According to crypto market data aggregator CoinMarketCap, there are more than 10,000 different digital assets actively trading in the crypto market. CoinGecko, another aggregator, lists nearly 15,000 tokens, including native cryptocurrencies, utility tokens, governance tokens, meme coins, etc. These numbers indicate wide acceptance of cryptocurrencies, encouraging developers to create more digital assets that solve many problems. Today, the industry regularly features new ICO or presale crypto launches, with some deployed on existing blockchains while others operate on their own networks built from scratch.

About Cryptocurrencies

A cryptocurrency is a virtual currency secured with cryptography and built on a blockchain. Many cryptocurrencies use decentralized networks with publicly accessible distributed ledgers. Depending on the developers’ intention, these assets perform different functions, including use as a peer-to-peer cash system, fractional ownership of real-world assets (RWAs), and governance on decentralized platforms.

The following are the two main cryptocurrency categories:

1. Coins: A coin is a digital asset native to its own blockchain. Examples include Bitcoin (BTC) native to the Bitcoin blockchain, and Ether (ETH) native to the Ethereum blockchain. In many cases, coins are designed to function as currency, operating as a medium of exchange or a store of value.
2. Tokens: A token is a digital asset that is not native to its own blockchain. Tokens are usually built on existing blockchains and may have a wide range of functions. Although they may serve as currency, tokens can also facilitate smart contract operations or simply represent units of value. Examples include ERC-20 tokens built on the Ethereum blockchain. A major subset of the token category is the non-fungible token (NFT), which represents unique assets and exists on other blockchains. Tokens may also be created with specific utility on a platform or a limited range of platforms, such as a crypto gambling token designed for online casinos.

Launching a New Cryptocurrency

There are several stages to launching a new cryptocurrency. All developers must check a few boxes and properly brainstorm to successfully design, develop, and launch a cryptocurrency that has any chance of success in an increasingly competitive sector. The following are a few guideline points to consider:

1. Planning: This stage requires developers to conceptualize the cryptocurrency and make several key decisions. For instance, creators must identify the purpose of the asset and figure out what problem it solves. Deciding this should help to establish potential use cases and fine-tune them to highlight unique features. Following this, it is advisable to conduct extensive market research for two main purposes. Firstly, developers must understand the target audience and tweak the asset to cater to the prospective community. Market research also helps to study competitors to determine their blind spots and fill up these ignored spaces.
2. Development: This phase requires careful decisions on whether or not the asset will need a new blockchain built from scratch or deployed on an existing network. Creators must also figure out the asset’s core architecture, including decisions about smart contracts and network security. If the blockchain is built from scratch, it is important to determine the most appropriate consensus mechanism. The most common options are Proof of Stake (PoS) and Proof of Work (PoW).

The development phase also requires decisions on token development and the appropriate token standard, such as ERC20 or ERC721 – depending on whether the asset is a coin or a token, fungible or non-fungible. The team must then design and test smart contracts, confirm operations, and create an interface and a wallet for easy user interaction. Creators should also hire a technical writer to produce a whitepaper or technical manual that extensively details the projects, mission, use cases, tokenomics, and roadmap.

3. Funding: Most cryptocurrency projects require extensive financing to offer the intended utility and compete favorably with other projects in the market. Funding helps with further development, fixes that may require going back to the drawing board, marketing, and public relations.

There are several different methods commonly used for fundraising in the crypto sector. These include crypto presales, initial coin offerings (ICOs), initial exchange offerings (IEOs), and initial coin offerings (ICOs). Sometimes, crypto projects may seek funds directly from venture capital firms or private sale participants via strategic partnerships.

4. Legal and Regulatory Structure and Compliance: Developers must design tokens with legal structures that comply with the intended jurisdiction of operation. It is crucial to identify specific regions where the company or project will operate and pay attention to specific laws, especially securities regulations. The asset’s operation and network should also easily comply with know-your-customer (KYC) and anti-money laundering (AML) policies. The best way to ensure compliance is to hire legal experts to perform advisory functions on the design and launch of the asset. Experienced crypto lawyers can guide developers early in the technical stage and help avoid potential problems that cryptocurrency projects commonly face.
5. Marketing: This stage requires creating a brand identity and putting plenty of effort into community building via channels like press releases and content marketing. It is necessary to build an early community of prospective users and supporters by holding virtual and physical events to win new users over. These events help to keep up with community communication while addressing any potential concerns. In addition, the team may establish partnerships with other businesses and projects as part of their marketing campaign and run advertisements targeted at the intended audience. 
6. Launch: With everything ready, a testnet launch is required before a main launch. Initial deployment on a testnet is necessary to properly test the asset’s operations and identify issues. The testnet deployment also helps to fix bugs and other problems identified before the mainnet launch. From the public launch, tokens should be distributed equitably and fairly to all expected recipients, including the team and investors. The team may also airdrop tokens to select members of the general public. 

Furthermore, developers should work on listing the token on trusted centralized and decentralized exchanges for expanded access to customers. After the public launch, the creators must continue to improve the project and update the network based on user feedback.