Tips for creating and launching your own token
One of the main things that come to mind for most people interested in cryptocurrencies is the price of the tokens or coins. The cryptocurrency market is known for its often volatile price fluctuations. One of the most interesting aspects of the industry is the tracking and speculation on the value of tokens.
Token prices are an integral part of the cryptocurrency world, but how a token begins to change in value is unclear to many people. The price formation process takes place behind the scenes.
This concept may not be familiar to many, but it is hard to imagine how the cryptocurrency industry would work without it. This article will briefly explain the idea and show how entrepreneurs can use this pricing discovery mechanism to create new tokens. In other words, all of the basic stuff you need to know about creating cryptocurrencies is here.
Creating tokens
Today, it's easier than ever to create cryptocurrencies. Whether an entrepreneur creates a token from scratch or uses a token generator, these new cryptocurrencies are created for a variety of functions.
These functions include commercial tokens, utility tokens, news tokens, etc. Initially, tokens need to have a stable market price. Eventually, cryptocurrencies are meant to be bought and sold, which is impossible without an initial value set in the price discovery.
So what exactly is price discovery?
Price discovery often refers to well-defined mechanisms that determine the value of a token. In general, the market in which traders buy and sell helps determine the token's value.
The problem is that today anyone can create a token and claim that it is worth $25,000. It is in fact the Cryptocurrency traders and buyers who evaluate what is being bought and sold, not the price on the screen.
How do you determine the right price? In short, prices are determined by buyers and sellers. The sales data is then used to create price charts. There are several ways to offer your token for sale, but first, you need to create one.
Tools for creating a cryptocurrency
A new token must, of course, exist to create a price. Fortunately, sites like CoreLedger or CoinTool have made it easy to create new tokens. These sites allow you to define the kind of token you want to create, including a launch means. Start-up companies need initial distribution and have some limited price discovery mechanisms.
Coin or token launch platforms are the first steps in most cryptocurrency projects. Still, they are not sufficient to determine the actual price because they do not perform dynamic pricing like cryptocurrency exchanges with real-time order books and price charts.
Cryptocurrency Exchanges
Cryptocurrency exchanges are best for price discovery of coins and tokens. Exchanges are platforms that most people are familiar with for buying and selling tokens. Some exchange software suites even allow you to create coins and manage token issuance.
However, for most cryptocurrency entrepreneurs, simply registering with a third-party exchange may be the most convenient way to improve the legitimacy and availability of a newly created token. However, some people are not very aware that there are two options.
Apply to list the token on an existing exchange.
Set up your own cryptocurrency exchange and list your token there.
Coin or token holders can also set up their own decentralized or centralized exchange and list their tokens on the second option. The second option is especially beneficial if you have a large community of followers.
There are tools or rather technology providers in the market that can provide you with the second option. Tools of this kind can set up cryptocurrency exchanges that can be designed and implemented in just a few hours and quickly start marketing your own tokens. Such tools can allow token creators to circumvent the often time-consuming process of listing tokens on a third-party exchange and enable tighter control and monitoring of token supply. As quick and efficient as such options may be, these should be kept as a last resort in the short term.
You should try and complete online applications on exchanges like KuCoin to list your token, and it should be done as thoroughly as you possibly can so that you can get much better results long-term speaking. There are many centralized exchanges where you can apply. Some might cost you a fee for listing and marketing, while others just accept for free.
Important notice: There are many scammers in the market pretending to be listing managers of top exchanges. Always ensure to independently verify their identities, whether through an exchange's support email or by checking their email domain.
Why is it necessary to make crypto price discovery?
Token price disclosure has proven necessary to bring order to the industry, but it also benefits cryptocurrency entrepreneurs. Cryptocurrency entrepreneurs who want their tokens listed on websites like CoinGecko and CoinMarkeCap must disclose the price for sure.
Influential websites require tokens to meet strict requirements before they can be listed, and one of those requirements is some form of independently verifiable price and trading volume source. If a token has no trading volume, the likelihood of it getting listed on these popular exchanges is slim.
CoinGecko does not trust anyone that a token is worth any stated amount until there is real-time exchange data and an API to access that data.
Summary
Price discovery is a complex process, as many platforms need to actively report the value of a token to determine the total price. However, in the short term, having control over the price discovery of a newly launched token might sound practical. That can be done by having at least some level of control over the pricing itself on an actual exchange on which the token is listed. This method allows you to control better the circulation of the token itself in the market, which could potentially lead to higher demand and, therefore, a higher price.
