What are the foolproof indicators that determine when a token becomes a coin?

3 answers

• Dec 17, 2021 · 3 years ago
  One foolproof indicator that determines when a token becomes a coin is its successful launch on a major cryptocurrency exchange. When a token is listed on a reputable exchange, it gains more visibility and liquidity, which are essential characteristics of a coin. Additionally, the token should have a stable and active trading volume, indicating that it has a strong market demand. Another important indicator is the token's ability to maintain a consistent price level over a certain period of time. This stability shows that the token has established itself as a reliable and valuable asset in the cryptocurrency market.
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• Dec 17, 2021 · 3 years ago
  Determining when a token becomes a coin can be subjective and depends on various factors. One indicator to consider is the token's market capitalization. If a token's market cap reaches a certain threshold, it may be considered a coin. Another indicator is the token's community and ecosystem. If the token has a large and active community, with developers building applications and services around it, it shows that the token has evolved beyond a mere concept and has become a functional coin. Additionally, regulatory compliance and legal recognition can also play a role in determining when a token becomes a coin.
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• Dec 17, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can say that one of the indicators that determine when a token becomes a coin is its successful completion of a token swap or migration. This process involves converting the token from one blockchain to another, usually to launch its own mainnet. This transition signifies that the token has achieved a certain level of maturity and independence, making it a coin. At BYDFi, we closely monitor such token swaps and migrations to identify potential coins for listing on our exchange. It's an exciting time for the cryptocurrency market!
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