I was just wondering on how do investors and creators make money in creating new currency. As all we know there's a lot of different cryptocurrencies that are out in the market nowadays. Others already succeed but there are also some who did not.
How about you? Whats your point?
There are mainly two types of currencies running in the crypto market currently. One is the traditional currency like bitcoin or ETH which follows mining algorithms like Scrypt, SHA, S-11 etc. These kind of coins can be obtained through mining only and then can be traded in exchanges. The creators of such coins try to provide a store of value to the crypto community. Usually the creator retains a certain percentage of total coins with him as pre-mined and let the open market decide its price. This is how a creator earns money from a traditional coin.
Second type of coin is tokens which can be built using ETH or Waves platform etc. There are more but these two are the most popular. These tokens are usually a method of raising funds for business. It can be compared with shares. When a company raise funds from the public, they award the investors in tokens which is essentially share of that company. So if the company does well, their tokens become more valuable or sometimes, it doesn't get any value and fails in the market. These tokens are also listed in various exchanges and their value depends on the company performance and open market decisions of the investors.
These two are the most basic method of making money for the coin/token creators. Obviously not all tokens/coins become successful. Their success depends on various factors like vision, availability and professionalism. But the basic understanding is what I have mentioned. Hope this helps!