Bitcoin Forum

Why do almost 90% of the platforms introduced through this forum have to create their own coins and tokens immediately?
What I've learned about the founders of giant platforms like Paypal, Alibaba, Google, Twitter, Facebook, etc. is that they don't. They just make a platform that really hopes it will be used by people around the world without creating tokens to attract investors early in the journey (maybe they did but it was privately so that in the end we only heard the story). So that when their platform becomes a well-known brand, the money comes naturally through big investors, sponsors, and partners from other well-known figures/brands.

In addition (funnier), platforms with social and community bases that have no purpose or solution to the financial case must force themselves to stay in the mainstream by tokenizing their services which in the end the token creation itself becomes useless.

Why don't the current projects almost all follow in the footsteps of existing famous brands?

Major reason is $$$ Another reason is that it's easier to create a new token, a website, a whitepaper, and hire people to spread hype about the potential of this project. The market is also less regulated that's why they are so brazen in taking gullible people's money.

Facebook's Libra (now known as Diem) would have been fully launched by now if not for SEC and other regulator's intervention.

If cryptocurrencies and smart contracts were around 50 years ago, who knows if these large companies that we know today would have done the same thing?

All the companies you made mention are powerful organizations that don't see any needs in creating their own tokens or coins, for what purpose? It's why we need to be careful with new projects, it's because money is in crypto that's why we keep seeing new projects, almost all new projects are here to take advantage of investors

Interesting. Cause that's the nature of cryptocurrency and blockchain it's getting profit through their token and coin, set aside the working platform. I can't figure but only few have good platform and recently launched their tokens. But majority usually having tokens first and to follow their use case platform which is often the case here.

With the exemption of those projects like uni whom platform has been really used. Some have tendency to be scam one.

You are right that any new altcoin project has to be starting their own token. This has been the trend that was started with the ICO hype.

It is a shady thing because the concept was that by buying that token you are spending your money and supporting the project which makes it seem like an equity. But again the token holders have got no legal rights on the project. Which makes it a shady security to hold and shows how many loopholes the concept has. Advisors have got bigger hands in the ownership of the project and therefore when the project funds plummet, they will do a hostile takeover and sell the project to another shady group to be never heard of again. This has been the aftermath of many altcoin projects.

Mainstream companies are often publicly traded on exchanges. They are regulated by SEC and similar bodies. We cannot compare the altcoin markets with them.

There are now over 1,600+ cryptocurrencies in circulation and while most of us know the basics when it comes to big projects like Bitcoin (BTC) and Ethereum (ETH), attempting to make an informed investment decision about some of the smaller ones can too often seem like a confusing prospect. Their values in digital marketing fluctuate. But in the last few years, they have raised their position very much. Before starting a project you should know about it

interesting discussion, I think it has become a trend since the ICO booming a few years ago.
It's like we have a product but there is no capital to develop it and then do a token sale to raise funds, with only the name, whitepaper and strategy in the future they can get funds to develop the product, but most of that is scam.
these can't be compared to real projects like the ones you mentioned above. this is the crypto industry

As you have said, those companies has a lot of public and private fundings initially, and it could be millionaire venture capital that really bet big on those projects early because it is unique. As compare to crypto space, very different, they need capital and then scam people, LOL.

And there are things here on what we call the prime movers of crypto like Bitcoin and Ethereum. Then that's where the comparison with Paypal or Google or Twitter or Facebook. They are first in the crypto space and obviously get the most support of crypto enthusiast.

in my mind, new projects are now thinking of immediate benefits. even those who are successful with their tokens do not stay in the market for long. because there is not much interest and developments that cannot compete in the market.

because they just want to get money from investors. they make tokens and sell them under the pretext of doing development. After tokensales, the tokens are listed on the market and in the end they disappear. This cycle is always repeated with new projects, only a small number of projects actually do what their whitepaper says.

If I were you I would just ride along, many projects will fail no matter how certain their products look or how promising their team are, only very limited projects will survive, its been like this since day one and there is no real way to tell the difference than to just take risks after doing some research, I'm in for the money making part and I don't trust any new project

For quick bucks apparently, even if the devs know that their project will face an inevitable doom once dump happened after getting listed into an exchange.
Those "giant" platforms you mentioned are already standalone by themselves, they don't need some shitcoins for quick bucks.

