The Value Of Your Coin Will Determine The Success Of Your Site - How To Increase That Value
Like it or not a lot of uses on a cypto site will judge how well the site is doing based solely on the price of the coin. This may not be fair or right but that is how it works. You have seen it in steemit for years and the people who are running these new steem sites will get the same type of comments and questions: when moon? You can get to the point where you have the slickest site on the net but if the coin isn't climbing the coinmarketcap people will see not be happy.
So what can you do? There is the obvious things like make a great site and onboard as many users as you can. You will want to encourage quality and stop spam. But for this article I want to bring up two factors I think all new site owners should be thinking about especially now while your site is new.
REVENUE THAT DOES NOT COME FROM CRYPTO
Steemit has started to run ads after a couple of years and bring in revenue that is separate from its steem. This is very important. Now don't get me wrong I am a HUGE fan of crypto and think it is an amazing tool but we cannot depend entirely on it. Bringing in money that has nothing to do with your coin can help increase the value of your product. It doesn't have to ads (though they can help), you can also charge for premium services and extra tool for users as well. Make sure you are following the laws in your country for how to run your crypto business (we do not want another KIN lawsuit) but remember it is a business and there are more ways to make money besides crypto. And in the long run this will bring more money into the ecosystem.
KEEP INFLATION UNDER CONTROL
This is important to consider for new coins. I know it is tempting to want to give out coins in airdrops and bounties to bring attention to your site. But if you give out too many the coin will not have any worth. You want to keep your initial airdrops reasonable. Then there is the question of yearly inflation. Every coin should use a reward pool in my opinion. It is a great way to reward people for content. Steem gives out about 50k a day and I would not go higher than that. 10-50k is plenty to work with and any more would make it hard to keep value in the coin.
When it comes to your coin remember this rule:
If you treat your coin like it is not worth anything it will not be worth anything
With all the tribes around, a great opportunity to accumulate and build wealth.
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Great info.
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I'm interested about what will happen now after many STEEM interfaces have their own tokens. This might bring more people to STEEM but I wish there were more "outside crypto" money they'd bring.
These are all very good points and definitely we should consider what we can do to promote the price of our favorite community coins like buying the tokens, holding and staking, curating and upvoting yo encourage new users and the list goes on.
#geek #goodgaming #palnet #steemleo
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That is just it we are getting early experimentation and are seeing the results. Many are dumping thousands, tens of thousands, in some cases to some hundreds of thousands of tokens with trillion coin max limits, showing there could possibly be no end to the inflation in sight-and there could be a nasty trick played on the holders if the "wrong people" acquire too much of their coin for their liking. Before this is all said and done I think there will be much more of a more commonly used scarcity model of all things from the air drop, the miners, the inflation, everything. The more you have numbers pegged it seems you have some kind of model fairly solid and in place. You have to hand it though to these pioneers that busted through the wall it sure is a ballsy thing to do, my hats off to them that is for sure.
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The number of tokens given out per day isn't important, keeping supply low initially can allow for a greater starting value for something. It's much easier to keep value when people have concluded how much something is worth, than it is to build value up after that decision has already been made.
So new token creators should keep this in mind. Have airdrops if you want, but give out as few coins as you can. Keep inflation as low as you can. Set a high starting value for your token and give people a reason to want to buy more of it.