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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

Building Retirement Wealth with Token Metrics Crypto Indices: A Long-Term Investment Strategy for Financial Freedom

Token Metrics Team
10 min read

Most cryptocurrency content focuses on quick profits, overnight riches, and short-term trading gains. This creates the misconception that crypto exists solely for speculation rather than serious wealth building. The reality? Cryptocurrency represents one of the most powerful tools available for long-term retirement planning when approached with discipline and proper strategy.

Token Metrics AI Indices provide the framework for incorporating cryptocurrency into retirement portfolios intelligently. Rather than gambling on individual tokens or timing markets perfectly, systematic index investing builds wealth gradually over decades through compound growth, professional management, and strategic diversification.

This comprehensive guide explores how to use crypto indices for retirement planning, comparing traditional retirement vehicles to crypto options, calculating realistic retirement scenarios, and building multi-decade investment strategies that could transform your financial future.

Why Crypto Indices Belong in Retirement Portfolios

Traditional retirement planning relies on stocks, bonds, and real estate. Adding cryptocurrency exposure enhances portfolios through several key mechanisms:

  • Superior Growth Potential: Historical crypto returns significantly exceed traditional assets over multi-year periods. Even if future returns moderate, achieving 30-50% annualized returns would dramatically impact retirement wealth.
  • Diversification Benefits: Cryptocurrency often moves independently from traditional assets, providing genuine diversification that smooths portfolio returns over time.
  • Inflation Protection: Fixed supply schedules make many cryptocurrencies potential inflation hedges, crucial for 20-40 year retirement planning horizons.
  • Accessibility: Unlike real estate or certain restricted investments, cryptocurrency provides accessible exposure regardless of location or wealth level.

A $10,000 investment growing at 40% annually becomes $289,000 in 10 years and over $8 million in 20 years, compared to traditional 8-10% returns producing $46,000-67,000 in 20 years.

Crypto Index Retirement Strategies by Age

Appropriate cryptocurrency allocation varies dramatically based on age and time until retirement. Here's how to structure crypto index exposure across different life stages.

Ages 20-35: Maximum Growth Phase

Young investors possess retirement timelines of 30-45 years, allowing aggressive crypto allocation with time to recover from potential downturns.

  • Target Allocation: 20-30% of total investment portfolio in crypto indices
  • Index Selection: 50% aggressive growth indices, 30% balanced indices, 20% conservative indices
  • Strategy: Maximum growth through high-risk/high-reward positioning with gradual shift toward stability as you age

At this age, even 80% portfolio declines during severe bear markets can be recovered within 5-10 years through continued contributions and market recovery. The extraordinary upside potential of aggressive crypto indices justifies accepting higher volatility.

Dollar-cost average aggressively during this phase. Invest consistently whether markets surge or crash—time in market beats timing the market over multi-decade horizons. A disciplined 25-year-old investing $500 monthly in crypto indices could accumulate millions by retirement.

Ages 35-50: Balanced Growth Phase

Mid-career professionals have 15-30 years until retirement, requiring balance between growth and preservation.

  • Target Allocation: 10-20% of portfolio in crypto indices
  • Index Selection: 30% aggressive growth, 50% balanced indices, 20% conservative indices
  • Strategy: Maintain growth exposure while gradually reducing volatility through balanced allocations

This age bracket still allows recovery from market downturns but requires more caution. Your portfolio has grown substantially through career earnings and investment gains—protecting accumulated wealth becomes increasingly important while maintaining growth exposure.

Continue regular contributions but consider taking partial profits during euphoric market conditions to rebalance back to target allocations. This systematic profit-taking locks in gains while maintaining disciplined exposure.

Ages 50-60: Capital Preservation with Growth

Pre-retirement investors have 5-15 years until retirement, requiring capital preservation focus while maintaining some growth exposure.