"Why don't the current projects almost all follow in the footsteps of existing famous brands?"
They'll be buried because people would probably choose famous/reputated/high-rated brands than theirs.

The purpose is since Bitcoin is already exist around 12 years and have high value, they want to create their own coin to beat Bitcoin (but it will not happen) and expand the adoption more about the companies brand.

We're in digital and technology era, so they want to follow the hype to create digital coin (e.g. Facebook create Libra and China create Digital Yuan)

Wrong

There's already 6229 cryptocurrencies can be traded right now so far, you can see it here https://www.coingecko.com/en

This is how they look upon the other's success that's why there are a bunch of them here and they do not really have the things they are talking about especially those who have just emerged recently. You need to know that every single project out there has its own marketing strategy to create some hype. Mostly they don't work because people already knew this kind of propaganda and sometimes it works, they can gather investors all around the world but still manage to run away with those people's money. All of these things stand in one rule which is "make your own research before investing" don't just follow the hype because most of them are just for showoff to fool the others.

This is a crypto world, and tokens as the currency of their respective platforms therefore they are introducing it.

When the platform you mentioned was launched, blockchain technology didn't exist yet. And they also don't just hope that the platform can just be successful, without any effort. You don't know how hard each of these platforms is.

Don't you see that Facebook is currently launching Libra (currently rebranded to DIEM) don't you think that FB is imitating social media platforms that already have their own token? lol


It is not an easy thing.

This Question is a bit funny because this giant platform you mentioned above didn't start out as a crypto backed platform and even aside that maybe they have no intention to tokenize their business, during the early days of PayPal, Alibaba, Google and the likes i don't think there was anything like blockchain so the platform was created to provide service to those who are interested which totally different now that blockchain is available and upcoming project will rather use it since it provide better service and accuracy in getting the job done, if blockchain was available then who knows maybe one among them would have opted for it.

That is not just with social and community bases. Almost every project, regardless of what they have or have not,,, do the same, thinking that they can just magically create utility for everyone from nothing. And funnier to think that users will also suddenly magically want to use the token for utility they never needed before.

The money will be their reason to create their own coin or token. As the @OP mention, the giant company will follow the step to create their own token and coin. I think those giant companies make a secret movement without the public know, and maybe those company still learning the new method to attract investors to join with them. Besides that, I think they are waiting for the right time to launch their project to the public, especially right now, the bitcoin, altcoin, and DeFi, still show a good trend. The giant company does not want to make a wrong move this time, and waiting for a while will be the best for them.

But they don't just hope, do they? It takes a looot of investments to make a certain brand recognizable, attract an audience and convince them to use it, and without that - no investors will give their money to your project. So, funny enough, but if your platform isn't really unique - in order to draw investors' attention you already have to be something, and not everyone has sufficient funds for that. And years ago it was way easier than now! Nowadays, due to enormous competition, you'll have to invest even more.

And the other way to attract funding - is being unique, so that your company won't have many analogs in the market, and one of the easiest ways to do it - is to associate your project with something new - altcoin, convince investors that it's something extraordinary, explain why it is better than other existing alts and voilà - your project has just become interesting. It's another matter that nowadays there's such a wide range of altcoins, that even this method isn't that effective, but it doesn't require many funds, so..worth a try.

Have you ever worked on a technology project? Can you make it better? My point of view is very different from yours, how do you rate this market today? What projects are developing in this direction? Answer these questions, as the projects here are made not entirely pointless :).

This is the structure of Cryptocurrency, the technology is very young and they want to build a project or platform in the Cryptocurrency that will serve the community, those websites that you mentioned have different structured you cannot compare this to projects that are on Cryptocurrency, they are set up long before the existence of Cryptocurrency.

Aside from the technology differences. The reason why most project introduced token on there initial phase was to gather funds give tokens in exchange for investors money. Company like alibaba, google and soon has VC that fund there company on early stage, those VC get shares when the company become established and list on stock market.

