- Bitcoin vs. Altcoins – projected Marketcap
- I knew one insightful article about altcoins and would prefer to share here as well.
- The two types of Altcoins, an investor's view
- This article is four-years old but still has value today for altcoin degens.
Topic: Important to know: Difference Coin / Token and shady marketing practices - page 3. (Read 1153 times)
August 19, 2023, 10:46:55 PM
Perhaps you forgot your own topic about altcoins which, in my opinion, is surely helpful if you add it as should-read documents.
August 19, 2023, 06:28:56 PM
So, it’s important to get our facts right and look into a cryptocurrency if it’s a coin or a token and if it’s shit (which it is for most cases), call it Shitcoin or Shittoken, respectively.
We need to address all technical details properly.
Back then we only have duplicates of Bitcoin when there are new coins launching but since the inception of Ethereum and how they can host a token and ICO we are flooded with thousands of tokens until now we are so many new tokens coming with ICO, they abused and continue to abuse the system.
It's very important for new investors to first understand how Bitcoin works first before they dwell on other coins or tokens lest they get the impression that Bitcoin has a chain that can host other tokens when it's not.
Scammers find it easy to launch a campaign because its easy to create a token and the supply is already created and easily distributed on ICO, for a project being hosted in a chain to prove that they have a use case needs to have a solid roadmap and skilled developers to back up the project, to set them apart from a developer who just created a token to make money.
August 19, 2023, 05:41:10 PM
I think newbies are aware of the dangers of shitcoins and tokens, but the problem is that they tend to think that they are investing in "good project". It's better to assume that all altcoins and tokens are shitcoins because either the devs are scammers who create a coin/token to dump premine, or the coin/token will fail even if devs will honestly work on it, because blockchain doesn't really have any practical applications aside from currency, and we already have Bitcoin, so copying Bitcoin is pointless.
August 19, 2023, 03:15:24 PM
I am asking it again are you saying a Coin has the more potential then a token just because token does not have its own blockchain. Let's say a coin just came into the market with some new blockchain with some old mechanism like POS etc. And there is a token based on ETH blockchain and that Token platform is also getting more investments and trust over that Coin base platform. Does it still mean coin is better one instead of token?
We need to judge here from case to case. You are right that there can be a very bad Coin, for example, when weak, copied and outdated tech is implemented.
And there can be a very good token, where the project is unique, like UniSwap.
Sometimes, a project is better on an existing blockchain.
But on an average basis, a coin is much better than a token: add up all coins and all tokens and you'll get an average.
For example out of our top 10 cryptocurrencies, 7 cryptocurrencies are coins and 90%+ of crypto's market capitalisation is owned by coins.
Reasons for this can be:
- a coin has much more potential, like Bitcoin and Ethereum, are providing a whole digital currency (BTC) or independent platform (ETH), where tokens can be launched on
- a token is dependent on the plaform where it was launched on, it is limited to that platform and even can fail if the underlying platform fails
...
So, a coin has just more potential. If it's indeed better, needs to be judged from case to case by evaluating the tech of each coin.
While we can't judge for every single project, the average is very clearly in favor of coin, like we can see on CoinMarketCap.
August 19, 2023, 12:26:17 PM
False marketing is deceiving buyers
Did not come to think of it before but that's actually a good strategy to create bad image of a coin. Like making shit posts with token tags instead of #coin tags would create bad image of a coin but still who do not even know the difference of Coin and Token will not bother to think the about such things but those who know the different like me I knew the difference of Coin and Token before but I did not knew that the price of each or value of Coin is more than the Token. I am asking it again are you saying a Coin has the more potential then a token just because token does not have its own blockchain. Let's say a coin just came into the market with some new blockchain with some old mechanism like POS etc. And there is a token based on ETH blockchain and that Token platform is also getting more investments and trust over that Coin base platform. Does it still mean coin is better one instead of token?Same thoughts goes for the ICO and ITO and I am agreed with your point that projects which are introducing a token but using the term of ICO should be changed to ITO. But what difference it will make as tokens or coin price is not solely drive by the dependency on Blockchain.
August 19, 2023, 10:25:55 AM
Bitcoin is having a big advantage over Shitcoins: you know it’s a quality coin. Bitcoin doesn’t need excessive marketing (Bitcoin doesn’t even has a pre-mined stash to fund marketing from because Bitcoin doesn’t need it), Bitcoin is a quality coin itself.
