Why “Creator Coins” Should Boost Digital Entrepreneurship?

Why “Creator Coins” Should Boost Digital Entrepreneurship?

The word “entrepreneur” implies different meanings. One of them is being at the forefront, with new ideas and trends that will lead to success.

This definition explains why so many entrepreneurs are so excited about cryptocurrency and the world of possibilities behind it. While Bitcoin is now the trend of the moment, some of the emerging uses of Blockchain technology that fuel it are not.

Creator Coins are one such use; they combine cryptocurrencies with social media, and look set to transform the way we do business online.

What are Creator Coins and how can we use them?

Creator Coins are custom digital tokens that a startup can launch within its own community and they can be used in many different ways to benefit both the business and its customers.

Businesses can use them to reward customers for their support , such as when they refer the company to someone else, or when they buy your products more than once. Blockchain development company This can also include airdrops — coin distribution — for people who own a certain amount of the coin.

Companies could also establish an entry system for extra products or a premium service , much like airlines’ existing “air mile” point systems. Again, this would allow holders of coins with a certain amount to gain priority over those without coins.

The end use would be for customers to use the currency to reward the startup for a good service, or even use the currency to buy a product, service, or event ticket that the company offers. It is effectively a discount, as the customer has to find less fiat currency , but it also drives another important factor — growth in the value of the currency.

Whenever each of the above uses is put into action — whether it’s rewarding a customer or offering them coin-related discounts — the coin’s value goes up. Established cryptocurrencies such as Bitcoin and Ethereum are prime examples of this: usage is correlated with growth in value.

On the flip side, when people sell the currency in bulk, as seen with the crypto whales, the asset price plummets; thus the startup will have a responsibility to incentivize holders to hold the currency through ongoing incentives.

Then, if the value of the coin rises significantly, customers can even start making regular gains from it, and the start of the trade will naturally benefit from the increase in the value of their coin stock.

So how do we create Creator Coin?

It may even surprise you, but creating a new currency is very easy. Platforms like Rally, the first venture of its kind launched in July 2020, allow creators to launch coins linked to their digital communities. Each creation is based on the currency of $RLY , powered by Ethereum (ETH). Rally is a means of communication with the ETH blockchain. It provides ERC-20 tokens that can be converted to ETH, or fiat currencies like Euro or USD.

So let’s say you launch a million of your own coins in Rally. While this might seem like an intimidating sum involving sums of money the size of a big lottery jackpot , your virtual stash won’t be worth anything — but it won’t cost you a swim either.

The idea is to offer them to your digital community — whether customers or partners — in the form of aerial airdrops; or accept them as a form of payment, as mentioned above. This activity will help increase the price of the coin, resulting in higher value for you and your stakeholders.

What are the possible dangers that we should be aware of?

Platforms like Rally — and rival BitClout — are bound by regulations that prevent them from charging sky-high fees for coin creation. The focus is more on building communities than exploiting profits.

But this does not mean that Creator Coins are safe from speculators. As we have seen with cryptocurrencies in the past, “pump and dump” operations are designed to make a quick profit, resulting in the coin’s value dropping.

Emphasis will therefore be placed on the startup to encourage slow but steady growth rather than roller coaster ups and downs.

Holding the currency, or spending it to support the business, will be key to doing this, rather than selling it for short-term gains.

What are some famous examples of Creator Coins?

Creator Coins are already a reality for many startups. With Coin HighKey, the startup has built a solid rewards system for customers who earn Coins for positive contributions to the business. HighKey also regularly issues donations to increase interest.

Copyblogger, the leading content marketing expert , has also launched a coin called $MOVE. Blockchain Development services In exchange for holding the currency, community members receive discounts on Copyblogger products and access to the platform’s top-notch content. At the time of writing, the currency is listed with a value of $2.98 on Rally.

With more projects like this coming to fruition daily, the Creator coins movement is growing and 2022 could be the year that online entrepreneurship forms a dream alliance with cryptocurrencies.