In cryptocurrency since we are on early stage. Crypto projects is forbidden to provide shares since they will to Security Token and it needs to become regulated, the problem was there is no firm regulation on Security token that’s most of the project are choosing Utility token just to continue and get fund without having any issue to SEC.

Nearly 90% of the project deviates from the content of WP in the end (based on my observations since 2018) and only serves to fill exchanges as one of the options of thousands of altcoins that are constantly increasing, but that doesn't frustrate people too much.

It seems that both sides (between founders and investors) have begun to eliminate the belief in long-term potential. The important thing is they managed to double the money briefly then goodbye and good luck to the next holder.

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Do you think that in the future every crypto startup company will have its own currency?


Yes, because Facebook is slowly becoming a business space and I think Facebook is doing the right thing. Instead of launching Libra, Zuckerberg first introduced and gave millions of users the opportunity to use new business features on Facebook such as the marketplace, monetization, and advertising until they really felt the benefits. When people depend on Facebook for their business, imagine if Facebook only enforces Libra.

yes. If we look at social media platforms such as Facebook, Twitter and others, it does not really have verry good concept. however this platform has a purpose and is very easy to use. maybe this is one of the success factors of this platform, which automatically provides income for the platform owners because there are lots of advertisements in it

Money is the main reason. Unlike social media platforms like Facebook, Twitter because from the start their main goal was just to get more users on their platform which would have an impact on revenue. But what is different is that we can see that crypto project developers are those who hope to get a lot of support from investors in the form of money which will later be used to develop projects for the better and the token sold have the right function.

But did you forget that the world of crypto is a world where scammers earn enough money only with the lure of a better future. Investors became bankrupt and lost a lot of money because their investment failed. Most of the developers run away and a lot of user money and pretty much the token become useless.

Investors are putting money on a project that they know has the potential to grow and make their investment-worthy in the long run, Projects releasing their token is something that the investors have something to hold on to when their project is running. Small projects who survive are the one that is doing their plan consistently. Crowdsale is important to those small projects for them to be able to support the financial needs. Projects also use their coin for their promotion at the early stage of the project development.

The reason many projects creates their tokens immediately is because of the money, however where a lot of projects creates their tokens just to make themselves rich, only few projects creates their tokens in order to access funds which will help them continue developing their platform. If we should go back to Bitcoin, we can see that, first an idea was created which was backed up with a coin, and because that idea is a revolutionary idea, the coin grew in value till this day, but this case about Bitcoin can't be said of many projects today. I can't even remember the last time I came across a project whose team have already started building their platform with their funds to a certain level before seeking for more funding through listing on exchanges or having a Pre-sale, nowadays many just write a whitepaper, create their tokens and start asking for funds.
Lastly, creating a token immediately isn't actually the problem, the problem is the intention of the team because even if they create it later, a team with a bad intention will still carry out their acts while a team with a good intention will try their best to make everything work.

How much money is needed for a newly created project to actively develop and attract the attention of investors? All the main directions were assigned by teams with experience, and they attract investment. People are afraid to trust projects because of their uselessness and fraud. It takes a lot of effort to prove to people their honesty and the need for crypto projects.  :o

tbh, most projects are created for the sole purpose of screwing naive investors. how many projects turned out to be scam and ended up with despair buyers? also, if you look at the scam accusations board in this forum alone, you will see tons of it, employing fake team members, ponzi scheme, plagiarism issues and so on and so forth.
scammers make this crypto space as their breeding ground as they can launch their projects anonymously and there will be gullible buyers thinking that they will get rich as well.
only few projects stand out with their real use case in the market. and you will see them in the top defi market or top alts.

It is obvious that they did IPO, sold a lot of their own shares and they made a huge return from it but also they have increased the amount of money company has as well. People think that if there is 100 shares of a company, and all 100 is owned by the owner, and there is IPO that 80% will be sold, you buy 80 shares of that company making people the new owners with 80%, and that money goes into the company to make it bigger? Most of the time it goes to the owner who sold his shares and now filthy rich.

