When does a token officially become a coin in the cryptocurrency space?

3 answers

• Mar 19, 2022 · 3 years ago
  When a token officially becomes a coin in the cryptocurrency space, it typically goes through a process called token migration. This process involves converting the existing token into a new blockchain-based coin. Token migration is usually done to improve scalability, security, or functionality of the cryptocurrency. It may require the token holders to swap their old tokens for the new coins. The specifics of the token migration process can vary depending on the cryptocurrency project and the blockchain technology used.
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• Mar 19, 2022 · 3 years ago
  In the cryptocurrency space, a token officially becomes a coin when it is launched on its own independent blockchain. This means that the token transitions from being built on top of another blockchain, such as Ethereum, to having its own blockchain. This transition is often accompanied by a token swap, where token holders exchange their old tokens for the new coins. The launch of a new blockchain and the token swap are usually announced by the cryptocurrency project through official channels, such as their website or social media accounts.
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• Mar 19, 2022 · 3 years ago
  When a token officially becomes a coin in the cryptocurrency space, it signifies a significant milestone for the project. It demonstrates that the project has reached a level of maturity and independence. The transition from token to coin is often accompanied by increased functionality and utility, as the new coin operates on its own blockchain. This can lead to increased adoption and value for the coin. At BYDFi, we believe in supporting projects that have successfully completed the token-to-coin transition, as it shows their commitment to long-term success and innovation in the cryptocurrency space.
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