When we talk about cryptocurrency, token is the word that is talked about the most. With so many people joining the community, the term gets confused with coins all the time. Even if people know what a token is, they are likely to think that launching one might take a lot of effort and technical knowledge, which is also not true.
The difference between coins and tokens is very simple. While coins like Bitcoin, Dogecoin, or Ethereum run on their own blockchain, tokens run on top of an existing blockchain. So, if you are interested in knowing about crypto tokens and how you can launch them, then you might be at the right place. Here is everything to know about launching a crypto token.
Basics of crypto tokens
Let’s start by taking an example; if you consider Ether, it runs on Ethereum blockchain technology as it is a native token to Ethereum. However, many other types of tokens out in the market run on the Ethereum platform. Hence, they can easily be defined as crypto that runs with the help of an existing blockchain.
While coins run on their own digital ledgers and work as real money, i.e., hold value in the sense that they are used to transfer wealth, tokens rely on underlying networks to operate. Tokens generally represent contracts for almost anything. You can use tokens to represent tickets to a concert, redeemable flying points, assets to a company, etc.
How are tokens released in the market?
The most common way of releasing a token is by going through the process of ICO, also known as initial coin offering. The process is fairly similar to the IPO, which stands for initial public offering. Initially, the token is introduced in an event, and after that, it is available to buy on the public market after the ICO.
Any new token that one wants to create is introduced via crowd-sales, and the best part is, anyone can create them. Anyone who is interested will invest in your token or fund it using the cryptocurrency of the blockchain you are using. However, you must be aware of fraud, as crowd-sale is a potential site for scandals.
How to launch a token?
The process of launching a token is not complicated at all. Nowadays, many platforms allow people to create their own tokens. You need almost no knowledge of coding to create your own token. Many applications allow you to pick up a name for your token and a symbol for it.
Your token can represent literally anything you want. The initial coin offering that we mentioned earlier can also be skipped if you are making a coin for a small community or even just your friends. Tokens are relatively faster to build, easier to manage, and more pocket-friendly.
Just keep in mind that you should not crowd-sell the token that you created just out of curiosity, as many people may charge you for misrepresentation or even fraud. What are you waiting for now? Get on any application offering to make a token, and create a token of your choice. If you are looking more into tokens, then you might as well look at Dog Show Token, Shiba Inu and Baby Doge.