit to the Bored Ape Yacht Club, if that was stipulated in the contract.

This use of smart contracts helps to ensure that all parties are fairly compensated for their contributions to the NFT market, and it allows for efficient and transparent transactions without the need for intermediaries.

The Future Of Crypto-Art

Grammy-winning artist Tyler, the Creator recently questioned the value of NFTs, stating that most of the examples he has seen are not "beautiful art." While art is subjective and many NFTs are AI-generated, there are still many ways in which NFTs can offer value in the real world.

First, NFTs can be used to represent tangible experiences and achievements. Instead of framing a concert ticket or a season pass, these items could be represented as NFTs, allowing individuals to proudly display their experiences and achievements in the digital world. This could be especially beneficial for VIP experiences and exclusive memberships.

Second, NFTs can provide a level of authenticity and scarcity that cannot be achieved with physical items. This is especially useful for limited edition items and collectibles, which can be authenticated and traded easily on the blockchain.

Third, the use of smart contracts can ensure that all parties are fairly compensated for their contributions to the NFT market. This allows for transparent and efficient transactions without the need for intermediaries.

Overall, while some may dismiss NFTs as "silly little digital artworks," they have the potential to reshape not just the art world, but the world itself.

Crypto Basics

What is WETH: Wrapped Ethereum? [Answered]

Token Metrics Team
4 minutes

If you are wondering what is WETH, short for Wrapped Ethereum, this is the place to be.

Cryptocurrencies have gained a lot of popularity in recent years, with many investors looking to invest in the digital assets. However, the use of these cryptocurrencies on decentralized applications (dApps) can be limited due to compatibility issues. This is where wrapped tokens come in. Wrapped tokens are tokenized versions of cryptocurrencies that can be pegged to the value of the original coin and used on different blockchain networks. In this article, we will explain what WETH is and how it works.

What is WETH or Wrapped Ethereum?

WETH is the abbreviation for Wrapped Ether, which is a tokenized version of the cryptocurrency Ether (ETH) that is pegged to its value. This means that the value of WETH remains the same as ETH, but it allows for increased interoperability between Ethereum and other blockchain networks.

How Does Wrapped Ethereum Work?

In order to create Wrapped Ethereum, a custodian must hold the collateral (in this case, ETH). This custodian can be a merchant, multi-signature wallet, or a smart contract. To create WETH, an investor sends their ETH to the custodian, and in return, a wrapped version of the ETH is created. This process is similar to how stablecoins are created, as they are essentially "wrapped USD" that can be redeemed for fiat dollars at any time.

What Makes Wrapped Ethereum Unique?

Wrapped tokens like WETH allow investors to hold onto their ETH while using it on other blockchain networks. This increases liquidity and capital efficiency, as investors can wrap their assets and deploy them on other chains. Wrapping Ether can also reduce transaction times and fees, as Ethereum often suffers from high gas fees. However, using wrapped tokens also means relying on a custodian and taking on additional risks.

Are ETH and WETH Different?

Yes, ETH and WETH are different. ETH is the original cryptocurrency, while WETH is a wrapped version of ETH that is ERC-20 compatible. This means that it can be easily used on a wide range of decentralized applications (dApps), but it is equivalent to ETH in terms of value. Investors may need to convert their ETH to WETH in order to use certain dApps.

Crypto Basics

What Causes Crypto To Rise? [Answered]

Token Metrics Team
5 minutes

Do you want to know what causes crypto to rise? This is the place to be.

Cryptocurrency prices are highly volatile and can fluctuate rapidly, which can be both good and bad for investors. To understand what causes crypto to rise in value, it's important to first understand how cryptocurrencies differ from traditional government-controlled currencies. Unlike fiat currencies, which are backed by a central authority and have value because consumers trust them, cryptocurrencies are decentralized and not controlled by any one entity. This means that cryptocurrencies gain value in different ways than traditional currencies. In this article, we will explore some of the factors that can cause the value of cryptocurrencies to increase.

What Causes Crypto to Rise?

Let's find out what causes cryptocurrencies to rise in value.

Supply and Demand

The value of cryptocurrency is determined by supply and demand, just like any other asset. When demand for a particular cryptocurrency is higher than the supply, its value will increase. For example, if there is a scarcity of a certain cryptocurrency, its value will rise due to the unequal balance between supply and demand.

Each cryptocurrency project typically announces its plans for minting and burning tokens, which is the process of creating and destroying tokens to control the supply. Some cryptocurrencies, such as Bitcoin, have a fixed maximum supply, while others, such as Ether, have no limit on the number of tokens that can be created. Some cryptocurrencies also have mechanisms in place to burn tokens in order to prevent the circulating supply from growing too large and causing inflation.

The demand for a cryptocurrency can increase for a variety of reasons, such as increased awareness of the project or increased utility of the token. So, one factor that can cause the value of a cryptocurrency to rise is consumer demand for that particular coin.

Exchange Availability

Popular cryptocurrencies like Bitcoin and Ether are typically available on multiple exchange platforms, which makes them easily accessible to a large number of investors. However, smaller cryptocurrencies may only be available on a few exchange platforms, which can limit their reach and make them less attractive to investors.

