5 Characteristics Of Strategic Token Creation

Investing in cryptocurrency can seem challenging to inexperienced traders. However, there are many resources out there that can help you speculate and better understand your investment options in crypto. Not all cryptocurrencies are created equally; each new token is uniquely designed to benefit and incentivize its users and investors. Having a solid understanding of the tokenomics of a cryptocurrency can help you speculate about the sustainability and success of that coin in the long run. You can look at the whitepaper of a new cryptocurrency to learn the specific motivations and goals behind the token creation. Here are a few critical features for your next crypto investment.

Burn

Burning tokens is a deflationary practice that can seriously benefit the user. To burn crypto means to take a certain amount of that coin out of circulation to maintain the value of the rest of the coins. Some coins are made with regular burn rules built in. Burning FTX token, for example, happens weekly, where one-third of the fees collected through the FTX platform is used to repurchase and burn a significant portion of FTT to keep the price valuable and beneficial for traders and users of the token and platform.

Market Cap & Supply

Burn is a vital tool for regulating the price of a token. However, other factors can also impact the value of a coin at any given time. The overall amount of coins that can ever be minted is a critical number to know, as this will provide insight into the currency’s long-term success. Most cryptos have a limited number of coins that can be produced, which restricts the supply pool, impacting cost. A cryptocurrency’s market capitalization is its value at any moment, which is directly calculated by how many coins are in the marketplace at that moment.

Airdrops

Airdrops are another significant perk given to holders of specific tokens. Airdrops are random gifts of tokens to coin holders. For example, FTT holders will receive regular drops of the SRM token, which they can use through the new Serum DEX created by FTX. Airdrops are gifts of free money to encourage traders to invest in and hold a new token.

Discounts

Of course, one of the most beneficial perks of holding certain coins is the discounts they can give you. Because the new FTX token is the backbone of the FTX environment, FTT holders are automatically given fee discounts throughout the FTX platform. These discounts can be highly beneficial for those who participate in trading daily.

Exclusive Events

Another perk of investing in specific tokens is gaining access to a community of crypto enthusiasts and experts. Investors in the new FTX Token have the opportunity to become a crypto BFF. Crypto BFFs comprise a broad community of investors and traders holding FTT. As a crypto BFF, you will be invited to exclusive events and can even host your own crypto events to help educate and encourage others to participate in the trade. All crypto BFFs are encouraged to share their own opinions, insights, and ideas with the rest of the FTX community and leadership to help shape the future of the token. Access to a community like this can offer significant advantages when learning more and finding new investment opportunities.

Understanding the tokenomics behind each cryptocurrency can help you make better investment decisions. Not all cryptocurrencies are created the same way, and some will have exclusive benefits for their traders. Start exploring your investment options today and find the crypto most advantageous for your financial goals.

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