With an increasing number of new businesses embracing blockchain technology and cryptocurrencies, the idea of creating a crypto token has also gained appeal, especially since many blockchain platforms are open-source and free.
In this article, we look at crypto tokens and what you need to know as a business to develop and launch them successfully.
If you are considering developing a crypto token, then it is best to get in touch with a professional crypto token development company such as XValley Technologies who can help you establish your presence in the crypto space and generate revenue for your business.
What are crypto tokens?
Crypto tokens are units of value developed on top of existing blockchains by various crypto organisations and projects. The most common blockchain platforms used to create a crypto token are Ethereum, Tron, and Binance Smart Chain.
For example, the Ethereum blockchain’s native token is ether (ETH), but there are also many other tokens that use the Ethereum blockchain, including DAI, COMP and CryptoKitties (Each Kitty is an ERC-721 token).
Crypto tokens can be used for a wide variety of purposes from trading, buying, and selling goods, to participating in decentralised finance (DeFi) mechanisms, playing games, or accessing platform-specific services.
Usually, companies create a crypto token in order to raise funds through crowdfunding by selling their tokens in what is called a “token sale” or crowd sale.”
There are different types of crypto crowdfunding platforms including an Initial Coin Offering (ICO), Security Token Offering (STO) and Initial Exchange Offering (IEO). Two concepts that have become very popular are the Initial Liquidity Offering (ILO) and the Initial Dex Offering (IDO).
Initial Liquidity Offerings (ILOs) have emerged as the most popular option for the launch of new tokens surpassing even Initial Coin Offerings (ICOs). Initial Dex offerings, or IDOs are tokens hosted on a decentralised exchange (DEX) and are very attractive due to their immediate liquidity and trading, and low costs for listing.
Benefits of crypto tokens
Their unique features such as anonymity, decentralisation and increased security, and their growing use in the cryptocurrency marketplace have made crypto tokens popular among crypto users and startups.
Crypto tokens are programmable, permissionless, transparent and trustless. They are programmable as they are controlled by smart contracts which carry the inherent logic and function of the token.
In this respect, they are also characterised by transparency as the rules and the transactions are viewable and verifiable by all.
They are permissionless as everyone can participate in the system and are trustless as there is no central authority.
Popular crypto tokens in the market
There are various types of tokens depending on their use, but the main ones are: common tokens, utility tokens, security tokens (asset-backed, equity and debt tokens), and non-fungible tokens.
Some of the most popular tokens among crypto traders are Binance USD, Compound, Chain link, Maker, Wrapped bitcoin and Huobi token.
How to develop and launch a crypto token for your business?
Before you move on to choosing the blockchain platform to develop your crypto token, you will first need to select the right consensus mechanism.
A consensus mechanism will ensure that all transactions are legitimate and can be added to the blockchain.
Once you have chosen your blockchain platform you will need to ensure that you are fully satisfied with the internal architecture of the blockchain as you will be unable to make any changes to the parameters of the blockchain platform after the token is deployed.
The next step is the APIs. Since some platforms do not provide any pre-built ones, you will need to get them from third-party blockchain API providers such as ChromaWay or Bitcore, to name a few. Finally, make sure that your token complies to international cryptocurrency rules and regulations.
Developing and launching a crypto token can be a significant step for your business, as a crypto token will help you reduce operational costs and expand your customer base.
A crypto token will also transform your transactions, eliminating fraud risk, providing anonymity, transparency, and security.
Leading fintech firm XValley Technologies is the ideal partner to help you access the exciting new sphere of blockchain payments and crypto transactions.
If you are considering launching your own crypto token, then get in touch with their friendly and experienced team to help you get started.
Source: Read Full Article