  • Target Allocation: 5-10% of portfolio in crypto indices
  • Index Selection: 10% aggressive growth, 30% balanced indices, 60% conservative indices
  • Strategy: Emphasize established cryptocurrencies through conservative indices while maintaining modest growth exposure

Near-retirement portfolio declines prove difficult to recover before accessing funds. Conservative crypto indices focusing on Bitcoin, Ethereum, and fundamentally strong large-caps provide continued growth potential with substantially reduced volatility compared to aggressive indices.

This phase should involve gradually reducing crypto allocation through systematic profit-taking if positions have appreciated significantly. Lock in life-changing gains rather than risking everything on continued appreciation.

Ages 60+: Income and Preservation

Retirees and near-retirees require income generation and capital preservation, making crypto allocation more cautious.

  • Target Allocation: 3-5% of portfolio in crypto indices maximum
  • Index Selection: 100% conservative indices emphasizing established assets
  • Strategy: Preserve accumulated wealth while maintaining modest crypto exposure for continued growth and inflation protection

At this stage, crypto serves primarily as portfolio diversifier and inflation hedge rather than primary growth driver. Conservative indices provide stability while avoiding volatility that could disrupt retirement cash flow needs.

Consider this allocation as "money you won't need for 10+ years" even in retirement. Maintain traditional income-generating assets for living expenses while crypto serves as long-term appreciation component.

Tax-Advantaged Crypto Retirement Investing

The most powerful retirement investing occurs in tax-advantaged accounts where compound growth accelerates without annual tax drag.

  • Traditional IRA Crypto: Contributions may be tax-deductible. Crypto appreciation grows tax-deferred until retirement withdrawals, dramatically accelerating wealth accumulation.
  • Roth IRA Crypto: Contributions aren't tax-deductible but all future gains—including crypto appreciation—are tax-free if withdrawn after age 59½. Imagine 1000%+ gains completely tax-free.
  • Tax-Loss Harvesting: In taxable accounts, sell positions at losses to offset gains, reducing tax liability. Crypto currently isn't subject to wash-sale rules, allowing aggressive optimization.
  • 401(k) Options: Some plans now include crypto-related options. Contribute enough to maximize employer match, then open self-directed IRA for crypto indices.

Calculating Your Crypto Retirement Scenarios

Understanding how crypto indices could impact your retirement requires running realistic projections based on various return scenarios.

Conservative Scenario: 20% Annualized Returns

If crypto indices deliver 20% annualized returns—substantially below historical performance but conservative for mature markets—the impact on retirement wealth remains significant.

Example: $10,000 initial investment with $500 monthly contributions over 30 years at 20% annual returns grows to approximately $2.8 million. The same contributions at traditional 8% returns grow to $680,000. The additional $2.1 million from crypto allocation transforms retirement completely.

Moderate Scenario: 35% Annualized Returns

If crypto indices achieve 35% annualized returns—possible given historical performance and continued sector growth—wealth accumulation accelerates dramatically.

Example: Same $10,000 initial investment with $500 monthly contributions over 30 years at 35% returns grows to approximately $18.5 million. This level of wealth provides complete financial freedom and generational wealth transfer opportunities.

Aggressive Scenario: 50% Annualized Returns

If crypto indices deliver 50% annualized returns—achievable during optimal conditions though not guaranteed—retirement wealth reaches extraordinary levels.

Example: $10,000 initial with $500 monthly over 30 years at 50% returns produces approximately $86 million. While this scenario seems unrealistic, early cryptocurrency adopters achieved even higher returns.

Reality Check: Averaging Across Market Cycles

Real returns won't be linear—expect bull markets delivering 200-500% returns alternating with bear markets producing 50-80% drawdowns. Over complete cycles, conservative average returns of 25-40% annually seem reasonable for diversified crypto index exposure.

These projections illustrate why even small crypto allocations dramatically impact long-term retirement wealth. A 10% crypto allocation returning 30% annually while 90% traditional assets return 8% produces blended portfolio returns of 10.2%—significantly enhancing retirement outcomes.

Managing Crypto Volatility in Retirement Planning

Cryptocurrency's volatility creates legitimate concerns for retirement investors. Managing this volatility while capturing growth requires specific strategies.

