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What Is A Cryptocurrency Token

A Gentle Introduction To Digital Tokens

A Gentle Introduction To Digital Tokens

Digital tokens have come to the fore recently, firstly with excitement about cryptocurrencies such as bitcoin, then with digital tokens being used to represent different assets on a blockchain. What are they? How can you digitise a token? Why is it important? When I hear the word token I think of round plastic things like a casino chip, or something which I can use to exchange for a beer under a specific system or in a specific marketplace. We will explore the original usage of the phrase digital token, then take a look into the world of cryptocurrency tokens, differentiating between blockchain-native tokens like BTC on Bitcoin or ETH on Ethereum , and asset-backed tokens like IOUs on Ripple. When you enter an email address into a website to join a mailing list, youre often asked to check your email and click on a link. The link looks something like this: ?token=4bdebebc-135b-4748-b7ab-25b31a285df8 In this case, the token is this string of characters which was sent to you. Its a unique string of characters, which, when you click on it, tells the server that yep, the guy definitely got the email, so the email account is definitely his.. So, the website sent you a token, and you sent it back, proving you had control of that email address. However, token is now being used in an entirely different way to mean other things in cryptocurrency land. Lets explore. Cryptocurrency tokens dont exist as a string like we saw above (if they did, they would be easy to copy), but rather they exist conceptually as entries on a ledger (a blockchain). You own these tokens because you have a key that lets you create a new entry on the ledger, re-assigning the ownership to someone else. You dont store tokens on your computer, you store the keys that let you reassign the quantity. I prefer t Continue reading >>

What Is A Cryptocurrency Airdrop?

What Is A Cryptocurrency Airdrop?

A crypto airdrop is when a blockchain project distributes free tokens or coins to the crypto community. To be a recipient of an crypto airdrop often the only requirement is that you have coins from the relevant blockchain stored in your wallet. Examples of this format of airdrops are Byteball, Stellar lumens and OmiseGo. These airdrops required you to proof you were the owner of Bitcoins or Ethereums at a certain time ( snapshot) of the blockchain. The format of these crypto giveaways is usually like this: At a pre-announced time the project behind the event will take a snapshot of the blockchain, anyone holding Ethereum or Bitcoin at that point will receive a certain number of free e-tokens. This can also be done on other blockchains, but Ethereum and Bitcoin are the most used for this airdrop format. Other (often smaller) airdrops require social media posts or you need to contact a member of the team on the Bitcointalk forum. This form is gaining more popularity since September 2017. It's currently a hype to just fill in a google form with your email, telegram, twitter & wallet address to get free tokens. This format is often used for new crypto projects that are using airdrops as a marketing campaign. Another possible way to get free e-coins is a faucet. This means you get a small amount of free crypto for a longer period of time. Some wallets, crypto casino's or crypto promotion sites run this type of airdrop. You might wonder, why would anybody give away free cryptocurrency? I have wondered the same and my thoughts on this are the following; To offer coins for free the people are the product. With doing an airdrop the project creates awareness about their ICO or token. It brings people to the project that otherwise would not have owned or heard about it. It could Continue reading >>

What Is The Difference Between Cryptocurrencies And Tokens?

What Is The Difference Between Cryptocurrencies And Tokens?

What is the difference between cryptocurrencies and tokens? Lets look at the basics what is currency, according to Investopedia: Currency is a generally accepted form of money, including coins and paper notes , which is issued by a government and circulated within an economy. What is more, the currency must have value in the market. Basically cryptocurrency is not that different from tokens. Once tokens are issued by some enthusiastic developers group and someone bought it (or received for some job) and can trade them, it becomes cryptocurrency. However, tokens can be much more than cryptocurrency. They can be used for various cases in the smart contracts ecosystem which accepts that token. For example Basic Attention Tokens ( Home ) will be used as token to use its advertising service. This means, that BAT tokens value will potentially increase as all people will have to buy it to use the service. So to conclude, cryptocurrencies just help transfer value in accepted way (as physical money), as tokens can be used for various use cases in blockchain. Continue reading >>