Of course there are chances that people could give that money to the company so that his 20% with new billions would worth more than his old 100 that worth millions but that is optional and not forced. In tokenized world we are at least seeing what people do with their money and we know if it will go higher or lower in the sense that we know where our money goes instead of hoping about it.

New companies still have a chance to compete with big companies, right? If the public has already benefited from a new platform, why not plan to invest when the token sale is about to take place? Wouldn't that be less risky considering the progress of the ongoing project? Of course, prospects are easier to analyze.

Conversely, when investing in a new company that hasn't yet been launched, it is like venturing your luck with empty possibilities. Let alone looking at future prospects, we don't even know whether the platform is welcomed by the public or not.

It's easier to create tokens but those famous companies just don't see any reason to create one, paypal implement crypto instead of creating it's own token, they must have think very well about the whole thing, implementing is better than having their own tokens, it's same to other payment gateway like alipay and others

Token is a norm in Crypto space for now because the market demands it, you offer people what they want, just look at Uniswap and Sushi, I don't think if Uniswap had not issue their tokens that they would remain number 1 DEX exchange till now. For all these big companies, they also offer their own shares and some people equate this shares to tokens. The most important thing is if people like your platform and using it.

I agree with you and I mentioned something like this in a different thread earlier about the major interest of all crypto developers is Money or as in my Phrase then "Money Grabbing" whether they have any true intention to see that project through or not and I believe this Big organizations or company will not do that for the sole aim of making money but as an added service which sure can add to their financial portfolio.

most of the famous brands that you mentioned dont need to create a coin because they arent currency based but except maybe to paypal but paypal acts as a wallet and payment solution and dont also need to create its own coin and sell it .

while the crypto world is different ,  they are currency based and creating and selling a coin is thier main prospects and second would be their secondary purpose of their coins  . they can also do a private sale but they can do a public sale as well

Because the basis of the cryptocurrency industry today is the use of blockchain, and besides in the creation of financial instruments, I do not see any other application, but it is also necessary to arouse greed in people to warm it up, it is she who develops this market today.

There have been projects related to crypto but not using an altcoin. They may provide a service like a wallet or an exchange but no token as of now. These projects are less popular than the ones that have actually raised through an ICO/Token sale.

Point is that hype is what runs this market. You cannot attempt to make a name for your project unless you are launching your own token. Everyone wants to invest in tokens but few actually look at the legitimacy.

We can have an exchange or a project in general that raises capital by equity listed on a stock exchange and dealing with giving services about crypto. But will these be popularly known to the crypto public? I doubt that but I am also hopeful about the same.

I also think that a lot of newly introduced crypto projects would have a much faster and wider adaption if they wouldn't create a own token that users of their platform need to buy first and would instead use BTC or even FIAT as payments.
Projects choose to create their own token because so they can freely decide about the distribution of those tokens and if your project is successful and you as the team own 20% of the tokens you made it.

When you're talking about tokens, businesses can tokenize their stocks, marketing materials, reward points, governance, and use tokens as their own currency to retain customers. There are so many benefits that the question should be why aren't all companies creating their own tokens yet?

You just have to apply your own knowledge to get the real answer why a project exists, there are many use cases in crypto space that people don't even need but if developers don't give a try in the first place how will they know? Use cases like A.I always fail in crypto space for unknown reasons, it's even hard to see a real payment solution crypto project today, all those that claimed to be a payment solution end up dead or abandoned

Because some companies may not want it. Coming back as you said, it has to do with how functional those tokens would be if they were to create them. This will make the company healthier in public judgment.

Imo, if a company tokwnizes the platform/service at the beginning, it's like forcing people to make it valuable, while the company itself was just established and still in the early stages of development, meaning that it didn't yet have any value at that time.

I disagree that the crypto market develops greed. If you think so, then the whole business of the world was created by greedy people. Each of us needs money and everyone is looking for a way to earn it. Greedy people in most cases lose their money, and smart investors take profit from profitable investments.

