Brand Tokenization and Monetization Through Cryptocurrencies

Hegadekatti, Kartik (2017): Brand Tokenization and Monetization Through Cryptocurrencies. Published in: Capital Markets: Asset Pricing & Valuation eJournal , Vol. 09, No. 194 (27 October 2017)

Abstract

A Company's Brand image is an intangible asset. Though Initial Public Offerings (IPOs) try to capture Brand Value, a company's share value is a result of several factors like performance, initial capital, investor identity etc. Moreover, time needed for a company to be listed runs into several months. Therefore, immediate capitalization of Brand Value is not possible. Initial Coin Offerings on the other hand deliver a wide range of possibilities not provided by IPOs. Most important among them is Brand Tokenization and Monetization.

This paper explores Brand Tokenization and Monetization through ICOs (Initial Coin Offerings). Firstly, the concept of Brands and cryptocurrencies are explained. Then the concept of ICOs is discussed. I envisage a scenario where a company tokenizes its Brand and attempts to monetize it. We then evaluate the advantages that can accrue from such a venture. The paper concludes as to how Brand Tokenization and monetization can be realized through cryptocurrencies and its impact on future businesses.

• Item Type: MPRA Paper
• Language: English
• Keywords: ICO, IPO, Bitcoin, Blockchain, Ethereum, Ether, Brand
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes

References

[1] Hegadekatti, Kartik and S G, Yatish, The K-Y Protocol: The First Protocol for the Regulation of Crypto Currencies (E.g.-Bitcoin) (February 13, 2016).

[2] Hegadekatti, Kartik and S G, Yatish, Roadmap for a Controlled Block Chain Architecture (August 13, 2016).

[3] O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 272. ISBN 0-13-063085-3.