When The Cryptocurrency Bubble Pops, These Tokens Are Built To Survive

When The Cryptocurrency Bubble Pops, These Tokens Are Built To Survive

When the cryptocurrency bubble pops, these tokens are built to survive An emerging species of crypto-token offers a glimpse at the future of decentralized services. Being in a cryptocurrency bubble is not entirely a bad thing. At least according to crypto’s true believers. The argument goes like this: Sure, lots of people lost money when the dot-com bubble burst, but the technological innovation and human capital that survived became the foundation of today’s internet economy. Something similar is bound to happen if and when the blockchain bubble goes pop. This piece appears in our new twice-weekly newsletter Chain Letter, which covers the world of blockchain and cryptocurrencies.  Sign up here  – it’s free! Even if we assume that’s correct, and that today’s blockchain developers are laying the foundation for another economic revolution,  it’s still too early to predict how the new system might look and feel. But we have had a few tantalizing glimpses, the clearest of which are “utility tokens.” From chaos, order: All crypto-tokens are built on a blockchain or other shared cryptographic ledger, but not all are created equal. Switzerland, a hotbed for initial coin offerings , accounted for this in a set of landmark regulatory guidelines that divide tokens into three categories. Bitcoin and other currencies primarily designed to be payment methods go in the first bucket, known as payment tokens. In the second are blockchain-based versions of traditional securities, like stocks and bonds—those are called asset tokens. Utility tokens are those “intended to provide digital access to an application or service.” A self-driving Uber has killed a pedestrian in Arizona The arcade analogy: It might be best to think of utility tokens as arcade tokens, in Continue reading >>

Coinmarketcap Faq

Coinmarketcap Faq

What is "Market Capitalization" and how is it calculated? Market Capitalization is one way to rank the relative size of a cryptocurrency. It's calculated by multiplying the Price by the Circulating Supply. How are the prices calculated for the various cryptocurrencies? Price is calculated by taking the volume weighted average of all prices reported at each market. Sources for the prices can be found on the markets section on each cryptocurrency page. For example, Bitcoin's markets. What is the difference between "Circulating Supply", "Total Supply", and "Max Supply"? Circulating Supply is the best approximation of the number of coins that are circulating in the market and in the general public's hands. Total Supply is the total amount of coins in existence right now (minus any coins that have been verifiably burned). Max Supply the best approximation of the maximum amount of coins that will ever exist in the lifetime of the cryptocurrency. Why is the Circulating Supply used in determining the market capitalization instead of Total Supply? We've found that Circulating Supply is a much better metric for determining the market capitalization. Coins that are locked, reserved, or not able to be sold on the public market are coins that can't affect the price and thus should not be allowed to affect the market capitalization as well. The method of using the Circulating Supply is analogous to the method of using public float for determining the market capitalization of companies in traditional investing. What is the difference between a "Coin" and a "Token" on the site? A Coin is a cryptocurrency that can operate independently. A Token is a cryptocurrency that depends on another cryptocurrency as a platform to operate. Check out the crypto tokens listings to view a list of tok Continue reading >>

Digital Tokens Are Being Used In Cryptocurrency Markets To Raise Millions In Minutes Quartz

Digital Tokens Are Being Used In Cryptocurrency Markets To Raise Millions In Minutes Quartz

About a dozen rain-soaked people were crammed between the revolving doors and security barriers in the lobby of New York Universitys Stern School of Business as torrents pelted down outside. All desperately wanted in to the hottest ticket in town, one that promised to make some of them overnight millionaires, if not billionaires. Among them was Dan Morehead, a former Wall Street titan turned bitcoin investor, and a dentist working on a blockchain startup who had flown in from Seoul. I dont really care that you overbooked, its not my problem! I dont care about a refund, one agitated man seeking entry barked at two T-shirt clad twentysomethings on the other side, one of them clutching a clipboard. You can be upset and raise your voice, but we cant change anything, one of the gatekeepers replied. We have three clients down there! another man interjected. The clipboard holder dutifully scribbled down names. When it was my turn, she said NYU wanted to clear out the huddled mass blocking the buildings entrance: The auditorium holds like 470 people. We have more than 500 people down there right now. NYU is calling security. Inside, a conference called Token Summit was in full swing. The event was the first to focus on a rapidly snowballing phenomenon called cryptocurrency token offeringsa new fundraising method that allows companies to raise millions of dollars in mere minutes. The cryptocurrency world has gone mad for token offerings. These launches, popularly known as ICOs or initial coin offerings, have already raised more than $150 million this year, according to research firm Smith + Crown . They are seen as a disruptive new mechanism that could displace traditional venture capitalists from the fund raising processa view thats been endorsed by a coterie of brand name VCs Continue reading >>

