Morpho (MORPHO) is an efficient Ethereum-based protocol revolutionizing decentralized lending with customizable peer-to-peer and pool-based solutions.

Liquidity pools have revolutionized decentralized lending and borrowing by offering a wide choice of product options and significant liquidity levels. For several years, protocols like 

 (COMP) have been lauded as true innovators that introduced a real game-changer: pool-based lending and borrowing. However, a closer look reveals that things aren’t as efficient and smooth as they may seem within the world of crypto lending. The problem is that lending pools on decentralized protocols often have mismatches between lenders and borrowers, with the former substantially outnumbering the latter. As a result, lenders earn only meager 

s, while borrowers pay exorbitant fees to access funds via these pools. Another critical problem is the lack of customizability in lending and borrowing products, with many protocols adopting a one-size-fits-all approach.

Morpho (MORPHO) is a decentralized protocol on 

 (ETH) that aims to improve the efficiency and flexibility of crypto lending and borrowing by offering a unique model that combines the elements of 

 (P2P) and pool-based matching of lenders and borrowers. To be precise, one of Morpho's essential products, Morpho Optimizers, specifically focuses on P2P matching, with pool-based lending and borrowing used as a fallback option. Morpho also offers users an excellent level of customization for creating new lending markets through its core protocol.

With its innovative lender-borrower matching mechanism and highly customizable and flexible markets, Morpho greatly improves capital allocation and transaction efficiency in the 

 (MORPHO) is an Ethereum-based decentralized lending protocol that offers a unique P2P order matching mechanism to improve the efficiency and affordability of 

 The platform also enables users to create efficient lending markets with highly customizable lending and borrowing parameters. Additionally, it offers a product, Morpho Vaults, for curated lending at varying risk levels.

, a France-based software development company founded in 2021 by Merlin Egalité and Paul Frambot. It's also supported by the nonprofit 

As its first major product, the project launched Morpho Optimizers on the Ethereum blockchain in 2022. Morpho Optimizers is designed as an add-on solution for lending pools on Aave and Compound to help match individual lenders and borrowers. The transacting parties can benefit from a more efficient lending process than with the default pool-based mode.

In January 2024, the project launched Morpho Blue, later rebranded to Morpho, a solution to help users create highly flexible lending markets with custom parameters and options. Morpho acts as the backbone of the Morpho ecosystem, and the project team has turned its focus to promoting and further developing this product. At the same time, Morpho Optimizers remains an integral part of the platform's core offering, albeit in a less prioritized state than Morpho.

The Morpho protocol consists of three main products — Morpho, Morpho Vaults (based on the underlying protocol) and the legacy Morpho Optimizers. Morpho allows users to create individual lending markets by specifying their preferred options for the following key attributes:

All these parameters are highly customizable, with minimal interference from the Morpho governance mechanism. Some parameters do have to conform to certain requirements; e.g., the IRM and LLTV must be from the list approved by the protocol's governance.

Morpho's high level of customizability is a significant departure from the typical model used on decentralized lending and borrowing platforms. On most other protocols, there are fixed parameters governing the lending and borrowing process; e.g., only certain collateral assets, lending assets or LLTV rates are allowed. In contrast, Morpho lets you customize all of these options, giving lending market creators an unmatched degree of freedom. The protocol offers the following key benefits to users, developers and market operators:

While Morpho is currently the platform's flagship product, the legacy Morpho Optimizers continues as a key offering in the platform's product line. Morpho Optimizers are add-on layers to the Aave and Compound lending pools. They can be used to facilitate a peer-to-peer match between lenders and borrowers. Since typical lending pools — including on platforms like Aave and Compound — are often heavily skewed with more lenders than borrowers, both parties end up paying excessive fees. Borrowers have to confront high costs due to the need to service the many lenders in the pool. In turn, lenders fight for the meager scraps left over from insufficient numbers of borrowers.

By using a P2P matching mechanism, Morpho Optimizers effectively takes the lender and borrower away from pool-based interaction and establishes a direct relationship between them. This allows users to borrow assets at cheaper rates, while also delivering better APYs for lenders. If either party withdraws from the direct lending relationship, both parties have the option to use the standard lending pools on Aave and Compound as a fallback.

