Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Breaking News

Slowdown Signs Mount as Jobless Claims Hit 10-Week High, Philly Fed Index Plunges

“You Have To Create Your own Coin for It to Work,” Binance CEO Explains

CryptocurrencyDec 24, 2021 08:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. “You Have To Create Your own Coin for It to Work,” Binance CEO Explains

  • Binance founder and CEO, CZ answers FAQ by many crypto inventors.
  • He replies in a lengthy article explaining the rudiments of creating tokens.
  • CZ also talked about the benefits of issuing a coin.

Binance founder and CEO, Changpeng Zhao simply known as CZ took out time to answer a frequently asked question (FAQ) by many crypto inventors — one coin to rule them all or millions of coins? CZ chose the latter, supported by a lengthy article explaining the rudiments of creating tokens, and the benefits of issuing a coin.

He says issuing a new coin can make an inventor some money from the initial sale (ICO, IEO, IDO) if they have credibility. However, the inventor can only get probably less than 0.1% of the total value.

Moreover, CZ affirms that the real benefit of issuing a coin is that it creates a whole new ecosystem, from user interactions to user retention, and development of the ecosystem. He warns that it cannot be done using company equity (securities) or fiat currencies, or even using bitcoin. This implies that you have to create your own coin for it to work.

Furthermore, he believes that people will continue to create new tokens for their project and there will be millions of tokens — some will succeed and some will fail. CZ advises that people should not create a token until they have product-market-fit.

This means tokens should be an acceleration mechanism after they have built a product that people want. CZ also advises that crypto inventors should talk to Binance Labs before finalizing their plans and if the project is attractive, the Binance Labs team can review the token design.

Continue reading on CoinQuora

“You Have To Create Your own Coin for It to Work,” Binance CEO Explains
 

Related Articles

India Tax Breaks Crypto’s Back
India Tax Breaks Crypto’s Back By CoinQuora - May 19, 2022

The current tax on cryptocurrency transactions on Indian exchanges is 18%. A receiver will be obligated to pay GST on a reverse charge basis. A 1% TDS for transactions above $129...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email