Time-Based Allocation Adjustment

Gradually reduce crypto allocation as retirement approaches through systematic rebalancing. This glide path approach—similar to target-date retirement funds—reduces volatility exposure as time horizon shortens.

Start with higher allocations (15-25%) in your 20s-30s, gradually reducing to 10-15% in 40s, 5-10% in 50s, and 3-5% in retirement. This systematic reduction locks in gains while managing risk appropriately for age.

Rebalancing Discipline

Set specific portfolio allocation targets and rebalance quarterly or annually. When crypto appreciates significantly beyond target allocation, sell portions to rebalance back. When crypto declines below target, add to positions during market weakness.

This mechanical rebalancing forces buying low and selling high—the opposite of emotional investing. Over decades, disciplined rebalancing dramatically improves risk-adjusted returns.

Emergency Fund Separation

Never invest emergency funds or money needed within 5 years in cryptocurrency. Maintain 6-12 months expenses in cash or stable value accounts separate from crypto allocation. This ensures market volatility doesn't force selling during downturns.

Retirement planning works best when crypto represents "money you won't need for 10+ years." This timeframe allows riding out market cycles without forced selling during temporary declines.

Dollar-Cost Averaging Forever

Continue systematic contributions regardless of market conditions. Dollar-cost averaging reduces timing risk and smooths out entry prices across bull and bear markets. The worst-performing investment strategy is investing large sums at market tops—DCA prevents this mistake.

Set up automatic monthly or bi-weekly investments and maintain through all market conditions. Over 20-30 year retirement timelines, consistent DCA produces exceptional results even if individual timing proves poor.

Building Your Multi-Decade Crypto Index Retirement Plan

Creating an effective long-term strategy requires comprehensive planning addressing allocation, execution, adjustment, and monitoring.

Phase 1: Foundation Building (Years 1-5)

  • Establish clear retirement goals and timeline
  • Determine appropriate crypto allocation based on age and risk tolerance
  • Open necessary accounts (self-directed IRA, taxable brokerage, exchange accounts)
  • Begin dollar-cost averaging into chosen Token Metrics indices
  • Set up automatic monthly contributions to maintain discipline

Focus this phase on building foundational positions and establishing sustainable contribution habits. Don't obsess over short-term performance—focus on consistency.

Phase 2: Accumulation Acceleration (Years 6-15)

  • Maximize contribution rates as income grows through career advancement
  • Implement tax-loss harvesting strategies in taxable accounts
  • Begin systematic rebalancing to maintain target allocations
  • Take partial profits during euphoric markets to lock in gains
  • Continuously educate yourself about crypto markets and blockchain technology

This phase typically coincides with peak earning years. Maximize the power of compound growth by contributing aggressively while maintaining disciplined rebalancing.

Phase 3: Pre-Retirement Transition (Years 16-25)

  • Gradually reduce crypto allocation through systematic profit-taking
  • Shift remaining crypto exposure toward conservative indices
  • Lock in life-changing gains rather than risking everything on continued appreciation
  • Develop retirement withdrawal strategy accounting for crypto volatility
  • Consider converting taxable crypto holdings to Roth IRA if tax-efficient

As retirement approaches, capital preservation becomes increasingly important. Take chips off the table while maintaining some exposure for continued growth and inflation protection.

Phase 4: Retirement Distribution (Years 26+)

  • Maintain 3-5% crypto allocation for growth and inflation protection
  • Withdraw from traditional assets first, allowing crypto to compound longer
  • Rebalance annually to maintain target allocations
  • Consider crypto allocation as "legacy wealth" for heirs
  • Monitor but don't obsess over short-term volatility

In retirement, crypto serves as long-term growth component rather than primary income source. Spend traditional assets while crypto appreciates, potentially leaving substantial wealth for heirs.

Conclusion: Transforming Retirement Through Strategic Crypto Allocation

Retirement planning with cryptocurrency doesn't require speculation, perfect timing, or excessive risk-taking. Token Metrics AI Indices provide systematic, professional, diversified exposure allowing disciplined long-term wealth building.

