One of the most important questions that arise when we talk about token making is “How can I give value to my token?” Since people often wonder how to get someone to buy their token and perhaps earn on it. Let's talk about a few token’s characteristics first to understand how a token can grow in value and allow people to trade with it.
Even though there are differences in functionality for cryptocurrencies such as MINTME, BTC, or ETH and a token that you create, tokens have characteristics that are similar to cryptocurrencies: one of them is scarcity.
Scarcity is the secret behind how real economics works. You can imagine a town where it is difficult to mine gold: people have very small amounts of it and its value is high because it is difficult to get it and its amount in existence is little, one kilogram of rice could be compared to only one gold coin and those who have more gold are richer. What happens if suddenly everyone in town can have all the amount of gold they want and everyone can mine gold in their backyards? Well, a kilogram of rice would now cost a whole truck full of gold because now is not scarce anymore. In simple words, if any money, whether fiat or crypto, can be printed and copied at will and there are hundreds of them they wouldn’t be worth anything.
Economics cannot be thought of without scarcity. Many would say that even exchange and trade would not exist if human beings did not have to face some kind of scarcity. It is a basic condition that restricts the use that individuals and societies will make of their available resources, and also what determines the price of the goods and services we consume. This is the reality with tokes as well.
"Supply and demand" means putting the problem of scarcity into perspective: how much is something wanted or needed, and how much availability is there of that something wanted or needed? If tokens are demanded in the market and there is just a little or limited amount of it its price is high. Also, those who hold it are saving a value and they can use it to speculate in the market.
Of course, “scarcity” does not mean that there are none, but rather that there is little in comparison to the needs and desires that people have. As long as this acts in favor of your token the market will keep flowing and the trading of your token will continue. But then, how to increase the demand for your token?.
Increasing the token’s demand
To increase the demand you already have the scarcity in your favor, since there are only 10million units of your token in existence. You can also “burn” tokens if you want, by sending units to an address to which the private keys have been purposely lost. Also, you can set a token release period and set an amount of your token to be released slowly over 1 or even 50 years to avoid floating the market or increasing people’s trust in its true scarcity.
But these are characteristics that are related to the blockchain’s features and possibilities. Yet, there is an important part that does not depend on the technology alone, but on yourself and what you decide to do with the tokens, you create.
To make your token grow in value first you need to get people to want to have it. why? Because peoples demand it what will give your token the increasing price. When a token is backed up with a project idea or special features this can increase people’s interest in it, and will also allow it to become a subject of speculation in the market.
If you create a token you can allow your token holders to participate in exclusive activities or have access to special information, products and services. For example, if you are a video games developer you can offer your token for sale in exchange for people’s support, but they won’t only get your token in exchange but also they will get the chance to become the first players for your game before the official launch or get a VIP ticket to an exclusive interview session with the creators in your headquarters.
Those who became early supporters for your project will be holding then not only a token but the service that it can provide, a service that can be exchanged once again through trading. If you sold your 10 million tokens for 1 MINTME your early supporters could resell later on at 2 MINTME if people in the game industry find your game and the offer appealing. If your game becomes even more successful before the launch the value of your tokens in the market will also increase.
Furthermore, since you can put up for sale only a portion of it and set a release period for the other portion you could also sell your tokens in different stages of your project and offer different services to help stimulate people’s demand.
It is possible to make your token grow, you already have the underlying technology, the platform, the supply, and the possibilities. Now it’s your turn to make the best of it.