The crypto market is growing these days exponentially. With the increased adoption of crypto, the use of crypto tokens is also expanding. According to the market analysis, the market value grew from $776.4 billion in January 2022 to over $2.3 trillion in December 2022. Due to the rising market value, many people getting inclined towards cryptocurrency investment.
By creating a new crypto token, you can also become a part of this financial wave. And also you can earn more revenue through it. But before getting started with the crypto token development process, you need to know what does crypto token mean? How to create a crypto token?
So in this article, let us discover the types of crypto tokens and their revenue-generating factors. We shall start with…
What is a crypto token?
A cryptocurrency token is a digital asset traded on a blockchain network that is used for various purposes. It is more flexible because you can use crypto tokens in exchange for goods and services. Crypto tokens are useful in many ways such as for investment, storing value, and making purchases. And also tokens are used to raise funds.
Basically, tokens are built on top of an existing blockchain. Crypto Tokens run on software protocols comprising smart contracts that outline the tokens’ roles & characteristics and the network’s engagement rules. As it resides on a respective blockchain, they possess transparency. With that, anyone can view and verify the protocol rules and transactions.
Up next let us see the…
Types of Crypto Tokens
Crypto tokens are divided into two major classifications. They are Fungible tokens and Non-fungible tokens.
Fungible tokens are known as the representation of an asset on a blockchain that is interchangeable, divisible, and non-unique. The prime example of fungible tokens is cryptocurrencies because each coin has the same value as any other coin of the same type at any given moment. It is further classified into utility and security tokens.
Utility tokens commonly provide user access to products and services that are blockchain-based. Security tokens are like stocks and shares represented by digital tokens on the blockchain. These are categories of cryptographic tokens that are essentially uniform or identical and that may be freely exchanged for other fungible tokens of the same category. Such tokens apply to both real-world & digital assets and connect to the items we use daily.
Non-fungible tokens represent unique collectible items as digital assets. You cannot split or exchange NFTs for other non-fungible tokens of the same type. In simpler terms, NFTs serve as unique digital identifiers that cannot be copied, substituted, or subdivided. A blockchain records them to certify authenticity and ownership.
People commonly refer to them as cryptographic assets on a blockchain with unique identification codes that differentiate each one.
They include ownership details for simple identification and transfer among token holders. Anyone can buy, sell or trade NFTs. The ownership of NFTs can be tracked in the blockchain and transferable by the owner. Anyone can make NFTs with the help of professionals.
As we discussed before, launching a token is beneficial for startups and even megacorps. So now let us discuss the…
Revenue-generating factors of crypto token development
Users commonly use Crypto tokens as a payment method for services, as voting rights in ecosystems, or as digital assets.
Besides these use cases, the token owner can earn revenue in various ways. Here we shall discover some of the effective ways to earn money.
One of the major revenue-generating factors is raising funds with crypto tokens. If a startup needs funds for their business, they can create their own token in an existing blockchain and raise funds. They have to run a crypto fundraising campaign by using popular crowd-funding methods. Such as ICO, STO, IDO, IEO, and so on. In this campaign, interested investors will buy the token and provide funds for the token owners to upscale their businesses.
Supply and Demand
The token supply is fully depend on the total number of tokens. As the supply increase, the demand for the token may decrease. It is similar to the concept of supply and demand characteristics in traditional economics. If the demand increases, the price will increase. In that case, if there is a demand for the token but there is only the least token supply automatically the price of the token will increase. On the other hand, if there is a low demand for a token but a large total supply, the price will decrease.
Using some effective strategies
As I said earlier, by using the above-given ways, startups can generate more revenue. Apart from that, they can use their own strategies to raise funds by creating a token. You can convert your own unique digital objects like art, games, music, or any other digital collectibles into NFTs. For example, Crypto kitties were the first use case of non-fungible tokens. The invention of these tokens has taken the world of Blockchain by storm. This token has application areas in KYC procedures, voting & elections, loyalty programs, copyright, supply chain tracking, medical data, art, real-world assets, virtual assets, and more. Just like crypto kitties, NFTs have numerous use cases across various domains.
Like these crypto kittens, the token owner can create their own NFT and by using their own strategies to earn more revenue. So far we have seen the revenue-generating factors of launching a token.
Now let us see…
How to create Crypto Tokens?
The Crypto token development process involves a set of sequential steps to build and design crypto tokens in the blockchain network. In order to create a secure crypto token, there are two major methods for startups. They are Creating a crypto token on their own or Hiring developers from a Crypto token development company.
Creating a token by yourself may be helpful for those who are well-versed in handling codings. Because developing a crypto token becomes more complicated due to the rapid growth of token development technologies and trends. For startups, creating a token may be tedious if they are not strong on the technology side. It may lead to the failure of the project. For a long-term purpose, it is not an apt method for a startup or a budding entrepreneur.
To create a well-functioning crypto token with all the essential features, approach a prominent Crypto token development company.
The development firm helps you to launch a token on your desired blockchain in a hassle-free manner. The dedicated developers in the firm understand your business requirements to bring your vision into reality by applying the most effective strategies. With that, you can able to launch a crypto token cost-effectively.
Overall, creating a token with the help of a reputed token development company is the best option for startups. Speaking of the best development company, Zab Technologies is one of the early birds in creating a token as per the client’s business requirements.
Why choose ZAB Technologies for Crypto token Development?
Zab technology is a prominent Crypto token development company that provides token development services using the latest technologies. We offer end-to-end Crypto token development services and unrivaled support that help your business stand ahead in the industry. Our group of experts uses the most cost-effective methods to keep your development cost in a budget-friendly manner and with that, we provide a cost-effective way to create a Crypto token. Our developers are capable of handling complex projects in a hassle-free manner. So, start your dream business in token development with the hands of Zab Technologies.