The choice is stark: maintain 100% traditional asset allocation and likely achieve comfortable but conventional retirement, or incorporate strategic crypto allocation potentially transforming retirement wealth completely. Even conservative 5-10% crypto allocations dramatically enhance retirement outcomes over multi-decade horizons.

Your advantage is time. Compound growth over 20-40 years turns modest contributions into life-changing wealth. Crypto's superior growth potential—even if moderated from historical levels—provides retirement enhancement unavailable through traditional assets alone.

The risks are manageable through proper allocation, diversification, and disciplined rebalancing. The opportunity cost of complete avoidance grows with every passing year. Markets won't wait for perfect confidence—they reward those who begin with imperfect action.

Token Metrics provides the tools, strategy, and professional management transforming crypto from speculation into serious retirement planning. Your future self will thank you for making strategic allocation decisions today rather than watching opportunities pass from the sidelines.

Start your 7-day free trial today and begin building the retirement you deserve through systematic, professional crypto index investing. Financial freedom awaits those willing to embrace opportunity with discipline and strategy.

Research

The Complete Beginner's Guide to Token Metrics Crypto Indices: Start Investing in 30 Minutes

Token Metrics Team
12 min read

Cryptocurrency investing intimidates many potential investors. The technical jargon, overwhelming number of tokens, security concerns, and stories of people losing fortunes create paralysis. You know crypto represents an opportunity, but where do you even begin?

Token Metrics AI Indices eliminate these barriers by providing a simple, secure pathway into cryptocurrency investing. Whether you've never bought crypto before or you're transitioning from traditional investments, this comprehensive beginner's guide walks you through everything needed to start investing successfully in just 30 minutes.

No technical expertise required. No complicated wallet setup. No endless research into thousands of tokens. Just straightforward steps that get you invested intelligently and positioned for long-term wealth creation.

What Exactly Are Crypto Indices? (Explained Simply)

Before diving into the how-to, let's establish a simple understanding of what you're investing in.

Think of crypto indices like a basket containing multiple cryptocurrencies. Instead of buying Bitcoin or Ethereum individually, you buy a pre-made collection of several carefully selected digital assets. This is similar to how traditional stock index funds like the S&P 500 contain hundreds of companies rather than forcing you to pick individual stocks.

Token Metrics creates these baskets using artificial intelligence that analyzes thousands of cryptocurrencies and selects the best ones based on comprehensive data. The AI acts like a team of expert analysts working 24/7, constantly monitoring market conditions and adjusting your portfolio to maximize returns while managing risk.

When you invest in a Token Metrics index, you're essentially hiring sophisticated AI technology to build and manage your crypto portfolio professionally. You get instant diversification across multiple tokens, automatic rebalancing when market conditions change, protection from common investing mistakes, and access to opportunities you'd never find independently.

The beauty of this approach is simplicity. You don't need to understand blockchain technology, read complicated whitepapers, or analyze trading charts. The AI handles complexity while you focus on your life and watch your investment grow.

Why Beginners Should Start with Indices Instead of Individual Tokens

New investors often make the mistake of buying individual cryptocurrencies based on social media hype, friend recommendations, or price momentum. This approach leads to several problems that indices elegantly solve.

• Individual token selection requires expertise most beginners lack. How do you evaluate whether a cryptocurrency's technology is legitimate or vaporware? How do you determine if tokenomics are sustainable? How do you identify scams before they steal your money? Without experience, these questions prove nearly impossible to answer correctly.

• Concentration risk destroys portfolios quickly. If you invest everything in three tokens and one fails catastrophically, you lose a third of your capital immediately. Indices spread risk across 10-30 carefully vetted assets, ensuring single failures don't devastate your portfolio.

• Emotional decision-making causes most investment losses. Fear drives panic selling during downturns. Greed drives buying at market tops. FOMO drives chasing pumps into overvalued assets. AI indices eliminate emotion entirely, maintaining discipline when human investors make terrible decisions.