If a cryptocurrency is listed on many exchange platforms, it can increase the number of investors who are able to buy it and drive up demand. As we know, when demand for a cryptocurrency increases, its price will also rise. So, another factor that can cause the value of a cryptocurrency to increase is its availability on exchange platforms.

Competition

There are thousands of different cryptocurrencies and new projects and tokens are being launched all the time. Because the entry barriers to creating a new cryptocurrency are relatively low, the most important aspect of a cryptocurrency's success is building a network of users. Applications built on blockchain technology can help to build networks quickly, especially if they have an advantage over competing applications.

In a situation where a new competitor gains traction, it can take value away from the incumbent cryptocurrency, causing its price to drop as the new competitor's price rises. Overall, competition is an important factor to consider when looking at the value of a cryptocurrency.

Internal Governance

Cryptocurrency networks typically operate according to a fixed set of rules. Some cryptocurrencies, known as governance tokens, allow stakeholders to have a say in the future of the project, including how the token is used or mined. In order for changes to be made to the protocol of a token, there must be agreement among stakeholders.

For example, the Ethereum network upgraded from a proof-of-work to a proof-of-stake consensus mechanism, making much of the expensive mining equipment obsolete. This will likely have an impact on the value of Ether.

In theory, governance tokens should rise in value as stakeholders see fit. However, the slow process of improving protocols and updating software can limit the appreciation of cryptocurrency values.

Crypto Basics

What is KYC in Regard to Crypto? [Answered]

Token Metrics Team
4 minutes

KYC, or "know your customer," is a term used to describe the identity and background checks that financial institutions are required to conduct on their customers. These checks are important for risk mitigation and are part of the Anti-Money Laundering (AML) regulations that these institutions must follow. In the cryptocurrency space, KYC regulations are becoming increasingly important as more and more people use digital assets for financial transactions. By conducting KYC checks, cryptocurrency exchanges and other financial institutions can help prevent money laundering and other illegal activities.

History of Know Your Customer

The United States government has implemented a number of measures to help financial service institutions detect and prevent financial crimes. These measures were established by the USA Patriot Act of 2001 and were finalized in 2002, making KYC (know your customer) checks mandatory for all US financial institutions. In 2016, the Department of Treasury's Financial Crimes Enforcement Network (FinCEN) expanded these regulations to include the FinTech sector, which resulted in virtual currency exchange platforms being declared official money services businesses under the Bank Secrecy Act. This means that these platforms are subject to all AML (anti-money laundering) and KYC requirements.

KYC in Practice

While it is up to regulated entities (banks, crypto exchanges, and other financial institutions) to implement the specifics of KYC and AML regulations, the KYC practices and programs generally include three essential components:

  1. Customer Identification Program (CIP): Through CIP, firms verify the customer's identity through independent data. This includes the client's name, address, and date of birth. Some firms even request a form of identification (passport or ID), social security number, or a video and selfie from their customers to verify their identity.
  2. Customer Due Diligence (CDD): CDD is the process of screening the background of a prospective client. Thorough background checks are essential to understand the risks that a new customer could bring to the firm. This process can expose fraudulent activity that potential new clients may have taken part in. If necessary, firms will perform enhanced due diligence (EDD) to get a deeper look into the new customer's past in order to mitigate risk further.
  3. Ongoing Monitoring and Risk Management: Even after Customer Identification Programs and Due Diligence take place, firms will continue to monitor and manage the potential risks of new customers. They will continue to oversee their customer's transactions and flag anything unusual. This ensures ongoing risk mitigation which is essential for the trust between financial firms and their clients.

Why is KYC/AML Important?

KYC regulations aim to discern that customers are who they say they are. This helps to prevent money laundering, terrorist financing, and fraud within the financial market.

Know Your Customer and other Anti-Money Laundering regulations benefit both financial institutions and their clients. These rules improve security and mitigate risk by keeping bad actors off the books. This acts as an assurance for customers and leads to a more trustworthy company-client relationship.

KYC and Cryptocurrency

The cryptocurrency industry is still relatively new, and its decentralized nature can make it difficult to implement KYC (know your customer) measures. Crypto regulations are also still evolving as regulators seek to prevent financial crimes using cryptocurrencies and blockchain technology. As mentioned, crypto exchanges are considered official money services businesses and are therefore subject to KYC rules. These rules require exchanges to conduct identity and background checks on their customers, which may include requiring a photo ID. Many exchanges only allow transactions to occur once KYC is completed, especially for large sums of money.

However, some exchanges may try to avoid these rules by establishing their companies in countries with less stringent regulations. Exchanges that do not follow KYC and AML laws may not be available to use in countries that have these laws. This is why implementing KYC practices can actually increase an exchange's global reach by making it available in countries that have these laws, such as the US.

As the FinTech industry continues to grow and develop, it is important to regulate and mitigate risks to prevent illegal or suspicious behavior. AML laws are essential for ensuring fairness and equity in the emerging financial technology industry. Over time, regulations will continue to evolve to keep pace with the rapidly changing market.

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