Why crypto projects need to create their own token?

Jul 5, 2021
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           When it comes to the creation of tokens people usually wonder if it would make a real difference to have one or not. Why are people moving towards tokenization in modern times? Is it really a need?. Even though creating a token and developing an environment around it can take time, it certainly has many pros that can change the view for startups, most especially crypto projects, which ultimately can become the most powerful beneficiaries of token making because of the own nature of their projects. Let’s explore some of the reasons why crypto projects need to create their own tokens.

Token creation for Financial Freedom

          Yes, you probably guessed that financial freedom was one of the main reasons, but if you aren’t convinced yet, I’d like to bring into thought the fact that financial freedom is not easy to come by. Usually, consumers are content with entrusting their money to third parties without giving it a second thought. We have given up our security and our privacy because we haven’t really been given any other option. Governments and central banks have control over whether we use our money, how we use it, and when.

If you have a startup you may have experienced the limitations of fiat currencies. Receiving a certain sum of money and for it to be retained because of senseless bureaucracy seems to be the daily bread of those who work with international investors or clients worldwide. Not wanting to say that restrictions are not needed to ensure transparency, however, the frequency in which banks own your money instead of you is not usually considered a sense of financial independence or freedom.

There are many different reasons why cryptocurrencies matter and their potential shouldn’t be underestimated. As a major example, in countries suffering from a financial crisis, cryptocurrencies play a big role in people’s daily lives. Because they offer people the power of choosing how to use their money and trust that its stability does not depend on political situations going to waste. There is plenty of opposition from governments and law enforcement in regions under crisis, also numerous “raids” have occurred in regards to cryptocurrency mining. This is especially true in countries such as Venezuela, yet, this tendency has not ended, but continued to grow, as people realized how possible it is to regain freedom when the world around us does not work in our favor.

Crypto projects are no exception, as known, projects related to blockchain technology and crypto are usually not the first projects in line to be saved by angel investors. Also is not usual to come forward to get support from the mainstream due to the relative lack of knowledge in the general population. Tokenization is then a way in which crypto projects can earn financial freedom, by allowing themselves to overcome political instability, bank’s money restrictions, and worldwide investments. Also, token creation is, through projects like MintMe, a true tool for crowdfunding and smart investments.

Tokenization can generate brand awareness

          Another reason why creating a token is a must for any crypto project is that it can enhance its branding. Why? Because tokenization is not like using any other coin to identify what you do, it is a personal identifier wherever you go. Furthermore, it is the connection between you and your followers all over the world.

One of the most exciting things about blockchain and cryptocurrencies is the community feeling. A major benefit of decentralization is putting power back in the hands of users. Cryptocurrencies were designed as a decentralized alternative to traditional finance, making them more resilient, efficient, and democratic. This sense of intimate participation is possible because through tokenization you are also allowing others access to wealth, without a moderator, where they can exchange on a virtual market with the assurance of security through a blockchain, this acts as a strong tool in empowering investors to take wealth-building into their own hands.

We cannot forget also, that crypto projects vary widely and perhaps some ideas behind them may not be accepted as “good taste” in the light of the society, such as adults sites, modeling, hosts, or if they have certain political, ideological, and religious ideas. Tokenization brings the possibility to ensure the security of people’s personal information and privacy as well as allow them to make choices on their own and keeping individuality and freedom.

In our next article, we will discuss some tech reasons why tokenization can change the game for your crypto project.

Do you have any questions or opinions? Let us know!

Mary Schwartz