• Time requirements prove unsustainable. Successfully managing individual crypto positions requires hours daily monitoring markets, reading news, analyzing charts, and executing trades. Most people with jobs and families can't sustain this commitment. Indices require maybe 30 minutes quarterly.

For beginners, indices provide the perfect entry point—immediate diversification, professional management, emotion-free investing, and minimal time commitment. You can start small, learn gradually, and scale up as you become comfortable.

Step-by-Step: Your First 30 Minutes in Crypto Indices

Ready to begin? Follow this simple roadmap to go from complete beginner to invested in under 30 minutes.

Minutes 1-5: Create Your Token Metrics Account

Visit the Token Metrics website and click the sign-up button. You'll need to provide basic information including email address, create a secure password, and verify your email through the confirmation link sent to your inbox.

Token Metrics offers a 7-day free trial, allowing you to explore the platform thoroughly before committing financially. Take advantage of this trial to familiarize yourself with available indices, review performance data, and understand the interface.

During signup, you'll choose a subscription tier. For beginners, start with the basic tier that provides access to all indices and essential features. You can upgrade later if you want additional tools like advanced analytics or trading signals.

Minutes 6-15: Explore Available Indices and Choose Your Strategy

Once logged in, navigate to the Indices section. You'll see several different index options, each designed for specific investment strategies and risk profiles. Here's how to choose:

• Conservative Investor Grade Index: If you're risk-averse, older, or investing money you can't afford to lose, start here. This index focuses on established cryptocurrencies with strong fundamentals—primarily Bitcoin, Ethereum, and select large-cap altcoins. Returns are more moderate but volatility is lower.

• Balanced Growth Index: If you're comfortable with moderate risk and seeking steady growth, this balanced approach combines major cryptocurrencies with promising mid-cap projects. It offers stronger growth potential than conservative indices while maintaining reasonable risk levels.

• Aggressive Growth Index: If you're young, risk-tolerant, and seeking maximum returns, this index targets smaller-cap tokens with explosive potential. Volatility is higher but so are potential returns. Only choose this if you can stomach significant price swings.

• Sector-Specific Indices: Token Metrics offers indices focused on specific crypto sectors like DeFi, Layer-1 blockchains, AI tokens, or memecoins. Choose these if you believe strongly in a particular sector's growth potential.

For most beginners, starting with the Balanced Growth Index makes sense. It provides diversification, reasonable growth potential, and manageable volatility. You can always adjust later as you learn more.

Minutes 16-20: Determine Your Investment Amount

How much should you invest in crypto indices? This critical decision depends on your financial situation, but follow these general guidelines.

• Never invest money you need for living expenses. Crypto remains volatile. Only invest money you won't need for at least 3-5 years and that you could lose entirely without affecting your lifestyle.

• Start small while learning. If you're completely new to crypto, consider investing just $500-1,000 initially. Get comfortable with the process, experience some market volatility, and understand how indices work before committing larger amounts.

• Follow the 5-20% rule. Financial advisors typically recommend allocating 5-20% of your total investment portfolio to cryptocurrency depending on age and risk tolerance. If you have $50,000 in traditional investments, consider $2,500-10,000 in crypto.

• Use dollar-cost averaging. Rather than investing your entire amount immediately, spread purchases over 3-6 months. If you plan to invest $6,000, invest $1,000 monthly. This reduces timing risk and smooths out entry prices.

Write down your investment amount now so you don't invest emotionally based on market conditions. Stick to your predetermined plan regardless of whether markets are surging or crashing.

Minutes 21-25: Set Up Your Exchange Account and Funding

To invest in Token Metrics indices, you need to purchase the recommended cryptocurrencies through a cryptocurrency exchange. Major exchanges include Coinbase, Kraken, Binance.US, or Gemini.

• Choose one exchange and create an account. You'll need to provide identification for regulatory compliance—typically a driver's license or passport. This verification process usually takes a few hours to a few days, so you might need to pause here and return once approved.