The platform's third core product, Morpho Vaults (covered in more detail below) utilizes the underlying protocol and provides a way to lend through carefully curated market options at different risk profiles. This can suit lenders who are less proficient in using fully customized markets, but still prefer to take advantage of the lending opportunities offered by Morpho.

In order to create a custom lending market on Morpho, you need to have some technical proficiency and, preferably, knowledge of Solidity, the programming language that the protocol uses for its smart contracts. As noted earlier, developers can create a custom market by supplying five base parameters — a collateral asset, an asset offered for lending, an oracle, a preferred IRM and an LLTV. The first four of these normally require an Ethereum smart contract address to be specified. For the collateral and lending assets, these are the addresses for the tokens' contracts. The selected oracle is also usually established via a pointer to its smart contract address, although oracle-less hard-coded prices for the collateral and lent assets are acceptable. Morpho also maintains Ethereum addresses for each IRM whitelisted by the protocol's governance; developers can use these when choosing a preferred IRM.

The last value, LLTV, is a hard-coded figure that defines the threshold beyond which a loan becomes unhealthy due to its poor 

. Liquidators on Morpho are protocol actors who are incentivized to cover bad debts in return for collateral, similar to the method used on many other lending platforms. They’re allowed to liquidate up to 100% of the debt. In return, liquidators receive the debt's collateral, as well as an additional incentive for their work.

Since Morpho is an oracle-agnostic protocol without a built-in oracle, each market can have its own oracle that sources prices for the collateral and lending assets from external sources. Developers are completely free in that regard, and can even hard-code asset prices for the market if they don't wish to use a price oracle at all. Naturally, an oracle is preferred for maintaining the most up-to-date and dynamic pricing information.

The IRM used is the only base parameter with which developers are somewhat restricted in their choice, as only whitelisted IRMs are allowed for a market. As of mid-November 2024, there’s just one whitelisted IRM that market creators can specify — the 

. This model dynamically adjusts interest rates to maintain the proportion of borrowed funds to supplied funds at close to 90%.

Morpho Vaults are a tokenized vault product that offers curated lending opportunities with varying pre-programmed risk parameters. Each vault is associated with a single loan asset, and can allocate deposits across multiple Morpho markets, thereby leveraging the overall liquidity available on the Morpho protocol. Morpho Vaults suit lenders who prefer predictable risk management over the uncertainty of completely custom markets. Each lender can earn APY rates commensurate with their chosen 

There is no limit on the number of vaults you can open on Morpho. Thus, you might even allocate funds to different vaults with significantly different risk levels to diversify your exposure.

Morpho Vaults' curated nature eliminates the need for users to spend time researching and evaluating individual markets' risk levels and return opportunities, as risk exposure is actively managed by the vault.

Since the vaults are connected to the underlying protocol, and source liquidity from it, they’re dynamically rebalanced, which helps optimize yields. Thanks to their permissionless and immutable nature, the vaults are also completely transparent. Moreover, they’re noncustodial, granting users full control over their deposited assets, which can be withdrawn at any time.

A lender deposits an asset into a Morpho Vault and receives shares of the vault as confirmation of their investment. The vaults themselves are tokenized products utilizing Ethereum's 

 standard, designed to represent tokenized vaults for yield-bearing assets. Each vault may be owned by a 

 (DAO), an individual DeFi expert or some algorithm maintained by a DeFi platform. A vault can be owned by only one entity. The owner may specify additional roles/entities for managing the vault. These roles can include one curator, one guardian and multiple allocators.

The curator is a party who sets certain limits, rules and boundaries for the vault, such as specifying asset supply limitations and enabling/disabling specific markets. Curators are instrumental in maintaining appropriate risk levels for their vaults. Assets that lenders lock in a vault are supplied to the protocol's underlying markets, based on curators' whitelists. There can only be one curator for each vault.

The role of guardian is a key vault position. A guardian protects the integrity and security of the vault. Guardians can revoke any action by the vault owner (or other entities) if they consider it to be against the interests of vault lenders. Each vault can only have one guardian, typically a DAO consisting of vault depositors.

Allocators are protocol actors whose job is to rebalance the liquidity utilized by Morpho Vaults to optimize interest rates and accessible liquidity. An allocator’s job is to rebalance and optimize the total liquidity, either manually or using bots, to best meet the needs of Morpho borrowers.

