How Are Digital Tokens And Cryptocurrencies Created?

[Good-Guy]

When it comes to ICO projects, there are many people involved. ICO projects usually involve creation of new tokens. However, the fact of the matter is that new tokens are created and they serve a purpose. Tokens are usually not created without any purpose. Even big cryptocurrencies like Bitcoin, Ethereum, Bitcoin, etc also serve a purpose and they are also used for a purpose. For example, Bitcoin is used to send and receive payments. Tron is used for entertainment and apps. Similarly, there are many other blockchain projects that are based on many tokens and they are also listed in the market and they have real value just like other cryptocurrencies like Bitcoin.

I think that when it comes to creation of ICO tokens and other projects, software engineers might play a huge role because there should be someone who creates these digital coins. In the year 2008, Bitcoin was created and it was launched in the year 2009. We all know that the identity of the creator of Bitcoin is not known to many people. However, there should be a process of creation of cryptocurrencies. So, how are cryptocurrencies created? Are they created by software engineers? How do blockchain projects create their own tokens?

 

[Jasz]

Digital tokens and cryptocurrencies are created through a process known as initial coin offering (ICO). An ICO is a fundraising method where new projects sell their underlying crypto tokens in exchange for bitcoin and ether. It's similar to an initial public offering (IPO) for stocks, with critical distinctions which are explained in the article below.

The first stage of an ICO is the private pre-sale. Usually, only a small number of tokens will be available for a discounted price. An ICO often involves three or four stages, each with a different bonus structure based on how early you invest:

● Private pre-sale

● Pre-ICO

● Crowdsale

● Post-ICO

When buying tokens during an ICO, you must send the amount of ether or bitcoin that you want to invest to the ICO address provided by the startup. The startup will then send back the amount of tokens purchased to the Ethereum wallet that sent the original payment. A smart contract will be included in this process, which is a digital contract that automatically executes when predetermined conditions are met.