Breaking down Zora’s latest ‘Content Coin’ fad
Zora, a social media protocol, recently experienced a resurgence with a significant increase in token creation and trading volume. Following a dip after the launch of its ZORA token, which faced criticism, the protocol has seen trading prices rise by 227% in one week, with approximately 40,000 tokens created—a record for Zora. Zora functions similarly to a tokenized social network where creators post content that can be traded as ERC-20 tokens. Creators earn a portion of trading fees when their posts are bought, creating an incentive structure to generate popular content. Zora's unique model allows for a revenue stream through trading of Creator Coins, with substantial volume derived from these trades. Comparatively, this model offers higher potential earnings for creators than traditional social media platforms.
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