HOW TO CREATE CRYPTO TOKEN
Updated: Aug 31, 2022
This article is a guide on creating crypto tokens using a step-by-step process. But before we do that, let's start with the basics and differentiate between a Coin and a Token Primer.
Coin Vs. Token Primer
Users generally assume coins and tokens to be the same. However, they are not. A crypto coin is usually the main currency on a blockchain. The crypto coin acts as money to fund all the transactions in the blockchain. In addition to coins, blockchain can also have tokens. Anyone can issue these tokens by lending, exchanging, sending, or performing other actions. Tokens help increase the utility of the blockchain. One can usually buy various tokens built on a blockchain using its native currency. An excellent example of this is the Ethereum blockchain, where Ethereum is the primary coin, and others are tokens like BAT (Basic Attention Token).
Tokens help transfer value to the blockchain. BAT, for instance, is a crypto token that helps people around the web earn it through the Brave browser and then spend it by exchanging it for fiat money or other cryptocurrencies(like Ethereum/Solana/Binance). Now that you understand tokens more, let's talk about the different types of tokens.
Types Of Crypto Tokens
There are 3 types of tokens, from payment to security to utility. Here is a summary of these:
Use Cases Of Crypto Tokens
The possibility and utility of crypto tokens are immense. Here are some of the common uses of crypto tokens:
● Raise Capital
● Drive Adoption Of Your DAPP
● Support a Cause
● Build a blockchain
How To Create a Crypto Token
STEP 1: Define Token Properties
The first and arguably the most critical step is to define the token's properties which include steps like:
● total token supply
● token's name, symbol, and number of decimals
● auxiliary functions to check balances on addresses, enable/verify transactions
STEP 2: Develop a Smart Contract
Now you need a smart contract to govern the token, a piece of code that governs the rules of operation of the token on the selected blockchain. So you have to code the software and create a smart contract, mainly with the most popular blockchain, Ethereum. Smart contracts power DeFi and other decentralized apps, allowing users to interact via transactions. It's a reasonably complicated process; however, going into the depths is beyond the scope of this article.
STEP 3: Run QA On a Test Chain
Debugging a smart contract is a tough job; hence it is necessary to run multiple tests on a test blockchain like Rinkeby or Ropsten. You can also use tools like SafeMath to prevent your code from making calculation mistakes. Trust me; you really wanna avoid "mapping address uint256" errors for sure; using this tool can help avoid this.
STEP 4: Deploy It On A Blockchain
The last and the most simple step is applying the smart contract. Depending on a tool your developers are working with, you'll need to send a transaction with compiled contract code. Note that there should be no receiver specified. Then, it's just a matter of a few clicks to deploy the blockchain.
Enterprise Legion Management
As indicated above, launching a crypto token is a tedious process. It involves essentials like developers, marketers, and blockchain-known people to develop the token. Otherwise, the token might lead to vulnerabilities that could hamper the whole project and create a false image in the industry.
Hiring developers to develop a medium-level dApp can cost money and time. A mid-level app can cost around $160,000, while an MVPs start around $40,000. However, the token creation objective can be achieved by leasing the work to an experienced entity that deals with this task daily. As you can see, it can be an expensive business, and this is where Enterprise Legion Management (ELP) comes in. ELP has developed a system that allows business owners in virtually all industries to "tokenize" their business and get their tokens publicly traded to raise money. It can be done using a simple 6-step process as shown below.
They also handle the services like developing the NFT section for your platform, creating a staking mechanism for the token, and most of all, marketing for the token. You can learn much more about them in a detailed article we wrote here.
Socials of the Project.