Differences Between Cryptocurrency Coins And Tokens

Differences Between Cryptocurrency Coins And Tokens

Basics you need to know By Aziz, Founder of Master the Crypto No responses This article explores the subtle differences between cryptocurrency coins and tokens, and why the term cryptocurrency is a misnomer. Cryptocurrencies can be extremely hard to wrap our heads around, especially since their underlying technology the Blockchain is shrouded in computing language and terminology that is technical in nature. This is a huge impediment to many who are interested in the crypto space. But do not worry! Well guide you in understanding key cryptocurrency concepts that is great for you to know. (See more: Guide to Common Crypto Terms ) Lets start with understanding the definition of cryptocurrencies. Cryptocurrencies are digital or virtual currencies that are encrypted (secured) using cryptography. Cryptography refers to the use of encryption techniques to secure and verify the transfer of transactions. Bitcoin represents the first decentralized cryptocurrency, which is powered by a public ledger that records and validates all transactions chronologically, called the Blockchain. (Read also: Upcoming Bitcoin Hardforks You Should Know: Bitcoin Gold & Segwit2X) Although many cryptocurrencies have existed prior to Bitcoin, its creation marks an important milestone in the realm of digital currencies, due to its distributed and decentralized nature. The creation of Bitcoin precipitated the expansion of a lush and more diverse ecosystem of other coins and tokens, that are often regarded as cryptocurrencies in general, even when most of them do not fall under the definition of a currency. (See also: 4 Reasons Why Now is the Best Time for You to Invest in Cryptocurrencies) Coins vs Tokens: Categorization of Cryptocurrencies It is important to note that all coins or tokens are regarded Continue reading >>

Initial Coin Offering (ico)

Initial Coin Offering (ico)

BREAKING DOWN 'Initial Coin Offering (ICO)' When a cryptocurrency startup firm wants to raise money through an Initial Coin Offering (ICO), it usually creates a plan on a whitepaper which states what the project is about, what need(s) the project will fulfill upon completion, how much money is needed to undertake the venture, how much of the virtual tokens the pioneers of the project will keep for themselves, what type of money is accepted, and how long the ICO campaign will run for. During the ICO campaign, enthusiasts and supporters of the firms initiative buy some of the distributed cryptocoins with fiat or virtual currency. These coins are referred to as tokens and are similar to shares of a company sold to investors in an Initial Public Offering (IPO) transaction. If the money raised does not meet the minimum funds required by the firm, the money is returned to the backers and the ICO is deemed to be unsuccessful. If the funds requirements are met within the specified timeframe, the money raised is used to either initiate the new scheme or to complete it. Early investors in the operation are usually motivated to buy the cryptocoins in the hope that the plan becomes successful after it launches which could translate to a higher cryptocoin value than what they purchased it for before the project was initiated. An example of a successful ICO project that was profitable to early investors is the smart contracts platform called Ethereum which has Ethers as its coin tokens. In 2014, the Ethereum project was announced and its ICO raised $18 million in Bitcoins or $0.40 per Ether. The project went live in 2015 and in 2016 had an ether value that went up as high as $14 with a market capitalization of over $1 billion. ICOs are similar to IPOs and crowdfunding . Like IPOs, a Continue reading >>

Gold-backed Cryptocurrency Directory

Gold-backed Cryptocurrency Directory

Gold-Backed Cryptocurrency a complete list In 2017 the price of Bitcoin reached parity with gold (by ounce) which grabbed the attention of gold investors around the world. With the current Bitcoin mania there has been a surge in interest with the concept of gold-backed cryptocurrencies. The idea of a gold digital currency has always had an appeal for those looking for an alternative payment system. Not long after the internet went mainstream E-Gold emerged as first digital currency backed entirely by gold in 1995. At its peak, millions of people around the world were using this service until it was shut down. Other attempts to make a digital gold currency were also made, but this was before the age of Bitcoin and Blockchain technology. Now with Blockchain established as a secure accounting method, and with Bitcoin becoming better known to the general public, a new era of gold-backed cryptocurrency is emerging. There is a proverbial (or is it a literal) gold rush happening now in the crypto world, and even countries are looking to issue their own gold-based cryptocurrency . The basic concept is certainly compelling. A token or coin is issued that represents a value of gold (for example 1 gram of gold equals 1 coin). The gram of gold is stored by the coin issuer, and can be traded with other coin holders. At a minimum the price of the coin will always equal the current gold rate. If the cryptocurrency becomes popular then the price of the coin can potentially increase in value, greater than the value of gold. If the cryptocurrency doesnt take off then the value remains as the value of the gram of gold. Its like a built in stop-loss. There of course many risks as well. While the blockchain accounts for the coins, accounting for physical stored gold is another matter. In t Continue reading >>

Thinking About Buying A Cryptocurrency Or Token? The Sec Has Some Advice - Marketwatch

Thinking About Buying A Cryptocurrency Or Token? The Sec Has Some Advice - Marketwatch

