THE BUSINESS STRATEGY OF THE UTILITY TOKEN ADOPTION BY INVESTORS IN A DEVELOPING COUNTRY

Abstract

Utility tokens, which are cryptocurrencies on a smart contract blockchain that serve a specific purpose within the ecosystem of a crypto project (Shirole et al., 2020), have exploded in popularity among Thai investors over the past few years due to the fact that their value tends to increase much more rapidly than that of traditional assets. This study attempts to analyse the variables influencing Thai investors’ adoption of utility tokens. A binary logistic regression was conducted to find factors of statistical significance. The results indicate that gender, level of education, income, savings, the types of financial instruments an investor owns, and the investor’s use of social media platforms are significant determinants of utility token adoption. The article argues that when planning marketing efforts, organisations issuing utility tokens should consider their clients’ gender, level of education, income, and savings, as these factors have a substantial influence on utility token adoption. In addition, in order to increase the adoption of utility tokens by experienced investors, brokers or financial advisors must evaluate the customer’s current financial holdings in order to develop successful financial plans and provide appropriate guidance to customers.