Morpho Vaults' operations aren't regulated by the protocol's governance mechanism. Each vault owner is responsible for their vault's governance model. Specific roles, such as the curator and the guardian, are designed to help in establishing transparent and secure governance procedures for a vault.

What Is the Morpho Crypto Token (MORPHO)?

The platform's native cryptocurrency, MORPHO, is envisioned as a 

. Holders of MORPHO have the right to participate in decision-making on the platform's future direction, general rules, deployment of smart contracts and allocation of funds from the treasury. Although Morpho promotes lending and borrowing markets that operate with minimal interference from the protocol's governance community, there are some general guidelines and rules through which the community needs to establish certain standards, minimum requirements or whitelists. MORPHO token holders are instrumental in this process.

The original MORHPO token was launched on Ethereum in June 2022 with a supply cap of 1 billion. However, there were limitations to the original token contract that negatively affected its functionality. Specifically, the token wasn't designed to facilitate efficient on-chain voting. As a result of these limitations, the project decided to relaunch the token, now on an upgraded contract. The new reincarnation of MORPHO will offer better functional capabilities, including more efficient on-chain governance processes. 

As of the time of writing on Nov 17, 2024, the project team has yet to deploy the new token. The new MORPHO will also be a supply-capped crypto, with a maximum and total supply of 1 billion. The token's supply distribution shares are shown in the chart below.

 token before its market launch. Bybit Pre-Market Trading is an over-the-counter (OTC) trading platform that provides access to promising new cryptocurrencies before their listings on the Spot market. The key advantage of the platform is the ability to access cryptocurrencies at desirable rates before the broader crypto market affects their prices.

Bybit's carefully designed curation process ensures that only crypto assets with solid potential and fundamentals are whitelisted for Pre-Market Trading. This saves you the time required to investigate each cryptocurrency, and reduces the risk of investing in scam projects. Naturally, you’re also encouraged to 

 on crypto assets you might consider purchasing through Bybit Pre-Market Trading.

Morpho represents a unique and potentially highly effective approach to DeFi lending and borrowing. The platform's facilitation of isolated and highly customizable lending markets gives DeFi users unmatched freedom in terms of choice and variety. In addition, users who prefer the stability of curated and well-defined risk profiles can take advantage of Morpho Vaults for more predictable yields. The use of the overall underlying protocol liquidity along with entities such as allocators makes Morpho Vaults particularly effective at optimizing lending and borrowing costs.

While custom lending markets launched via the protocol are now Morpho's key focus, the legacy Morpho Optimizers also continue to offer value. P2P matching of lenders and borrowers as an add-on to the standard pool-based mechanism is a functionality many DeFi users will find helpful. Morpho Optimizers can offer lenders and borrowers active on Aave and Compound an alternative and highly effective way of conducting their operations.

With this arsenal of innovative and unique products, the Morpho protocol is quickly shaping up as a leading platform in the lending niche of the DeFi industry.

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Morpho (MORPHO): Leading Efficient, Permissionless Crypto Lending

Puff is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the Ethereum blockchain. Learn more here.

 are designed solely for entertainment, so they can have a lot of unusual and creative features. One example of the interesting applications of meme coins is Puff. This fun coin aims to attract users by adding elements of story and gamification to its design. If you're interested in learning about Puff and seeing why it's so popular lately, check out this guide.

 is a meme coin with a dragon-based theme. It uses a gamified mechanic for distribution and is based on the 

 blockchain. It encourages users to engage in its ecosystem by following along with Puff the Dragon's storyline.

mETHLab is an Ethereum-based lending and borrowing protocol. It's fixed-term and fixed-rate, with no forced 

 of collateral. Users can supply PUFF or mETH tokens and borrow mETH or USDe against these tokens.

 for the mETH Protocol. Users who hold mETH or participate in certain parts of the Puff the Dragon ecosystem can acquire points that will be converted to COOK. People can also acquire COOK by burning PUFF.

Puff aims to attract users with a novel approach to meme coins and lending. Its ecosystem takes the trending 

 ideas of gamification and storytelling and applies them to its products. For example, instead of simply borrowing on the mETHLab protocol, users are encouraged to "cook with Puff the Dragon in the mETHLab." The creators hope this adds a little extra fun and enjoyment that makes people more interested in working with their system.

