“You Have To Create Your own Coin for It to Work,” Binance CEO Explains
CoinEdition
Published Dec 24, 2021 07:32AM ET
Updated Dec 24, 2021 08:00AM ET
“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.
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Written By: CoinEdition
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