Why are there so many new altcoins released in 2021?

By dtforce | businessofcrypto | 15 May 2021

Bask in 2017, during the first altcoin bubble, the cryptocurrency community was already complaining about the sheer volume of new altcoins getting launched. 

The cryptocurrency space matured and evolved since 2017 "next big ICO" madness, but if anything, the volume of new coin launches only picked up in pace. 

One 2017 ICO investor commented: "Back in the days someone cooked up an altcoin generator. You would fill out a form with parameters (name, hashing algorithm, reward distribution in time) and pay a fee. The app would deliver was a genesis block and a core client app. In 2021, the industry developed to serve users who are way less technically minded than that."

It is true, judging from the amount of dog-themed tokens that do not even pretend to offer any added value. They are just honest meme tokens that people play with, completely mindlessly. 

So, how does the typical market entry look like, when you want to launch a meme token?

Just like in 2017, there are blockchain generators available as a service, or token launchers on Ethereum or Binance Smart Chain, likewise productised. That makes altcoin development available as a commodity now, by the way, and so it is not to be expected to slow down, for as long as it earns even a small profit.

The first step in your market entry is contacting an agency that offers a token launch product. There is a lot of full-stack blockchain agencies available usually in the notoriously cheaper parts of the world. They will either give you a quote for just launching the token, or offer a package with press distribution and basic social media setup.

There are marketing agencies focused specifically on token promo too, though, and their services are better. These agencies should have contacts in at least a few of the bigger crypto news outlets and also relationship with altcoin influencers on Twitter. Their services are not cheap but with the volume of new tokens launched these days, you need to stand out in some way. Heavy and expensive marketing usually does that, just like in any other industry. 

Once your basic promo channels are set up, then it's just about getting enough "regular" people to talk about your token. The goal is to get the coin in the awareness of your regular crypto trader, who wants to hear about it from other regular crypto traders. This will bring more people to trade and transact your coin, which is important especially if it's a DeFi token that relies on staking and liquidity crowdsourcing.

The best and cheapest way to get that crowd awareness is by releasing a marketing bounty on bitcointalk. Bitcointalk users who have old accounts and good reputation now get hired as bounty managers, it's a regular career. They will post the bounty, keep the thread alive so that it stays on the first page and answer community questions.

The bounty participants will tweet about your coin, post about it on their Steemit and Medium and shill it on Reddit in exchange for a small reward. 

Both the bounty manager and the participants get paid in the token. That means it effectively doesn't cost you extra money.

Now it is just to get the market going and if it's token like SHIBA-INU, maybe it will become a momentary sensation of the week as well.

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I am Diana, editor at thebusinessofcrypto.com


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