• Once verified, connect a funding source. Most beginners use bank transfers, though credit cards and debit cards work too (often with higher fees). Transfer funds from your bank account to your exchange account. Bank transfers typically take 1-3 business days but have lower fees than card payments.

• For security, enable two-factor authentication (2FA) on your exchange account immediately. This adds an extra security layer requiring a code from your phone when logging in, protecting against unauthorized access.

Minutes 26-30: Make Your First Index-Aligned Purchases

Now comes the exciting part—your first crypto investments. Token Metrics indices provide specific recommendations about which tokens to buy and in what proportions.

Review your chosen index's current composition. It might show something like: 40% Bitcoin, 25% Ethereum, 15% Solana, 10% Avalanche, 10% Polkadot. These percentages tell you how to allocate your investment.

If investing $1,000, you'd buy approximately $400 in Bitcoin, $250 in Ethereum, $150 in Solana, $100 in Avalanche, and $100 in Polkadot. Round to reasonable amounts given minimum purchase requirements.

On your exchange, navigate to each cryptocurrency and execute market buy orders. A market order purchases at current market price immediately. For beginners, market orders are simplest—don't worry about limit orders or advanced trading features initially.

After purchasing, you can either leave assets on the exchange (simplest for beginners with small amounts) or transfer to a personal wallet (more secure for larger holdings). Initially, leaving assets on a reputable exchange is fine. Learn about wallet security as your investment grows.

Congratulations! You're now invested in crypto indices. The entire process took under 30 minutes.

Understanding What Happens Next: Ongoing Management

After your initial investment, understanding ongoing management helps you stay invested successfully.

Token Metrics indices rebalance regularly as market conditions change. You'll receive notifications when adjustments are recommended. These typically occur weekly, bi-weekly, or monthly. Follow the recommendations by making small adjustments—usually just a few minutes to execute.

Check your portfolio monthly rather than daily. Cryptocurrency volatility means dramatic day-to-day swings. Monthly reviews allow tracking overall trajectory without getting caught up in noise. Token Metrics provides performance tracking tools showing returns over various periods and comparing to benchmarks.

Occasionally rebalance your overall portfolio allocation. If crypto has grown from 10% to 25% of your total investments, consider taking profits to rebalance back to your target. This ensures you don't become overexposed during market euphoria.

Common Beginner Questions Answered

New investors often have the same questions and concerns. Here are straightforward answers.

"Is crypto investing safe?"

Cryptocurrency carries risk like all investments. However, indices are far safer than buying random tokens. Token Metrics' AI vetting filters out scams, diversification reduces risk, and professional management protects against emotional mistakes.

"What if I lose everything?"

This is why you only invest money you can afford to lose. Crypto indices are diversified across multiple assets, making total loss extremely unlikely. Individual tokens can fail, but portfolios of 10-30 carefully selected tokens provide resilience.

"How much can I make?"

Token Metrics indices have historically delivered returns significantly exceeding Bitcoin and Ethereum. Conservative indices might return 100-200% annually during bull markets. Aggressive indices could deliver 300-500%+. Bear markets may see negative returns—long-term holding is essential.

"What about taxes?"

Cryptocurrency transactions trigger capital gains taxes in most jurisdictions. Keep records of all transactions. Token Metrics provides transaction tracking to simplify tax preparation. Consult a tax professional for personalized guidance.

"Do I need a special wallet?"

For beginners with smaller amounts, keeping crypto on a reputable exchange is acceptable. As holdings grow beyond $10,000, consider a hardware wallet for additional security.

"Can I start with just $100?"

Yes! While larger amounts generate more absolute returns, you can start with any amount. Use small initial investments to learn and build confidence.

Your 30-Day Action Plan for Success

You've made your first investment. Here's your plan for the next 30 days to build upon this foundation.

• Days 1-7: Leave your investment alone. Resist checking prices constantly. Use this week to explore Token Metrics' educational resources and learn about the cryptocurrencies in your index.

• Days 8-14: Conduct your first performance review. Don't react emotionally to gains or losses. Review any rebalancing recommendations and execute them if suggested.

