The digital era has come with different technological advances and inclusive participation from the blockchain ecosystem. This spun from the existence of Bitcoin and other cryptocurrencies like Ethereum and the development of innovative features like decentralized finance (DeFi) and non-fungible tokens.
Likewise, businesses are also leveraging the digital currency space to increase investors’ and partners’ interests in their companies. With crypto tokens made available for businesses, there is a high tendency for increased business investment and more opportunities in the business ecosystem. Thus, we created this guide to give you an insight into how you can develop a crypto token for your business.
What is a Crypto Token?
When you hear the word “crypto token,” think of it as a unique digital currency used to launch a developmental project for any business form. Crypto tokens are fungible tokens that you can trade their assets or utilities on their blockchains. Crypto tokens are used to raise funds in a crowd sale. However, they are also used as a substitution for other things like securities or physical assets. Crypto tokens are created, circulated, distributed, and sold via a standard initial coin offering (ICO) to fund a project.
Types of Crypto Tokens
Business tokenization has proven over time to be beneficial for businesses that leverage token creation to extend their businesses into the digital currency world. But it is crucial to examine the different kinds of crypto tokens businesses can leverage and take advantage of it. Thus, we will include a short description of each type of crypto tokens for examination.
When you consider capitalization in a business application, the common tokens have less focus without many purposes. These tokens are created for general means and get listed on crypto exchange platforms after successful crowdfund schemes such as initial coin offering (ICO) and initial exchange offering (IEO).
Security tokens are regarded as crypto tokens that are attached to securities and represent real-time assets. These real-time assets used in creating the security tokens can be bonds, shares, and other properties that can be digital or physical equivalent. Physical assets have security converted into tokens as the parties involved sign the smart contract.
The property is split into security tokens wherein investors can invest in any token of their choice. It is noteworthy that you form compliance with the terms and conditions of the Securities and Exchange Commission while creating your token. At the same time, security tokens are of three kinds: asset-based, debt, and equity.
Think of utility tokens as tokens that are specifically created for specific purposes or utilities. These tokens are created by an organization and employed to work out particular tasks. As opposed to security tokens, there cannot be used as direct investment. But they serve specific tokenization purposes.
Utility tokens can add more advantages to the platform tokens while serving specific purposes. An instance is the Binance crypto token which you can only use on the Binance trading platform and nowhere else.
Why Businesses Need Crypto Tokens: Benefits
As much as there is global adoption of cryptocurrency, individuals and institutions still query the importance of crypto tokens for businesses. There are questions surrounding business attempts to replace Bitcoin and other cryptocurrencies. But businesses that are more focused on incorporating tokens into their businesses will make crypto enthusiasts loyal customers.
Thus, we will examine the benefits attached to businesses having crypto of theirs.
- For incentives
Leveraging crypto tokens to create an incentive system for company employees involves them in the crypto ecosystem. Aside from owning a portion of companies’ crypto portfolios via a reward system, the crypto token system can pay employees’ salaries.
- Encourage the marketplace
One of the ways to earn more partnerships for businesses is via token creation. When you have a successful ICO, that explains to interested investors and partners that your business is well recognized and supported by individuals in the business clime. As such, investors and partners will be interested in your business and crypto platform.
- To increase network value
When you create your token, it appears to the public as shares or stock backed by a venture hoping that it will mature faster than the economy and grow more quickly. As a result, when your private network has fast development than the entire economy, crypto holders will want to obtain more of your token value than using fiat currencies while transacting with your business.
How to Develop the Best Token for Your Business
Every business interested in leveraging the virtual currency world will create its token for ease of access and extensive business participation from individuals. Thus, it is only natural to examine the process involved in developing your business crypto token. It can process different transactions or record untampered information before, during, and after every transaction.
When you consider the process of selecting the right entity to develop your business crypto-token, you would agree that you need to consider different things. Those things include accessibility upon creation, smart contracts creation, coding, and developmental features that can be added based on preference.
To save you from this stress, PTPWallet Token Creation Process is recommended as the best token creation company in the virtual currency world. The edge PTPWallet offers businesses willing to leverage the token economy like yours is creating smart contracts and instant accessibility for you and your customers.
This means that we save you from the stress of coding by creating smart contracts based on your token demand and adding them immediately to your PTPWallet network. With this, your customers or participants have quick access to the token accounts and conduct transactions immediately.
We believe that each business has its requirement. We put that into consideration while creating your ERC-20 or BEP-20 Token. Regardless of your choice for either or both, we will create your token via smart contract generation. Then, we will add it directly to your PTPWallet network for transactions. With that, you are creating your Binance or Ethereum token.
Crypto Token FAQs
What is the purpose of tokens?
Crypto tokens can serve different purposes, such as being an investor’s stake in your business or serving an economic purpose like a legal tender. This explains that token holders can purchase items with their business tokens or trade them to profit.
What is the difference between a crypto coin and a crypto token?
A crypto coin is a digital currency that can be used as a payment option. Still, a crypto token can serve different purposes like trading purposes, holding as a store of value, and a currency form.
What are the kinds of tokens available on blockchains?
The different kinds of tokens available on blockchains are asset, common, currency, security, and utility tokens.
With the explosion and innovation happening in the virtual currency world, individuals and business owners are constantly seeking ways to engage the crypto world and leverage it for their businesses. But consulting the services of a credible crypto company like PTPWallet for your crypto token creation is essential.
Apart from making your token available immediately in your PTPWallet, you don’t have any reason to undergo coding stress. We take it upon ourselves to create the smart contracts based on your requirements and create your ERC-20 or BEP-20 token. Likewise, we can create both for you. You only need to fill in details of your token requirements and have your tokens made and deposited in your wallet.