Cryptocurrency Market Tokenomics

nesanens (31)in #cryptocurrencymarket • 4 years ago

Introduction

The token or digital asset of any blockchain project plays a crucial and significant role in the growth and success of such a project. Establishing a reliable network that can ensure the sustainability of any project within the crypto space and the involvement of the token in such an objective cannot be undermined. In ensuring mass adoption and participation in any blockchain, as well as earning the interest of potential investors, developing a viable and valued digital asset is important. An effective utility of tokens, especially in projects relating to the governance system, extends to interacting within the network and contributing to voting exercises, proposal submission, and other related things.

Accessing the information and understanding the details of tokenomics of any blockchain project gives the client a comprehensive knowledge of different information on the digital asset of the network. Within any cryptocurrency or blockchain-related project in the market, there is usually peculiar information about the token, and this is contained in the Tokenomics. Certain information we can identify in this section of projects includes the total number of tokens in circulation and how sharing or distribution of the tokens. It will contain specific purposes, which the management team or the founders intend to implement. Across the plethora of projects on the crypto market, each project often has different purposes for allocating its tokens. Howbeit, there are often few purposes consistent with all projects due to their importance. They may include marketing and partnership, Team, and Presale.

The name of the token of this project is the Cryptocurrency Market Token, denoted as CCM, which is ERC-20 compatible and is supported on such wallets. This blockchain-powered network is a decentralized finance platform, which necessitates the importance of garnering the support and interest of investors and traders during the presale period, and this makes the management team of the Cryptocurrency Market platform allocate the bulk of the total supply for this purpose. An important aspect of the tokenomics of any project is the listing of the token on popular and widely used exchanges. For this blockchain network, the management team has identified top-ranked exchanges where the token will be listed, immediately after the completion of the presales campaign. These exchanges include MorCrypto and Uniswap. The team envisages introducing other exchanges that will support trading of the CCM token, however, the announcement will occur and all community members will receive a notification when negotiation brokering is concluded successfully.

Let us give a detailed analysis of the distribution of Cryptocurrency Market (CCM) tokens for the various purposes allocated by the management team. The CCM project has 10,000,000 CCM tokens in circulation for the entire project, and it has two different investments, hard cap, and soft cap. The hard cap investment is about 2000 Ethereum (ETH) tokens, while that of the soft cap is 100 ETH. Similar to most crypto projects and companies in the cryptocurrency market, that allocate funds and tokens for specific purposes streamlined to help the growth of the project, the Cryptocurrency Market platform also has specialized areas where they are investing their tokens to support the adoption and sustainability of their project. While most crypto projects focus on unique purposes when distributing the use of their tokens, certain specifics are common to almost all blockchain networks, such as Presale, Marketing, and airdrop.

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Marketing:

This is one key area where every blockchain network and crypto project utilizes the funds and tokens of the platform. As a start-up company looking to gain good grounds in the industry and compete with existing ones, developing a strategic and objective marketing plan can be immensely impactful. Marketing helps businesses, especially emerging ones, create publicity, and gain the attention of potential investors and enthusiasts. The marketing plan can be either in printed media or in online sources. Discussing with stakeholders in the industry is also an approach to marketing a project. CCM management team is allocating about 19% of the total supply of tokens, which is about 1,900,000 CCM tokens for marketing purposes. With such allocation, the team is certain that they will have an expansive marketing outreach capable to announce the network to important key players in the crypto market, and develop a mass adoption and improve the sustainability of the project.

Development:

With the number of projects and companies in the cryptocurrency and blockchain industry, having a development plan is important for all projects, most especially the start-up ones. An allocation of funds (or tokens) for this purpose is, therefore, highly necessary. Business owners and project founders should strategize how they intend to scale up their business operations, which will bring about the needed development of the platform. These allocated tokens for development will enable the management team to improve the network based on the current trends in the industry, which will ensure that investors and stakeholders remain committed to the project. About 10%, estimated to be about 1,000,000 CCM tokens, of the entire tokens in supply is for the development of the Cryptocurrency Market Project.

Presale:

This crypto-company-based activity usually occurs during the initial coin offering (ICO). In a bid to attract investors and crypto enthusiasts to their platform, blockchain project owners often allocate some amount of their total tokens in circulation for presales. CCM team recognizes this as the appropriate time in the project’s roadmap to attract key players and stakeholders to join and participate in their network; hence, they allocate the highest percentage to presales. As a way to boost engagement and participation, the tokens sold during the presale program are at a discounted price. CCM allocates 70% of its entire tokens in circulation for the presale purpose, which is about 7,000,000 CCM tokens.

Airdrop:

Another activity that creates wide awareness of a crypto project is the airdrop campaign. Here, the project team requires members of the public who intend to join the project to perform certain actions such as signing up, sharing information about the project on their social media platforms, referring friends and colleagues, and others. After completing these actions, they will submit their wallet address, where they will receive some CCM tokens at the end of the airdrop campaign. Only 1%, about 100,000, of CCM tokens in circulation is available for the airdrop.

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