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“You Have To Create Your own Coin for It to Work,” Binance CEO Explains -Breaking

by Mike Robinson

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© Reuters. “You Have To Create Your own Coin for It to Work,” Binance CEO Explains
  • CZ answers FAQs by many crypto-inventors, including Binance CEO and founder.
  • In a long article, he explains the basics of making tokens.
  • CZ talked also about the many benefits associated with issuing a currency.

Binance founder and CEO, Changpeng Zhao simply known as CZ took out time to answer a frequently asked question (FAQ) by many crypto inventors — one coin to rule them all or millions of coins? CZ has chosen the former, with a long article outlining the basics of creating tokens and the advantages of issuing coins.

If they are credible, he says that issuing a coin may make the inventor some extra money. The inventor will only receive 0.1% of total value.

CZ also believes that issuing coins has the greatest benefit, creating a new ecosystem that allows users to interact with each other, retain them, and help develop the system. It cannot be done with company equity or fiat currency, and it can’t even be done using bitcoin. It means that it will require you to make your own currency in order for the coin to function.

Furthermore, he believes that people will continue to create new tokens for their project and there will be millions of tokens — some will succeed and some will fail. CZ recommends people not to create tokens until they are product-market-fit.

Tokens are a way for people to accelerate their product development. CZ advises that cryptocurrency inventors speak to Binance Labs first before finalizing plans. The Binance Labs team will review any token designs if they are attractive.

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