Big companies don't need private tokens, they are doing so well already without any blockchain projects, all they can do is make crypto greater by implementing crypto payment on their websites, paypal already did the right thing and it's favoring paypal

Projects need to offer a coin for their project because in such way, they will earn profit from doing so. they won't release a project for no reason and that is ofcourse earning from doing so.In such way, they will also boost the platform of their project in a long run. They are simply making a community of users in their project.
Asking someone about something won't always cost you that much especially in this forum wherein interactions are anticipated among users. Scams do indeed exist because there are people who are continuously getting scammed by those people who are taking advantage of the ignorance of the new ones.

You have said nothing but the pure truth. We have dozens of them on the forum and the funny part, they always have the solution in paper but as soon these tokens get listed, the story changes.
That's when you hear problems like, we are still waiting for good exchange, the team is working to put things in place, the surprising part is that some even fold up or end up as exit scam.
The challenge with most of these projects is tokenization without real value to entire investors, sometimes you may come across a project that's having a product already generating revenue but they are quick tokenize their platform. The whole process is power by greediness and quick to make money otherwise Facebook and Twitter would have created a token and once they do, it will be a blast but the question is, what will be the used of this token. :-X

I think you mean the same. all you have to do is develop yourself if you don't want to be fooled by scammers all the time. advice from others is necessary, but the decision is not final without self-analysis as well. however, we have to upgrade ourselves to keep abreast of developments. scammers will always be smarter than us.

The answer is very simple, there's no other way to collect funds for their development!
You can't compare Google, Amazon, and others... they have stocks! And their investors invest in their stocks! In crypto the only way to gather funds for your project is to create coins/tokens, and to have ICO, or IEO... that depends on the project and its plans! It's how they attract potential investors, and of course, the project needs to have a nice idea, WP, and everything else that helps investors to get more familiar with the project!

very sensible. those new projects do IEO or ICO by making their own tokens to get development funding from the projects they are planning or even already running. although sometimes some are already running and running the products they usually use the development with funds from their own team as initial investors.

Okay, I understand a few things from what you explain. So the conclusion is simple:

A project needs to create a token at the start of its establishment for development costs. Some projects start from an idea of a founder. Lacking the necessary skills to make it happen and even making it big in a short time (let alone to follow a trend), a founder recruits a team voluntarily or hires those who of course they work for money (some ask for a down payment).

Investors' interest in crypto companies isn't seen by how big the company has grown, but how bright their ideas are in WP.

why can't it be as good as an already good project.
because the first goal of making tokens is not having a good future concept that can maintain a solid teamwork..

At the end of the day the main reason why you see almost all new platforms creating their own token is make money after selling it out, no two ways about it everyone wants to be rich that's why tokens are been sold to investors, and about these platforms you mentioned they were created and running even before bitcoin was created, we all know bitcoin is the first cryptocurrency so how can this platforms be tokenized when they existed before the creation of bitcoin it's not possible, but to be honest I really admire those platforms because they started from scratch without needing money from investors.

It's very simple. Because most of the projects you see here, are scams aimed to scamming the forum community.
I'm not saying that all are scams, but that i saw a pattern of projects who are listed here 1st,

On another note, in a pvt investment pool which i participate in, most of the 10x - 500x gains projects have never ever seen the light of day on this forum

Unfortunately scammers will always be rampant in any part of the world but to think that it only happens in crypto would be naive, it happens everywhere and in everything and there is no way that you could avoid that at all. Of course it is going to happen in crypto, it happens with dollars too, do you think nobody gets scammed in dollars? There was no scamming anyone 15 years ago? Scammers existed for centuries and it will always go on, they did it with gold coins centuries ago, they did it with banknotes, they do it with banks now and they keep doing it with crypto as well.

So, newbies need to be careful of course, because that is how you handle these things, without them you are not going to make a lot of profit and you are going to lose all your hard earned money if you are not careful, that is a very important part of business in any currency.

Bitcoin and a few other self-funded projects are an exception. Satoshi's footstep is the same as for the companies I mentioned in the OP, that he has never targeted the price of his company's assets since bitcoin was created. In fact, he left the company and never came back even though bitcoin has grown a million times more than he thought.

That's what I mean that investors are starting to believe and come by seeing the company's growth after a long time.

different from the context of buddy, here is the crypto market, while out there they only stand as a website, platform and also a market place. maybe if there is a new breakthrough where a new project can create a website that is used by many people, then coins are definitely not needed, whereas here, coins are very important because that is the main goal of the development team where when the project is finished, everything will be put together and launched into 1 in the form of coins and there began to target for investing and trading.

