Crypto Creation — How will your new token be priced?
May 24, 2022
You have your token (or at least the idea), now how do you best offer it to the world?
In any quickly evolving industry, there is significant advantage to being an early adopter. In no field has this concept been made more clear than in crypto. The dramatic increase in interest in crypto is self-evident and what used to be a somewhat niche interest of the technically minded, has exploded onto the stage and into all layers of society worldwide.
Alongside this new enthusiasm for the growing industry as a whole, there has been a corresponding increase in the desire to directly take part in these markets, through the creation of new tokens. What was once the domain of the technically minded has now spread to those who are new to the concepts.
Fortunately, in the modern crypto space, a multitude of tools have been developed to allow the creation of new tokens and coins. Of course, a new token is of little use if it has no means of distribution and this is a hurdle that any entrepreneur must eventually surmount. The question then remains, what is the best method to tackle this problem?
Launchpad Sites 🚀
As the name suggests Launchpad sites, such as Pink Finance offer the opportunity to get in on the ground floor for new cryptocurrency opportunities. A primary benefit of these sites is their focus on new tokens, allowing them to be listed and traded before more established exchanges may be willing to host them. This focus on new currencies makes them a natural first stop for the entrepreneur trying to gain an initial market for their tokens.
Furthermore on top of this discovery service, many of these sites, such as Guarda and CoinTool, actually offer the capability of easily creating new tokens, meaning the potential obstacle of technical know-how is overcome with a simple input form.
However, one issue of this launchpad method is missing out on potentially the most exciting, and certainly, the most newsworthy element of crypto markets, that being the absence of dynamic pricing. This process of ever changing values is known as the ‘price discovery’ process, which the launchpad method misses out on, with the price being static on its listing.
Exchanges, such as Coinbase and Binance, are among the most prominent sites offering crypto services. By making the process of getting involved in crypto as easy as buying any other product online, exchanges offer a familiarity of use to new users, creating a greater sense of trust. Nevertheless, this ease of buying currencies has not transferred over to the ability to list your own currency on them.
Whilst there are clear advantages to having your crypto listed on an exchange, the price discovery process being a major example, there do exist hurdles that could impede your listing. Many exchanges require an established history of the currency or large payments before allowing new tokens to be traded.
Getting past these issues may not be the end of your issues either, as due to the exchange taking complete control over all listings they may not give your currency the place you feel it deserves, keeping it away from the front page and therefore away from the potential customers you want.
Controlling the Exchange
With these discussions it can be seen that these options do offer the capability to begin a journey into crypto with your own token, however, it is clear that there are obvious setbacks. How then can the benefits of both token launchpads and exchanges, in regards to coin creation, be obtained; utilizing price discovery, access to customers looking for new and innovative tokens, as well as the features present on modern exchange sites? 🤔
Fortunately, there exists another method that would, initially, seem completely unattainable. By setting up your own exchange, third parties can be circumvented, offering complete control over your newly created currency, and the market it lives on. In the past, this would be a mammoth undertaking that would require large amounts of resources — both financial and human — that are completely out of reach for all but large and dedicated teams.
Now, however, through the use of white-label crypto tools the barrier to entry has been brought so low that you could have a crypto exchange up and running within half an hour, requiring nothing more than your computer and some time.
White-label means the ability to create an exchange, and then personalize many aspects of it, from the currencies you desire to trade in, right down to the specific visual flair that will make your brand stand out. ✨
Using HollaEx, and setting up an exchange gives you control over the environment of your newly created ERC20, BEP20, or TRC 20 token, as well as bringing all the benefits of hosting your own exchange on top, taking no more effort than a few input boxes, and best of all, requiring zero background in computer science.
Once the exchange has been created and deployed you will have all the benefits of running an exchange and can market your token front and center of the site, such that any visitors will be drawn to it, as well as now taking part in the price discovery process allowing your coin to gain value as its demand grows.
Creating a new crypto token or coin is not the final step in getting into the crypto market, once this process is complete, there is a consideration on how this new asset will actually be marketed and traded.
There exists various options that can be pursued by the entrepreneur each with its own benefits and drawbacks, and each entrepreneur must make the decision on what they deem most suitable for their asset, to achieve the maximal possible result.
Open-source solutions like HollaEx, offer new and innovative approaches to the above problems, and with DIY options that won’t ask for anything out of your (physical or crypto) wallet 👛, there has never been a better time to give this new avenue a go.
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