As the dragon's origin story explains, Puff is also attempting to combine two opposing viewpoints into its ecosystem. Puff the Dragon is a "black and gold dragon" that is part chaos and part lawful order. Similarly, Puff's ecosystem tries to combine the regulation of 

. Unlike other ecosystems that either “play it safe” or focus on experimentation, Puff hopes to combine the two concepts into one system.

 network. All of its features are run through Ethereum’s system, so the project is reliable and secure. However, its secondary layer operates parallel to the main network, so it’s more scalable and features lower fees than Ethereum’s. The full ecosystem is accessible through the project's online website. This helpful interface guides people through staking, borrowing and lending Puff's digital assets in a fun, gamified manner. Unlike with traditional exchanges, the videos, cartoon assets and entertaining visuals are used to create a gamelike, fantasy feel.

The Puff the Dragon project offers far more than just a single, tradeable meme coin. Once you get involved in its ecosystem, you can access all of these exciting features.

The Puff Penthouse is where fans of Puff the Dragon can interact with the whole ecosystem. Users can stake and burn PUFF tokens, or send tokens to the mETHLab through this interface. It features many adorable and intriguing pieces of 3D art that add to the Puff lore.

 within the Puff the Dragon ecosystem. Each NFT features an individualized rendition of the project's dragon. There are currently 8,888 NFTs, ranked according to rarity. The rarest level, Legendary Puff Dragons, has 388 different variations.

Mystic Potions are another set of NFTs within the ecosystem. They come in red, green, blue and other colors, and can be used to mint Puff NFTs. There are 8,888 Mystic Potions, each one a 

. Only original ecosystem users are able to receive a Mystic Potion, but if desired, they can convert it to a Puff NFT and sell it.

PUFF is the main token of the Puff the Dragon ecosystem. In addition to trading like a standard meme coin, it can also be used for staking and lending. PUFF has a total supply of 888.888888 million tokens, 

 are indefinitely locked. Tokens will be distributed as follows:

The PUFF token has undergone plenty of price fluctuation since it was released. Shortly after its launch in April 2024, the coin shot up to an 

. However, as user interest waned, its price dropped to an ATL of $0.03 in September 2024. Nevertheless, there’s still a lot of interest in trading the token. Its price is back up to $0.0947 as of Nov 18, 2024, and many traders are bullish.

Analysis of market conditions from DigitalCoinPrice suggests a slightly different story: a small price decrease of around 2% to 5% in the upcoming weeks before rising in value as 2025 approaches. According to DigitalCoinPrice, by 2025 Puff 

, and by 2030 the token may be worth up to $0.54.

Looking to trade Puff tokens? Bybit now offers the PUFF/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

PUFF is an exciting project that's gotten a lot of interest recently. Thanks to its charming story and blend of helpful features, PUFF has done a great job of maintaining user engagement. The coin's trading volume is also fairly stable. This is a token worth investing in if you enjoy seeking out underrated yet promising meme coins.

 toward Puff the Dragon's design. Some feel that the coin's tokenomics and general structure keep it from being a true meme coin. Instead, they suggest that the coin is operating more like a web3 yield-farming system, but is using the meme coin label to get away with lax regulation and an imprecise road map. This doesn't necessarily mean the coin is doomed to failure, but it does mean you might want to look at it more critically than you might regard other meme coins. Since volatility is inevitable, it's essential to use 

 strategies such as portfolio divestment before buying PUFF.

Puff (PUFF) is an intriguing model of a meme coin that uses features besides memes to attract users. By creating a gamified staking and lending mechanism, Puff hopes to capture users' attention and get them invested in its dragon-themed storyline. Though this project still needs to prove that it can attract more fans, it's on the way to generating significant levels of interest. 

Intermediate

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Puff (PUFF): Entering the Magical Realm of Puff the Dragon

As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

: Donald Trump’s election signals a pivotal shift in cryptocurrency policy, moving from skepticism to advocacy, which may redefine the regulatory landscape.

: The election result triggered immediate and substantial reactions in the crypto markets, particularly evident in Bitcoin's price surge, reflecting heightened investor optimism.

: A Republican-controlled U.S. Congress could lead to clearer and more favorable regulations for digital assets, fostering innovation and investment in the sector.

: As Bitcoin's dominance persists, emerging regulatory clarity may catalyze a resurgence in altcoins, particularly for platforms like Ethereum and Solana, which are poised to benefit from a pro-crypto environment.