• Days 15-21: Evaluate whether your initial allocation feels appropriate. If you chose dollar-cost averaging, make your second purchase following your predetermined schedule.

• Days 22-30: Reflect on your first month. Did you stay calm during volatility? Are you confident in your strategy? Decide whether to continue your current approach or make adjustments.

After 30 days, continue monthly reviews, execute recommended rebalancing, and stick to your dollar-cost averaging schedule. Successful investing is about consistency and discipline, not constant activity.

Conclusion: Your Journey Begins Now

Cryptocurrency investing doesn't require technical expertise, complicated processes, or endless time commitment. Token Metrics AI Indices make professional-grade crypto investing accessible to anyone willing to follow a simple, proven system.

You've learned what indices are, why they're perfect for beginners, and exactly how to get started in 30 minutes. You understand ongoing management, have answers to common concerns, and possess a 30-day action plan for success.

The only thing remaining is action. Every day you delay is a day you're not participating in one of the most significant wealth creation opportunities of our generation. Markets don't wait for perfect timing—they reward those who begin with imperfect action.

Your 30-minute journey to crypto investing starts with a single click. Sign up for Token Metrics' 7-day free trial today, explore the indices, and make your first investment following this guide. Your future self will thank you for taking action now rather than watching from the sidelines as others build life-changing wealth.

The tools are available. The guidance is clear. The opportunity is now. Begin your Token Metrics journey today.

Research

Dogecoin (DOGE) 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 DOGE

Crypto is transitioning into a broadly bullish regime into 2026 as liquidity improves and adoption deepens.

Regulatory clarity is reshaping the classic four-year cycle, flows can arrive earlier and persist longer as institutions gain confidence.

Access and infrastructure continue to mature with ETFs, qualified custody, and faster L2 scaling that reduce frictions for new capital.

Real‑world integrations expand the surface area for crypto utility, which supports sustained participation across market phases.

This backdrop frames our scenario work for DOGE. The bands below reflect different total market sizes and DOGE's share dynamics.

Read the TLDR first, then dive into grades, catalysts, and risks.

 

 

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 lead metric, TM Grade, is 22.65 (Sell), and the trading signal is bearish, indicating short-term downward momentum. Price context: $DOGE is trading around $0.193, rank #9, down about 3.1% in 24 hours and roughly 16% over 30 days. Implication: upside likely requires a broader risk-on environment and renewed retail or celebrity-driven interest.

Live details: Dogecoin Token Details → https://app.tokenmetrics.com/en/dogecoin

Buy DOGE

Key Takeaways

• Scenario driven, outcomes hinge on total crypto market cap, higher liquidity and adoption lift the bands.
• Technology: Technology Grade 54.58% (Activity 36%, Repository 72%, Collaboration 61%, Security N/A, DeFi Scanner N/A).
• TM Agent gist: cautious long‑term stance until grades and momentum improve.
• Education only, not financial advice.

Scenario Images

8T:   

16T:   

23T:   

31T:   

Why Consider the Indices with Top-100 Exposure

Diversification matters. Dogecoin is compelling, yet concentrated bets can be volatile. Token Metrics Indices hold DOGE 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

What Is Dogecoin?

Dogecoin is a peer-to-peer cryptocurrency that began as a meme but has evolved into a widely recognized digital asset used for tipping, payments, and community-driven initiatives. It runs on its own blockchain with inflationary supply mechanics. The token’s liquidity and brand awareness create periodic speculative cycles, especially during broad risk-on phases.

Technology Snapshot from Token Metrics

Technology Grade: 54.58% (Activity 36%, Repository 72%, Collaboration 61%, Security N/A, DeFi Scanner N/A).

 

 

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

FAQs

Can DOGE reach $1.00?

Yes, multiple tiers imply levels above $1.00 by the 2027 horizon, including the 23T Base and all 31T scenarios. Not financial advice.

Is DOGE 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
Join Indices Early Access
Want exposure Buy DOGE on MEXC

Disclosure

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

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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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