ERC-20 Token Development Company: How to Find the Most Suitable One?

  • Landing protocols Curve, Aave, and Compound.
  • NFT marketplaces OpenSea and Rarible.
  • Blockchain games Decentraland and Axie Infinity.

Token — What Is That?

  • Binance Smart Chain (BSC) — BEP20
  • Tron — TRC20
  • Cardano (ADA)
  • Cosmos (ATOM)
  • Solana (SOL).

What Types of Tokens Are There?

There are several types of Ethereum tokens tailored to different purposes:

Security Tokens

Securities powered by blockchain. This crypto-asset type is distributed through Security Token Offering (STO) — a simplified analog of the Initial Public Offering or a tokenized IPO.

Utility Tokens

They are used for specific purposes, such as staking or farming, payments on a specific platform, and so on. Examples of Utility Tokens include Shiba Inu (SHIB), Uniswap (UNI), 1inch (1INCH), and Filecoin (FIL).

Non Fungible Tokens

Unlike other token types, are based on ERC721 or ERC1155 special Ethereum token standards. NFTs are unique in that they cannot be replaced by other assets or split into parts, such as USDT or UNI.

What Is the ERC20 Token?

ERC20 is a token standard developed by the Ethereum creators in order to create digital assets without deploying a new blockchain. ERC20 is the default standard among token development services. USDT Stablecoin — the token with the largest capitalization has been launched in accordance with the ERC20 token standard.

Features of ERC20 Token

Why are ERC20 tokens popular among ICO development services, not to mention ordinary users? First, due to high liquidity Ethereum is the most used developing smart contracts and blockchain-compatible DApps platform.

Extra Benefits of Ethereum Token Development

  • Network security and smart contracts reliability.
  • Availability of services for token migration.
  • Uniform standard for DApps and token development.
  • Stability of work, absence of problems, and interruptions. Solana network — one of the main Ethereum competitors — suffers from suspended transactions on a semi-regular basis.
  • Simplified token development, accompanied by numerous documentation, not to mention a large number of user manuals on the subject. Any user can smoothly make their own customized source code.
  • ERC20 token standards are accepted by virtually all exchanges and token development services, avoiding many issues related to product compatibility and lack of liquidity.

Why Do You Need Your Own Ethereum Token?

Some solutions, such as lending or AMM protocols, do not need to create their own blockchain in order to transfer tokens. Instead, their developers deploy an application (DApp) based on an Ethereum smart contract.

Ethereum Token Development

Blockchain technology offers a variety of solutions for developing flexible and productive highly-decentralized systems that have low operating costs. The Ethereum blockchain offers both a toolkit for making DApps, tokens, and smart contracts that users can use to solve various problems and the ecosystem for these applications to function in.

How to Make Your Own Ethereum Token?

ERC20 token development requires extensive understanding and knowledge of the Ethereum blockchain, especially if you want to add many features to your platform: creating liquidity, buying and selling coins, trading, additional token types, etc.

Creating by Yourself vs Ethereum Token Development Services

Let’s take a look at a few reasons to contact our Ethereum token development company to create and maintain projects:

  • You can make critical mistakes. If hackers discover vulnerabilities in the source code, you risk losing all your token users and your business being seriously affected. Even if you fix the problem, it will be very difficult to restore the reputation.
  • Partner support is needed to list your token on major cryptocurrency exchanges, and a leading token development company is a perfect choice.

How Much Does Ethereum Token Development Cost?

Launching your own project requires a significant initial investment, and the cost of ERC20 token development grows with the functionality, influenced by these factors:

  1. Design and testing of tokens.
  2. Platform creation or protocol (DApp) development.
  3. Token marketing and promotion in different channels.
  4. Token listing on exchange platforms.

How to Pick Ethereum Token Development Services?

You should first of all figure out how the ERC20 token development company will help you with your project and whether it will provide a service useful to users, raise funds to finance the token, ensure the growth of the user base, etc. The project will directly depend on the choice of the Ethereum token development company.

  • Custom blockchain and smart contracts development.
  • Digital wallet creation.
  • Tokens listings for IEOs.

The Main Stages of Ethereum Token Development

Let’s take a look at what stages the token development process consists of.

Whitepaper Development

This is the first point you should start with ERC20 tokens development. You need a plan to present to your users. The whitepaper answers the most important questions:

  • What functions do they have, and what problems do they solve?
  • How will your ERC20 token be useful, and why should you invest in it?
  • What will be the development of Ethereum tokens, and does your platform have a perspective?
  • Why is your token special? What makes it different from other solutions?

Token Creation

Then it comes to the actual ERC20 token development. Any user can create their own token based on the Ethereum blockchain network. The creation process itself is very simple — it boils down to providing the necessary information:

  • The symbol is a ticker or short name for the Ethereum token. For example, Tether uses USDT, while Uniswap uses UNI.
  • Total supply: the maximum number of tokens issued. You decide how many tokens are issued in total: you can issue 1 trillion, 1 million, 10,000, or even 1 token. Moreover, the distribution format is also different. For example, you can release 50% of the tokens for sale at once and distribute another 30% as stake rewards.
  • Decimal: number of decimal places. For most tokens, the number 16 is used. The same USDT can be divided up to 0.00000001 units.

Token Wallet Development

Local or online stores may be needed if your token offers unique options that most other assets do not have. Token development services will help you create a wallet app for your Ethereum tokens with the necessary features:

  • Individual wallet accounts.
  • Unique addresses generator
  • Support for multiple assets, crypto coins, Non-Fungible Tokens, etc.
  • Work with AMM protocols, DEX, and other cryptocurrency exchange platforms.
  • Hardware security: cold wallets support.
  • Ethereum calls.
  • Security features: Multisig, Passphrase, 2FA, Air-Gapped, and more.
  • Digital wallet creation.

Marketing and ICO Development

Initial Coin Offerings or token sales are needed to raise funds for project development. The growth of any development company is impossible without funding. Successful ICO and large amounts of investments attracted will greatly speed up the development of your project. If you do not manage to raise funds needed for continuous progress, the ERC20 token development may take a long time, and the hype around the project will gradually decline.

Supply

The checklist for creating a new token business:

  • Crypto token creation and smart contract development.
  • Token wallet development.
  • Promotion and PR.
  • Conducting ICO, IEO, or IDO.

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