Donald Trump’s re-emergence as the “crypto president” represents a dramatic turnaround in his relationship with the cryptocurrency sector. Once a vocal critic, his 2024 campaign embraced Bitcoin, positioning it as central to his economic strategy. This transformation can be attributed to the substantial financial contributions from crypto firms, which played a crucial role in his campaign, underscoring the industry's growing political influence. By vowing to make America the “crypto capital of the planet,” Trump not only appeals to a burgeoning voter base invested in digital assets, but also aligns himself with the interests of powerful crypto stakeholders. This shift could fundamentally alter the regulatory framework governing cryptocurrencies, potentially easing restrictions and fostering an environment more conducive to innovation.

The immediate aftermath of Trump’s victory was characterized by significant volatility in the crypto markets, particularly with Bitcoin (BTC) experiencing a sharp rally from approximately $70K to nearly $90K. This movement was not merely speculative; it reflected a broader alignment of market sentiment with political outcomes. The use of on-chain prediction markets such as Polymarket illustrated how traders adjusted their positions in real time based on election developments. As Trump's victory appeared more likely, BTC’s correlation with these prediction markets intensified, showcasing a direct link between political events and crypto valuations. This responsiveness highlights the increasing intertwining of traditional financial markets with crypto as investors seek to leverage political insights to inform their trading strategies.

Regulatory Outlook and Congressional Influence

With a Republican majority in both chambers of the U.S. Congress, the potential for significant regulatory reforms in the cryptocurrency space is heightened. Historical context reveals that previous efforts, such as the FIT21 Act, aimed to delineate the regulatory authority over digital assets, although it faced challenges in legislative passage. However, the current political landscape, coupled with substantial financial backing from crypto-friendly Super PACs, sets the stage for a more favorable regulatory environment. The election cycle demonstrated the effectiveness of targeted political spending in reshaping legislative priorities, particularly in key Senate races. 

As newly elected officials take office, their pro-crypto stances could lead to expedited discussions and potential passage of critical regulatory frameworks, thereby reducing ambiguity and fostering a more robust investment climate.

While Bitcoin continues to dominate the market narrative, the potential for altcoins to gain traction is significant, especially in light of a supportive regulatory environment. Historical patterns suggest that Bitcoin's dominance often peaks during bull markets, followed by a capital rotation into altcoins as investors seek higher returns. The recent surge in Bitcoin's price has overshadowed altcoins, and yet the incoming administration's pro-crypto posture may catalyze renewed interest in platforms like Ethereum and Solana. These networks, which facilitate smart contracts and decentralized finance (DeFi) applications, stand to benefit from increased investment as regulatory clarity emerges. The influx of capital into altcoin markets could be accelerated by the anticipated legislative focus on fostering innovation within the cryptocurrency sector, marking a potential shift in market dynamics as investors diversify their portfolios beyond Bitcoin.

In conclusion, Trump's presidency heralds a transformative period for the cryptocurrency landscape, characterized by potential regulatory clarity and increased market participation. As the political and financial realms converge, stakeholders in the crypto ecosystem must remain attuned to the evolving landscape, ready to adapt to new opportunities and challenges that arise in this dynamic environment.

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Bybit x Block Scholes Institution Report: Takeaways From the U.S. Election and What to Look For Next

Nansen has partnered with TRON DAO to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. 

Daily Top Performer — Virtuals Protocol (VIRTUAL)

The S&P 500 climbed 0.4%, driven by a nearly 5% surge in Nvidia shares ahead of its highly anticipated earnings report, which lifted market sentiment despite ongoing geopolitical concerns.  Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 0.15%, with Bitcoin rising by 1.13% and Ether dropping by 1.62%, in the past 24 hours.

Today's top performer is VIRTUAL, which surged 5.2% after the launch of Agentstarter, empowering founders to build successful AI agents with Virtuals Protocol.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. Virtuals Protocol introduces 

, an AI agent launchpad offering funding, development support, and distribution for creators. It aims to help founders build successful AI agents within a thriving ecosystem and long-term incentive structure.

Check Out the Latest Prices, Charts, and Data of 

 to integrate the TRON network into Nansen V2, enhancing on-chain analytics for the TRON ecosystem. This collaboration aims to provide developers, users, and projects with valuable data to foster growth and innovation. The integration will offer advanced features like Token God Mode, Wallet Profiler, and Smart Alerts, helping optimize decentralized applications (DApps) and improve transparency within the community. TRON’s high-speed, low-cost blockchain infrastructure will benefit from these enhanced analytics to further empower the ecosystem.

