Blockchain and cryptocurrency have become more popular as the technology matures we look into seeing more real-time use cases and currency being increased into the industry. Currently, there are thousands of cryptocurrencies and tokens are available in the market and several blockchains are running as support for those cryptocurrencies. Bitcoin (BTC) is the most popular cryptocurrency and also the first use case. It is seen as a financial tool where other cryptocurrencies target other industries such as gaming, social media, eCommerce, Finance, banking, and more. Cryptocurrency has been acting as a catalyst for creating Web 3.0. Other digital projects want to use these technologies are various purposes. So, why do you want to create your own crypto token for your business? Here are the main reasons for it.
1. Rewarding Users
In any new startup company or a user, the most painful point is the acquisition phase that they have to face. These issues can be soothed by marketing your business over various channels, such as Google, and social media, but it doesn’t gain acquisition and retention. Using your own crypto token can encourage people to join your platforms by logging in to use various services that might help to earn the values of your token. You can make them use the reward system to do various things that will make your platform more approachable, like sharing this on social media platforms to gain rewards (or) reward referral program.
2. Raising Capital
Begin a capital investment business is not so easy and trying to get into the office of venture capitalists or investors to try and pitch them is enough for most tech companies. You have to meet a lot of rules and if you are in their portfolio, they won’t see your vision and goal. It won’t provide returns to you that they want in the future such as community projects, may fund this and most of the projects will die at these hurdles.
Instead of selling your equity to traditional investors, you can raise your capital investments via ICO (or) IEO. Using this blockchain technology can fund your project. You have access to worldwide investors and you are no longer restricted to your location.
3. Utility Token
A utility digital token or cryptocurrency can be usually issued to raise the fund for the development of the cryptocurrency. But, then can also be used as the natural way to make trading inside the platforms and later can be used to buy services offered by the cryptocurrency issuers. It is one of the methods of raising a fund for the startups that asset holders can sell or redeem for the services they want. Utility tokens make it easier for you to create an interest in the project among the active users by holding your cryptocurrency in your wallets. Once the product went live, you can provide a maximum amount of percentage values to those users who are willing to use your product or services.
4. In-Game Currency
If you are creating a game, you may have many ways to earn loot, points, or any digital assets that can be used in your game. These items can be digitized on the blockchain and make them tradable to other users to increase the value of your token. They will buy and sell items with other players who are all in the game and also buy items from games shops to play games further. Cryptocurrencies allow real funds to use in the game and vice versa bringing more values directly into the game. Gamers also encourage their efforts and get rewards that can be used for their financial purposes.
5. Avoid Middlemen
Using blockchain technology can avoid the middlemen in many ways such as running your website on a blockchain domain. You will no longer have to provide the hosting fee for every year and also not be worried about your domain expiry date since you bought it. You can also store text on chains like IPFS instead of using cloud services. When it comes to development, you can remove the middlemen and act as an open-source that can be found for all blockchains and migrated to you at a low cost, instead of getting a code created by someone which fits your tech stack. Using this technology will give you access to a host from the open-source that can help you to build your products at an affordable price and superior quality.
Wrapping up:
The above-mentioned are the important reasons to build a crypto token for your business. Are you looking for the best token development company to create your own token for your business? You need a complete guide while creating a crypto token. So, it is essential to hire the best professionals who provide the best solutions for you. Nodalsoft Technologies is a leading blockchain and cryptocurrency development company that offers various crypto token development services on Ethereum token development (ERC20, ERC741, ERC777, ERC1400), TRON token development (TRC10, TRC20, TRC721), Binance Smart Chain (BEP20), NFT Token development. Our team of experts helps you to develop your own token on various blockchain networks such as Ethereum, TRON, EOS, Binance Smart Chain, Matic, Fantom, Ripple, and more. We have delivered more than 100+ projects for enterprises, startups, and SMBs.
Our Token Development Services:
Choosing the best token development company will provide the best token development services and provides answers on How much it costs to create a crypto token from scratch?. So this is the right time to consult with our technical team which will help you to decide on the best approach to the development process accurately and launch your own crypto token to yield a high return on investment (ROI).