Trendy investments are especially ripe for fraudsters so be aware there is a real risk of fraud, says the SECs Schock A gold plated souvenir Bitcoin coin is arranged for a photograph on a smart phone displaying current value of a single bitcoin. Should you or shouldnt you buy the latest new cryptocurrency or token? I cant tell you how many people have come up to me and asked if they should invest in bitcoin. I recently conducted an investor education program at a retirement community and a woman said to me,My children keep telling me I need to hurry up and invest in bitcoin BTCUSD, +3.68% is it safe, have I already missed the boat? Seniors are not the only ones interested in bitcoin and other cryptocurrency-related investments. Millennials are also jumping on the bandwagon. While I cant give investment advice about bitcoin or any other cryptocurrency-related investment or product, I can provide advice on some things you should consider when deciding if an investment is right for you. Perhaps the most important thing to know is the cryptocurrency-related investment markets are very different than our regulated securities markets. For example, our securities laws provide important protections that you may not be getting when dealing in cryptocurrency-related investments. In many cases you may not know exactly who you are dealing with, where your money is going or what you are getting in return. For more detailed information, you can check out SEC Chairman Jay Claytons statement on cryptocurrencies and initial coin offerings (ICOs) and the Office of Investor Education and Advocacys investor bulletin on ICOs. These digital assets have been trending and receiving the attention of celebrities, often through endorsements. You may see them on social media, radio or TV promotin Continue reading >>

What We've Learned About Venezuela's Cryptocurrency

What We've Learned About Venezuela's Cryptocurrency

What We've Learned About Venezuela's Cryptocurrency Feb 20, 2018 at 21:30 UTC|UpdatedFeb 21, 2018 at 21:35 UTC The government of Venezuela published several guides Tuesday in support of the presale for its "petro" cryptocurrency. Announcing the oil-backed token as a form of legal tender that can be used to pay taxes, fees and other public needs, the Venezuelan government outlined its plans and expectations for the petro in a new website built for the cryptocurrency and launched today with the start of the token's pre-sale. The website is hosted by the country's Ministerio del Poder Popular para Educacion Universitaria Ciencia, Tecnologia (MPPEUCT). The petro's price will depend on the price of a barrel of Venezuelan oil from the previous day, according to the government's website. The presale, which was announced last month , launched Tuesday morning , as CoinDesk previously reported. Though more than 100 million petros are expected to be released ultimately, initially, only 82.4 million will be disbursed. It's the first digital currency to be issued by a federal government - yet the initiative itself has long attracted criticism, including from lawmakers both inside and outside of the country. It was first unveiled by Venezuelan President Nicolas Maduro in early December. The buyer's manual explains how users can set up digital wallets and purchase the token, and includes a warning to users about wallet security. For full details on how the token works, the government released the full white paper (a notable release given that the government, just over a month ago, was blasting the release of what it said were fake details). Though the third embedded document is titled "Guidelines for the internal control manual for the prevention of money laundering and financing of Continue reading >>

Can You Trust Crypto-token Crowdfunding?

Can You Trust Crypto-token Crowdfunding?

Ben Dickson is a software engineer and the founder of TechTalks . How blockchain can create the worlds biggestsupercomputer In 2016, blockchain startups raised some $200 million in Initial Coin Offerings (ICO), a new form of crowdfunding based on cryptocurrency tokens. This figure might not be much compared to the billions being poured in by VCs and Kickstarter-style crowdfunding, but it shows a huge year-over-year growth for blockchain crowdsales. Some of the startups have raked in millions of dollars with barely more than a promise and a website; several have failed to deliver on those promises. As is with blockchain itself, expert opinion is highly polarized on the cryptotoken crowdfunding hype, its reliability, its legality and its future. Heres what you need to know. In a nutshell, projects launch an ICO by issuing crypto-tokens on the blockchain (usually the Bitcoin or the Ethereum blockchain), giving early investors the chance to acquire tokens in exchange for cryptocurrency. ICOs are usually limited by time or a cap on the amount of funds raised. The value and number of tokens released can be static or calculated based on the amount of funds raised. Crypto-tokens have become an easy way for blockchain startups to fund their projects early in the development cycle, and for regular users and enthusiasts to invest in projects of potential value and have a say on how their future is shaped. The legal classification of ICOs and crypto-tokens remains murky and a point of contention. They borrow traits from both IPOs and traditional crowdfunding (e.g. Kickstarter, Indiegogo), while at the same time they bear enough difference to avoid fitting into any of those categories. They do not account as donations because they give cryptotoken purchasers a stake in the company Continue reading >>

