In our last post, we talked about crypto tokens as a tool to generate more financial freedom and also generate better brand awareness. Considering that we live in a world in which finding our own path and remaining significant in a huge market is important. Also, knowing that the best alternatives we can think of are always related to the implementation of new technologies, you may wonder: is that all that tokens have to offer? No, there’s much more, and I’d like you to accompany me to review 2 of the most important reasons why crypto projects nowadays should create their own tokens.
Improve usability and get direct support
We can get started with the thought that tokens/coins are like rewards. You can see that yourself when you think about Bitcoin since people receive BTC as a reward for mining with their IoT machines. In other words, coins can serve as an incentive to the community for performing promotion activities, giving support by voting, or mining in their network. Regardless of not all tokens being mineable, they can serve as a method to fundraise for your crypto project giving in exchange prices, services, or usability features within your platform or DApp.
Getting support from your followers doesn’t only come in the form of money. Tokens can be the base for the functions of a platform and acquiring a token is the way in which people show they want to be part of the service/product that you are offering. For example, some crypto projects use their tokens or their own coins to generate discounts for transactions or accumulate points to earn prices for fidelity.
Other crypto projects have their own coin to allow global market environments, offer a more secure money transaction without a third party intervention, or use it as the base for commercial activities to increase purchasing power through cash-back. Another important reason behind the creation of tokens is that they are a secure alternative to avoid the brutal intervention of the banking institutions or governments, to remain on the line but with more control of your money.
Of course, projects such as MintMe have their own token to improve usability within its platform, letting MINTME coin become the base of every transaction and helping regulate prices and have a frame of reference. It is worth mentioning as well that not all tokens are securities, i.e., although tokens are widely used to receive funds from supporters, not all tokens are used for ICOs, and not all tokens are a promise to share in the assets of a company or shares of a project. Nor are they just used to get service agents to work for the company, nor are they just a method of incentivizing direct investment.
Reduce costs and have more control
We have already mentioned that tokens can be used to improve the usability of a platform by implementing methods in which the token acts as a base. One of the motives behind this is cost reduction, not only for the creators but also for the token traders or followers as end-users.
Many crypto projects use tokens to implement subscription models or receive payments that will go directly to an account that they use to pay for the developments of the project without losing most of it on the way. Having a token system enables you to buy in and operate your logistics network almost for free because you are the one behind it.
Operational costs are reduced as well as the regular delay of national banks in returning your money when you need it. Can you imagine, you want to start on Friday and your money has not reached your account. Perhaps you are worried if they will make you wait for months while they supposedly verify the origins of your money, but they wouldn’t only make you wait, they would also take a chunk of your money and mess up with what you had recreated for your plans.
Having a coin/token that will allow people to enjoy your products and services worldwide and with lower fees is already a strong incentive. However, the possibilities go way beyond that. Do you have ideas on how to implement your token or why do you think it’s important to have one?
Share it with us!
Mary Schwartz