We are moving into the 4th industrial revolution. Some of the platforms you mentioned could have made money from user's information/advertising. Now platforms can earn money by issuing tokens or placing a platform transaction tax on tokens in it's ecosystem.

All the organizations you made notice are amazing associations that don't perceive any necessities in making their own tokens or coins, for what reason? It's the reason we should be cautious with new tasks, this is on the grounds that cash is in crypto that is the reason we continue to see new activities, practically all new ventures are here to exploit financial backers

Crypto is a money making tool for short term only, this is the way many viewed the whole idea, companies takes years to grow but in just two years you can become a millionaire if you build a token with a good use case even if you later plan to abandon the whole thing so my friend don't expect devs in crypto space to be damn serious, just do research and go for stronger projects only

only people who are good at choosing crypto investments are able to get profits in a short time the risk of investing in crypto is very high so don't just judge it in terms of ease make a profit need a more detailed determination if you don't want to experience losses and of course it's not easy

That is one reason and another important reason behind creating token and doing ICO is because these new projects don't have the capital to back and build their idea so they seek funds from public and in return we get tokens whose value is later determined by how well the project performs and how useful the product is.

Yeah, not all the coins and tokens know about this forum and don't have the time to create and maintain a thread. But that said, Ethereum is like the biggest altcoin of all time and they created a thread here which means this forum is still one of the best ways to let the bitcoin community know about your project.

Yes most of the projects that are being thrown in the market are mostly scam and their sole purpose is to create some hype around their project and juice out the maximum possible profit from naive and new investors.

Indeed and most of the tokens right now have a small life cycle while giants like PayPal and others are here to stay for years. One reason these projects don't stay for longer periods is because there is a specific reason these are made and once the purpose is fulfilled they gradually die of their own. New projects then come and this cycle goes on as it is going now.

The answer is obvious. We are on a cryptocurrency forum. Accordingly, all projects here offer their own token. On the other side of the coin, there is a huge number of startups that do not and did not have their own token.

I agree that it can give an impetus to small-cap developers and small-cap investors but these are only minor profits for either of them. The crypto sectors are saturated with lower number of possibilities that can be developed and unless something goundbreaking tech gets developed it will be like this with bitcoin being the top and ethereum close to it. We do see mainstream companies get wiped out with time and similarly shitcoins get wiped away from trading volume and get delisted.

Opportunity is there no doubt, but the number of actually working projects that have been able to develop an MVP and fund themselves enough to continue developing that is very small.

This argumemt was also made against exchange based tokens but we are now seeing that those tokens are performing really well especially the tokens from binance, huobi and okex are making great moves and not only providing utility and benefit to trders but their investors are making profit as well.

The reason :
1. Because this is not company like amazon, facrbook and microsoft this place is for decentralized project for decentralized organization.
2. Sometimes it can be used to make a pump and dump to make profit for the community untill the platform is being used by community.
3. The project is opem source project, so if you want to.help them you can put your money and in return if the project succceed your token or coin can be sold 10-1000x ( ethereum, cardano,...)

The tokenising craze destroyed the altcoin market and you still want more of it?

Tokens are not equity shares and that is where the biggest problem lies. Those who lack the knowledge of basic stock market trading and entered the crypto market with ICO craze got stuck in this never-ending cycle. The token owners may sell away their lots and delist the tokens from exchanges while investors will have nothing to sell on. That is why many developers leave the projects after a few months and development comes to a standstill with the lack of funding for the project to continue.

That is why new projects that started never became anything big.

I think there following the footsteps of what the btc made which is the first the creator released here in this forum and the creator itself made this. The concept and the origin of how the decentralized projects launched is come from this forum. They also need founds to release there project so they offer ICO, ITO and other concept to conceptualized there project and to raise funds so there project will have a prototypes. Unlike Paypal, Alibaba and other companies they don't need it. We are in form of decentralized and it's uniqueness makes cryptocurrency different to existing brands.