Yesterday, total inflows into BTC Spot ETFs amounted to $600.3 million, with $16.2 million coming from GBTC and $584.1 million from non-GBTC sources.

 allows users to earn XP for transactions, quests, gas fees, and referrals in its wallet. XP, while offchain, is tied to wallet addresses and used to level up and unlock exclusive rewards. Key features include free transactions on the ZERϴ Network, daily quests, and retroactive XP for active wallets before mid-October. Rewards enhance the onchain experience but are non-transferable. The program encourages bridging assets to ZERϴ and active participation to maximize XP and rewards.

Beginner

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Nansen Partners with TRON DAO to Enhance On-Chain Analytics for TRON Ecosystem

Crypto

Blockchain

How does a cryptocurrency work? How to create a cryptocurrency? Understand the mechanisms behind it and learn how to make your own cryptocurrency with this ultimate guide!

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Did you know there are over 20,000 cryptocurrencies listed on 

 (as of August 2022)? Ever since Bitcoin hit the market in 2009, the global financial system has never been the same. With the rate at which new coins are entering the space, it seems easy to create your own cryptocurrency. 

But before you rush into creating your own digital coin, you need to understand exactly what a 

You may have a lot of questions about creating a cryptocurrency, such as: Is it legal to create a cryptocurrency? Do I create a crypto coin or crypto token? Where do I list my cryptocurrency? Do I need millions of dollars to launch a cryptocurrency?

In this article, we dig deep into digital currencies and bring you a detailed guide on how to create a cryptocurrency.

A cryptocurrency is an electronic medium that allows the peer-to-peer transfer of value without the need for authority from third parties. Indeed, the decentralized nature of cryptocurrencies as one of its distinctive traits is what has lured many people like you into its world. 

 to provide a faster and low-cost way to make payments (more so international payments), compared to traditional systems such as banks. Transparency through the ability to record transactions in a public ledger (the blockchain) adds to the charm of cryptocurrencies. 

A cryptocurrency isn’t complete without a blockchain, a decentralized 

 (P2P) network comprising data blocks. These blocks conform to an internode communication protocol, validate new blocks and store information about transactions in the order in which they occur. 

Here’s a closer look at how a blockchain works:

Before you create your own cryptocurrency, you first need to know the 

. While the two terms are often used interchangeably in the crypto world, they differ in some ways. Crypto coins are digital currencies designed to work within a particular blockchain, while crypto tokens are digital assets created by 

 (DApps) and platforms built on top of an existing blockchain. 

Coins are designed from scratch to function as a currency and are built on their blockchain. They are a form of transaction and function similarly to fiat currency. Coins store value and are an exchange means between two parties. For example,

Meanwhile, crypto tokens are digital assets coded within 

 and used in DApps and platforms on an existing blockchain. For instance, ERC-20 tokens are built on top of the Ethereum blockchain. There are many types of tokens, such as gaming tokens, utility tokens such as 

It is typically easier to create a token than a coin as tokens are built on existing blockchains. This means you can take advantage of the existing blockchain technology to create a token. Some tokens can even be created without coding! For example, the 

 helps you generate an ERC-20 token with just a few clicks.

The following are the three ways to build a cryptocurrency, from most to least difficult:

These choices typically need technical knowledge, money and a team. For some cryptocurrency developers, more technologically advanced solutions provide greater customization. 

Option 1: Develop Your Blockchain and Cryptocurrency From Scratch 

By creating codes, you can build your own blockchain and create a native coin. This choice gives you the most creative flexibility and control over your coin, but it requires a significant level of technical skill in blockchain development. You’ll also need to invest money and time in developing the entire blockchain technology.

Option 2: Make Changes to the Existing Blockchain Code 

You can develop your own cryptocurrency by altering an existing blockchain source code, also known as 

, for instance, were forked from Bitcoin. 

This route will undoubtedly require you to have some technical expertise. Luckily, major blockchains such as 

 have open source codes that are easily available on 

After downloading and modifying the source code, you still need to collaborate with a blockchain auditor and seek an experienced attorney counsel. From there, you can begin creating your own cryptocurrency. 