What Is An Ethereum Token: The Ultimate Beginners Guide

What Is An Ethereum Token: The Ultimate Beginners Guide

What is An Ethereum Token: The Ultimate Beginners Guide Angel Investors, Startups & Blockchain developers... To a beginner, the entire concept of Ethereum and Ethereum token can get very confusing very fast. The idea that Ethereum not only has its own currency (Ether) but also has tokens on top of that which can act as currency themselves, can be a little mind-boggling. Before we even begin understanding what Ethereum tokens are all about, its important to grasp some basic concepts. The entire Ethereum network is a giant mass of nodes (computers) connected to one another. In fact, the entire network can be visualized as a single entity called the Ethereum Virtual Machine or EVM for short. All the transactions that have happened and will ever happen in this network are automatically updated and recorded in an open and distributed ledger. So what is the advantage of this? Before we explain that it is important to know what a smart contract is. Smart contracts are how things get done in the Ethereum ecosystem. When someone wants to get a particular task done in Ethereum they initiate a smart contract with one or more people. Smart contracts are a series of instructions, written using the programming language solidity , which work on the basis of the IFTTT logic aka the IF-THIS-THEN-THAT logic. Basically, if the first set of instructions are done then execute the next function and after that the next and keep on repeating until you reach the end of the contract. The best way to understand that is by imagining a vending machine. Each and every step that you take acts like a trigger for the next step to execute itself. It is kinda like the domino effect. So, lets examine the steps that you will take while interacting with the vending machine: Step 1: You give the vending mac Continue reading >>

How To Buy Bitcoin & Other Cryptocurrencies - Blockchain Tokens

How To Buy Bitcoin & Other Cryptocurrencies - Blockchain Tokens

Cryptocurrency is a type of digital asset used as a medium of exchange. The most famous one is Bitcoin. Other common terms for cryptocurrencies are digital tokens or digital assets. They are all stored in distributed ledgers called blockchains. Each blockchain has its own digital token. In the case of Bitcoin, it is the Bitcoin token. Other examples are Ethereum, Litecoin, Monero, Dash, Zcash, etc. Each digital coin has itsproperties and functions. This tutorial will focus on Bitcoin but could be used for any other cryptocurrency. Where to buy Bitcoin &other Cryptocurrencies There are different places where you can buy bitcoin and other cryptocurrencies (see figure). You can choose between: Bitcoin Voucher Cards (ie. Austrian Post office , House of Nakamoto , Azteco London ) To buy bitcoin you can use standard payment methods including bank transfers, credit cards, cash or Paypal. They all have their pros and cons. Bank transfers are slower compared to other methods; credit cards have high transaction fees, paypal has transaction limits, and cash does not get the best exchange rates. The following figure will give you the brief overview of the ways you could buy cryptocurrency and the possible payment methods. The best way to start buying coins is by opening a wallet with one of the large cryptocurrency exchange websites. To open an account each user needs to provide an official document ID. Atthe exchange, you can buy most of the popular coins and hold them in the same wallet. It is convenient and will save you a lot of time. The type of wallet is called anonline wallet, and people rely on the exchange to keep their funds safe. After you bought your first bitcoin or any other cryptocurrency, you should consider transferring the funds to a more secure wallet, which is Continue reading >>

Ico 101: Utility Tokens Vs. Security Tokens

Ico 101: Utility Tokens Vs. Security Tokens

ICO 101: Utility Tokens vs. Security Tokens Initial coin offerings (ICOs) have raised a combined $3.25 billion this year, creating the first visible ripple of what analysts believe could eventually become a multi-trillion dollar industry. Through the ICO fundraising model, startups can raise capital by issuing crypto tokens on a blockchain most commonly Ethereum and distributing them to token buyers in exchange for making a financial contribution to the project. These tokens, which can be transferred across the network and traded on cryptocurrency exchanges, can serve a multitude of different functions, from granting holders access to a service to entitling them to company dividends. Depending on their function, crypto tokens may be classified as utility tokens or security tokens. Utility tokens, also called user tokens or app coins, represent future access to a companys product or service. The defining characteristic of utility tokens is that they are not designed as investments; if properly structured, this feature exempts utility tokens them from federal laws governing securities. By creating utility tokens, a startup can sell digital coupons for the service it is developing, much as electronics retailers accept pre-orders for video games that might not be released for several months. Filecoin, for instance, raised $257 million by selling tokens that will provide users with access to its decentralized cloud storage platform. Because the term ICO is a derivative of initial public offering (ICO), utility token creators usually refer to these crowdsales as token generation events (TGEs) or token distribution events (TGEs) to avoid the appearance that they are engaging in a securities offering. If a crypto token derives its value from an external, tradable asset, it is Continue reading >>

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