Why do startups prefer utility tokens?

william schofield

A utility token is a type of crypto token that allows users to access services or products on the blockchain network. In simple words, utility tokens are developed from scratch and not backed by any physical or digital asset. Currently, utility tokens are the most popular and valuable in the crypto space. Many budding entrepreneurs have raised funds through ICO by developing utility tokens on the most popular blockchain platforms like Ethereum, BNB chain, and TRON.
These three blockchain platforms have utility tokens with popular token standards like ERC20 for Ethereum, TRC20 for TRON, and BEP20 for the BNB chain. Before creating your own utility token, it is worth considering certain factors.

Factors for Developing Utility Tokens

1. Right blockchain selection
2. Deciding the token standard
3. Defining the token's name and symbol
4. Number of tokens to be created
5. Features to be integrated
6. Ability to transfer tokens across wallets

Utility tokens are majorly used by startups for fundraising needs. Any startup that needs funds for their business can raise funding easily with the help of crowd token sales. You can create an ICO platform with the help of an ICO dashboard script offered by a prominent ICO development company. Also, you can take part in the IEO to list your token on exchange. So creating utility tokens for your business needs is a smart move.

If you are a startup looking to create a utility token in a hassle-free manner, then you should reach out to a professional utility token development company in the blockchain industry. They will have a team of experts who can analyze your requirements and create feature-rich utility tokens.

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