New Ways To Launch A Token

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The endless possibilities of cryptocurrencies have seen a lot of businesses show interest in the token economy and the overall blockchain space. 

Apart from the fact that cryptocurrencies enable a departure from the bureaucracy of centralized banking systems, another obvious reason driving this interest is the fact that cryptocurrencies are a gateway for companies looking to create tokens. 

By launching a token, companies get access to cheaper and flexible alternatives for raising funds while improving the utility of their enterprise.

Initially, the only way one would launch a cryptocurrency was by forking the Bitcoin code and changing a few attributes to create a token.

Then, after the ERC-20 protocol was established, launching tokens on Ethereum’s blockchain became the new trend. It was an easier alternative that allowed developers to skip most of the technicalities and launch their tokens right away; the final step being the distribution of the token by listing it on as many exchanges as possible.

With reports of single-person run projects such as Useless Ethereum token managing to raise close to $200,000, the 2017 era seemed as if everyone was launching their own ICO. 

Nowadays, launching a token directly on the blockchain is counter-intuitive. Regulations around blockchain-based companies are stringent especially with the prevalence of ICO scams. 

As a result, investors are gravitating towards exchange tokens based on the credibility of the exchange. Initial Exchange Offerings (IEO) have become popular as they afford companies a ready market for their tokens from the get-go. 

Companies like Binance owe much of their success to exchange tokens. He-Yi, the company’s co-founder says that one of the secrets to the company’s unprecedented growth is the BNB token. 

An exchange token like BNB benefits the company since it reduces the listing cost while incentivizing the loyalty of the users on the platform. Also, investors buy tokens with the assumption that the exchange has conducted due diligence giving the token credibility. Besides, right from the start, the token has a ready market of traders on the exchange. 

Since the only difference between an ICO and IEOs is that IEOs sell tokens through an exchange, investors find it easier to buy tokens through an exchange as standard procedures only have to be followed once. 

Furthermore, IEOs give investors the guarantee of being able to sell their token at a later date as opposed to ICOs that often fail to be listed.

IEOs might be the popular alternative; however, they are heavily reliant on the exchange.  This makes the integrity of the exchange platform a critical factor.  

Furthermore, some exchanges are accused of accepting money to list tokens. Therefore, getting a token listed can become quite costly. The best alternative could be to launch your own exchange. 

While most solutions first focus on building the token and eventually dealing with distribution, the logical alternative that allows you to bypass the hurdles of getting the token listed is to launch on a self-made exchange platform.

Turnkey solutions such as the HEX Exchange Kit has already helped companies set up exchange platforms with tools to build a trading platform, add wallets and for the facilitation of token creation.  

Advancements in the blockchain and cryptocurrency space make launching your token more accessible in different ways.  You can either choose to design an entirely new blockchain with customized attributes or you can launch a token on Ethereum’s blockchain and later list it on popular exchanges. 

The best alternative that gives you convenience and flexibility is to launch on an exchange you control. After all, the most popular methods to do tokens revolve around launching an exchange. What better way to do it than on a self-controlled exchange platform that cuts costs while giving you full autonomy?