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Review of Blockchain Tokens Creation and Valuation

Author

Listed:
  • Oana Marin

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Tudor Cioara

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Liana Toderean

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Dan Mitrea

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

  • Ionut Anghel

    (Computer Science Department, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania)

Abstract

Blockchain and tokens are relatively new research areas insufficiently explored from both technical and economic perspectives. Even though tokens provide benefits such as easier market access, increased liquidity, lower transaction costs, and automated transactional process, their valuation and price determination are still challenging due to factors such as a lack of intrinsic value, volatility, and regulation making trading risky. In this paper, we address this knowledge gap by reviewing the existing literature on token creation and valuation to identify and document the factors affecting their valuation, investment, and founding, as well as the most promising domains of applicability. The study follows the PRISMA methodology and uses the Web of Science database, defining clear research questions and objective inclusion criteria for the articles. We discuss token technical development, including creating, issuing, and managing tokens on an Ethereum blockchain using smart contracts. The study revealed several key factors that significantly impact the field of tokenomics: demand and supply, social incentives, market conditions, macroeconomics, collective behavior, speculation, and inclusion in index funds. The most relevant use cases of blockchain and tokens are related to the digitization of virtual and physical assets, accountability, and traceability usual in smart grids or supply chains management, social governance, and art and gamification including metaverse.

Suggested Citation

  • Oana Marin & Tudor Cioara & Liana Toderean & Dan Mitrea & Ionut Anghel, 2023. "Review of Blockchain Tokens Creation and Valuation," Future Internet, MDPI, vol. 15(12), pages 1-27, November.
    • Handle: RePEc:gam:jftint:v:15:y:2023:i:12:p:382-:d:1289001
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    References listed on IDEAS

    as
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    2. Jiri Chod & Nikolaos Trichakis & S. Alex Yang, 2022. "Platform Tokenization: Financing, Governance, and Moral Hazard," Management Science, INFORMS, vol. 68(9), pages 6411-6433, September.
    3. Adhami, Saman & Giudici, Giancarlo & Martinazzi, Stefano, 2018. "Why do businesses go crypto? An empirical analysis of initial coin offerings," Journal of Economics and Business, Elsevier, vol. 100(C), pages 64-75.
    4. Horky, Florian & Rachel, Carolina & Fidrmuc, Jarko, 2022. "Price determinants of non-fungible tokens in the digital art market," Finance Research Letters, Elsevier, vol. 48(C).
    5. Alessandra Cretarola & Gianna Figà-Talamanca & Cyril Grunspan, 2021. "Blockchain and cryptocurrencies: economic and financial research," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 44(2), pages 781-787, December.
    6. Zaheer Allam & Ayyoob Sharifi & Simon Elias Bibri & David Sydney Jones & John Krogstie, 2022. "The Metaverse as a Virtual Form of Smart Cities: Opportunities and Challenges for Environmental, Economic, and Social Sustainability in Urban Futures," Post-Print hal-03997438, HAL.
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