Raoul Pal Looks Into ApeCoin (APE) – Calls Social Tokens A Big Thing

Economist and market strategist, Raoul Pal, shares about his move into investments that he describes as “utter insanity,” but there’s more boiling under the hood.

Pal shared his personal thoughts in blog post, talking about his journey into the non-fungible token (NFT) market, and buying a $460,000 (140 ETH) Bored Ape.

The economist strongly believes that NFTs like the Bored Ape Yacht Club (BAYC) collection are the beginning of a new trend of social tokens, or crypto assets, where community is the key.

“My view is that the future lies in social tokens and that was the way forward. You start with NFT communities (the Thousand True Fans model) and then built out a social graph. I had heard about the potential social token around BAYC so that got me focussed, outside of the glamour of the news flow.”

Pal predicts that social tokens will be eventually integrated into many different parts of society and economies. According to him, Bitcoin (BTC) could also be viewed as a social token, but with different community and features.

“I BELIEVE in social tokens as Universal Basic Equity and the future of culture and community, municipalities and charities, of business models and economies. After all, BTC is just a social token with unique attributes and all of these social tokens work for the various models of digital sovereign states, which is where I think we are headed…

I don’t think social tokens are get-rich-quick schemes but get rich slowly IF the community builds utility that has long-lasting value. Build utility, a vibrant, growing community and some quantifiable scarcity and you WILL build value over time, and everyone can participate – either via investment in the utility token (as deferred future utility) or by adding value to the community and being rewarded in tokens. The brand or creator is on an equal footing. All incentives are aligned.”