Bitcoin doesn’t require research if it’s a coin or a token.
So, it’s very important to understand the difference between a coin and a token.
Due to new projects being launched on existing platforms, people started confusing terms how to call a cryptocurrency properly. In this topic we are going to debunk marketing buzzwords, which are used frequently to boost shit cryptocurrencies in a fraudulent way.
So far, various new projects keep "enriching" us from the Shitcoin industry but a very big problem arose around it, that different terms like "Coin" or "Token" caused confusion for everyone. For this purpose, it is very important to have a look at what a "Coin" and a "Token" really is and why it is important to research if a cryptocurrency is a coin or a token.
Coin
A coin is an original cryptocurrency based on an independent blockchain, whose blockchain is operated independently from other blockchains.
It does not matter whether this blockchain has been launched right away, copied or forked.
A coin serves as a medium for transaction fees on that original blockchain.
Examples of coins are: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, Cardano, Avalanche, Waves, Tezos and Dogecoin, etc.
Token
A token is based on a blockchain that already existed before the token was created. This token needs to follow all characteristics of this blockchain on which it is based on, you need some coins of the original platform to send tokens and all transactions of this token are also recorded in this existing blockchain.
The best-known platform for tokens is Ethereum [ETH]. Ethereum tokens can be created on it, whose transactions are recorded on the Ethereum blockchain. Fees are paid in Ethereum Coins.
Other examples of tokens include Waves tokens, which are based on Waves [WAVES]. Fees are paid in Waves Coins.
Binance tokens, which are based on Binance [BNB]. Fees are paid in Binance Coins.
So, if you want to move a token, you always need some original platform coins.
All other coins except Bitcoin are therefore called "Altcoins." This dates back at a time when new projects always had their own blockchain. The term "Altcoin" was therefore justified. Now, especially from the introduction of Ethereum, many projects have emerged, that will either stay for their entire existence on the Ethereum blockchain or later eventually switch to their own blockchain. Until then, they are on the Ethereum blockchain.
So, for the sake of accuracy, these products are called "Alttokens" instead of "Altcoins" as long as they are still a token. The popular term for such products would then be "Shittoken" instead of "Shitcoin" accordingly.
False marketing is deceiving buyers
While the term "Coin" evokes more valuable properties, "Token" sounds rather of low quality. As a result, many projects are advertising their product as a "Coin" while in reality, it is (still) a "Token". One should not be deceived by this because projects are frequently doing this to shill their useless crap project.
Projects doing this, should be avoided as it’s a big red flag.
In addition, there’s a new strategy from competing projects to trash competing projects. In a misguided effort, the competing coin is labelled as a token, but in reality, it’s a coin because it’s based on its own Blockchain. But competing projects are labelling it as a token to trash it and provide an effort to scare and discourage potential buyers from buying the competing coin.
It might even happen for competing projects to hire "agents" and place such agents in marketing departments of competitors, where in marketing material, these agents are wrongfully changing the term "Coin" into "Token" to make the competitor coin look bad by calling it "Token".
ICO, ITO, Shitcoin and Shittoken
The often-used term "token sale" is derived from a time, when many ICOs were using Ethereum and are as a result, assets have been tokens during its sale. For a better accuracy, it should be called ITO (Initial Token Offering) instead of ICO (Initial Coin Offering), since tokens are offered at this point in the majority of all cases. These only become coins eventually later.
While it can be argued, that an ICO, where tokens are offered will also mean, that these tokens will definitely become coins later and their state as a token is just temporarily and the sale just serves as an event to have the earliest recording of the cryptocurrency, it can’t be argued that a token is a coin, when there’s no unique Blockchain, where it’s based on.
So, it’s important to get our facts right and look into a cryptocurrency if it’s a coin or a token and if it’s shit (which it is for most cases), call it Shitcoin or Shittoken, respectively.
We need to address all technical details properly.
Translations:
Reserving new translations is currently not available.
Bitcoin doesn’t require research if it’s a coin or a token.
So, it’s very important to understand the difference between a coin and a token.
