Steemit Crypto Academy Season 3 Week 8 | Understanding Tokens by @offia66.
Greetings crypto enthusiast.
We are here again with another mind blowing topic "understanding tokens" and thanks to professor @reminiscence01 for breaking down all about token to us.
Task.
1)What do you understand by Token and give an example of at least 5 tokens and identify the blockchain it is built on. ( give at least 3 different Blockchains)
In a layman's understanding I would say a token is something tangible. While Crypto wise I would say a token simply refers to a vendible asset that is based on an already existing Blockchain, this token can be used for investment and to make purchase.
Since building your own Blockchain is time consuming and getting the codes to get a blockchain up and running is not a day's job, it gave rise to the token terminology we have today, where one is allowed to build a token on an already existing Blockchain.
Tokens are intensified by initial coin offering (ICO)
As a blockchain is hack proof so is a token as it was built on an already existing Blockchain.
- Examples of token and the Blockchain it was built on includes:
| Token | Blockchain |
|---|---|
| Basic Attention Token (BAT) | Ethereum Blockchain. |
| Safeprotocol | Binance smart chain |
| Zilliqa | Ethereum |
| Phoneum (pht) | Tron |
| Baby Doge coin | Binance smart chain |
| Safemoon | Binance smart chain |
features of token
- it is Decentralized.
- it has no independent blockchain
2) What is the difference between a token and a coin?
the difference between a coin and a token has always been misunderstood by many including me but thanks to this class.
Coin Token A Coin is built on an independent blockchain A token is built on another blockchain( they don't have a blockchain of their own) Digital coins can be used for payments tokens are suitable for multiple needs coins are difficult to create since it requires an independent blockchain Tokens are much easier to create as no independent blockchain is needed coins are distributed through mining tokens are distributed through ICOs (initial coin offering)
3)Explain the different categories token listed below and explain its features.
- Utility tokens:
Utility tokens are combined or unified in the code on the blockchain that is already in existence and is used as a gateway to the services of that code. They are unlike security tokens as they are not made for direct investment, but can be used as service fee within their Network. For example a power supply company can choose to give out an utility token which will serve as a means of payment for services rendered.
Security tokens.
Security token is a virtual token which is mostly associated with traditional token. This security token gives voting right both in making decisions and gives users access to shares from company gain.Equity tokens
This type of token comes into play when showing proof of ownership. The equity token transactions are recorded on the Blockchain it was built on.
- Non-fungible token (NFT)
This type of token refers to the constituents of the data saved on a Blockchain. This type of token is based on programming which is used in place of photos.
4)Make your own research and write extensively on any token you listed in question one. (Must include features of the token, the aim of the project, Use cases).
With the instructions given by the professor
I would like us to scrutinize the safemoon token.
Safemoon protocol is a Decentralized finance (Defi) token. It was built on the binance smart chain Blockchain(BEP 20), safemoon token was created on 10th of March 2021. There is always a 10% fee for every sale of the safemoon token in which half of the fee is redistributed to owners of safemoon and the other half used as a liquidity pool with safemoon and binance coin (BNB)
Who Are the Founders of SafeMoon?
The safemoon is been run by a team of 6. The CEO, John Karony, CTO, Thomas Smith and Community Manager, Trevor Church, founded and worked together at an indie game studio called TANO, an acronym for Technically A New Operation.
Source
few characteristics of safemoon.
- Manual burn.
- There's a 10% fee for every sale of the safemoon token.
- You can't purchase Safemoon with Fiat money instead a swap is advised.
- it is listed on approximately 10 exchange platforms like: Hotbit, Bitmart, Gate.io e.t.c
SAFEMOON STATISTICS FROM COINMARKET.
How many SafeMoon Are There in Circulation?
The SafeMoon white paper describes that a total supply of 1,000,000,000,000,000, with 223,000,000,000,000 burned dev tokens and a fair launch supply of 777,000,000,000,000.
- up here we can see safemoon market.
| Safemoon | analysis |
|---|---|
| Price | $0.000002037 |
| Price Change24h | $0.0000001726 |
| 24h Low | $0.00000184 |
| 24h High | $0.00000226 |
| Trading Volume24h | $19,339,288.51 |
| Volume/Market Cap | 0.01628 |
| Market Dominance | 0.06% |
| Market Rank | #211 |
| Market Cap | $1,187,782,302.78 |
| Fully Diluted Market Cap | $2,028,537,202.69 |
| Total supply | 1,000,000,000,000,000 |
- Up here we have analysis of safemoon as at the specific time of making the post.
Features of safemoon.
- static rewards
- liquidity pool acquisition
- burn strategy.
Aim of the project.
1. Safemoon aims at offering solution that simplifies the Defi process.
2. safemoon is also aimed at generating a reasonable APY for investors with an automatic liquidity generation.
Conclusion
CC:
@reminiscence01
Hello @offia66, I’m glad you participated in the 8th week of the Beginner’s class at the Steemit Crypto Academy. Your grades in this task are as follows:
Observations:
The markdown used in the conclusion section is wrong.
Recommendation / Feedback:
Thank you for submitting your homework task
Thanks Prof for reviewing my assignment.