Due to new projects being launched on existing platforms, people started confusing terms how to call a cryptocurrency properly. In this topic we are going to debunk marketing buzzwords, which are used frequently to boost shit cryptocurrencies in a fraudulent way.
So far, various new projects keep "enriching" us from the Shitcoin industry but a very big problem arose around it, that different terms like "Coin" or "Token" caused confusion for everyone. For this purpose, it is very important to have a look at what a "Coin" and a "Token" really is and why it is important to research if a cryptocurrency is a coin or a token.
Coin
A coin is an original cryptocurrency based on an independent blockchain, whose blockchain is operated independently from other blockchains.
It does not matter whether this blockchain has been launched right away, copied or forked.
A coin serves as a medium for transaction fees on that original blockchain.
Examples of coins are: Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, Cardano, Avalanche, Waves, Tezos and Dogecoin, etc.
Token
A token is based on a blockchain that already existed before the token was created. This token needs to follow all characteristics of this blockchain on which it is based on, you need some coins of the original platform to send tokens and all transactions of this token are also recorded in this existing blockchain.
The best-known platform for tokens is Ethereum [ETH]. Ethereum tokens can be created on it, whose transactions are recorded on the Ethereum blockchain. Fees are paid in Ethereum Coins.
Other examples of tokens include Waves tokens, which are based on Waves [WAVES]. Fees are paid in Waves Coins.
Binance tokens, which are based on Binance [BNB]. Fees are paid in Binance Coins.
So, if you want to move a token, you always need some original platform coins.
All other coins except Bitcoin are therefore called "Altcoins." This dates back at a time when new projects always had their own blockchain. The term "Altcoin" was therefore justified. Now, especially from the introduction of Ethereum, many projects have emerged, that will either stay for their entire existence on the Ethereum blockchain or later eventually switch to their own blockchain. Until then, they are on the Ethereum blockchain.
So, for the sake of accuracy, these products are called "Alttokens" instead of "Altcoins" as long as they are still a token. The popular term for such products would then be "Shittoken" instead of "Shitcoin" accordingly.
False marketing is deceiving buyers
While the term "Coin" evokes more valuable properties, "Token" sounds rather of low quality. As a result, many projects are advertising their product as a "Coin" while in reality, it is (still) a "Token". One should not be deceived by this because projects are frequently doing this to shill their useless crap project.
Projects doing this, should be avoided as it’s a big red flag.
In addition, there’s a new strategy from competing projects to trash competing projects. In a misguided effort, the competing coin is labelled as a token, but in reality, it’s a coin because it’s based on its own Blockchain. But competing projects are labelling it as a token to trash it and provide an effort to scare and discourage potential buyers from buying the competing coin.
It might even happen for competing projects to hire "agents" and place such agents in marketing departments of competitors, where in marketing material, these agents are wrongfully changing the term "Coin" into "Token" to make the competitor coin look bad by calling it "Token".
ICO, ITO, Shitcoin and Shittoken
The often-used term "token sale" is derived from a time, when many ICOs were using Ethereum and are as a result, assets have been tokens during its sale. For a better accuracy, it should be called ITO (Initial Token Offering) instead of ICO (Initial Coin Offering), since tokens are offered at this point in the majority of all cases. These only become coins eventually later.
While it can be argued, that an ICO, where tokens are offered will also mean, that these tokens will definitely become coins later and their state as a token is just temporarily and the sale just serves as an event to have the earliest recording of the cryptocurrency, it can’t be argued that a token is a coin, when there’s no unique Blockchain, where it’s based on.
So, it’s important to get our facts right and look into a cryptocurrency if it’s a coin or a token and if it’s shit (which it is for most cases), call it Shitcoin or Shittoken, respectively.
We need to address all technical details properly.
Translations:
| Language | translated by | Title |
| ___________________________ | _____________________ | _______________________________________________________________________ |
| Bengali | Z_MBFM | বিভিন্ন কয়েন, টোকেন ও মার্কেটিং পার্থক্য |
| Pilipinas | TravelMug | Mahalagang malaman: Pagkakaiba ng Coin / Token at malilim na gawi sa marketing |
| Nigeria (Naija) | Chilwell | Things wey dey Important to know: Difference Coin / Token and shady marketing |
| Pakistan (Urdu) | Theme Pen | reserved |
Reserving new translations is currently not available.
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