Option 3: Create a Cryptocurrency to Operate on an Existing Blockchain 

If all you wish is to make a crypto token, you don't need to create a new blockchain platform or change an existing blockchain infrastructure. Platforms such as Ethereum are designed to allow people to build on their ecosystem. This option suits people who are unfamiliar with coding. The popular meme token, 

(SHIB), is an ERC-20 token made on the Ethereum blockchain.

The following is a step-by-step guide to creating a cryptocurrency: 

What do you aim to achieve with your cryptocurrency? Do you want it to function as a monetary exchange or as a store of value? 

From the start, you have to define your purpose for the digital currency with a clear use case in mind. Identify a problem and look for ways that your cryptocurrency coin can solve it from a new perspective. 

, a mobile-based crypto token, recognized that smartphone users could be key to the mass adoption of cryptocurrencies. So they created a token that lets anyone with a mobile device send payments using addresses on their contact list. 

Another good example is Bitcoin, which was developed as a decentralized substitute for fiat currencies following the 2008 global recession. Ethereum, by contrast, was built as a platform that fosters the creation of 

After deciding what you want to accomplish with your digital coin, the next step is to name it and design its logo. A logo is the face of your coin and helps it stand out among other brands. 

Next is a critical part of your cryptocurrency project: The creation of a white paper. The first stopover for most investors in the crypto space is a currency’s white paper. This document digs deep into cryptocurrency and provides detailed information about it.

It often includes a statement of the problem, the solution, the crypto’s ecosystem and the tokenomics of your coin. You can write a white paper or hire experts to do it for you. 

You’ll also need a website and social media accounts for your cryptocurrency. Once the white paper is ready, include it on the website together with an “About” page and other essential information about your coin. 

Lastly, to entice people to invest in your project during the 

(IDO), make sure that all documentation regarding your project is simple, clear and free of excessive technical jargon.

Next is to select a method for reaching a consensus on the validation of your cryptocurrency transactions. A 

 provides a system for nodes on a computer network to agree on the validity of transactions to help secure that network. 

The two most common consensus mechanisms are 

 (PoS). They differ in various ways as shown below:

Initially, PoW was the commonly used method. It’s a computer-heavy protocol that underpins the Bitcoin blockchain and many other cryptocurrencies. Miners engage in a cutthroat competition to solve a mathematical puzzle on the PoW system to verify transactions. A reward in the form of cryptocurrencies is awarded to the miner who successfully adds to the blockchain block. 

However, the PoW consensus mechanism has come under serious criticism due to its electricity consumption and concomitant strain on the environment. Consequently, mechanisms that are less heavy on computing resources have been developed. PoS, in which a validator confirms transactions by 

 coins rather than through competitive mining, is viewed as a credible alternative to PoW. 

You can also opt for other consensus mechanisms that are available in the blockchain space. 

 (DPoS) is a popular version of PoS used by 

Regardless of the method of creating a cryptocurrency that you settle on, you need to have a blockchain. Depending on the consensus mechanism you feel best suits your cryptocurrency, you’ll need to pick an existing blockchain platform that supports it. For example, if you want to use a PoS algorithm, then you can opt for the

There are four main types of blockchains: Public, private, hybrid and consortium. Have a look at the details of each below:

If you’re creating a cryptocurrency for private use, then a permissioned blockchain is necessary, rather than a public blockchain that can be accessed by anyone on the web. 

Once you’ve decided on a platform, the next step is downloading the necessary software and configuring a node. Nodes are the devices that run a blockchain’s software. A node computer participates in validating and relaying transactions and storing the transaction history on the blockchain.

available to validate crypto transactions. When you create your cryptocurrency it is important for you to know which types of nodes you want for your blockchain.

Remember, creating a node from scratch needs advanced technical skills. Most blockchains have an existing node structure used to validate transactions. 

5. Establish the Blockchain Architecture 

In this phase, you plan the internal workings of your cryptocurrency's infrastructure. How will your cryptocurrency’s network operate? This caters to things such as the transactions' format, the network protocol and the consensus algorithm.

If you opt to build your cryptocurrency on an existing blockchain, you’ll benefit from its existing architecture. Most major blockchains have an immutable, proven, decentralized cryptographic architecture. 

A basic blockchain architecture looks like this:

Additionally, you need to come up with your coin’s tokenomics at this point. How many coins do you intend to produce? What will be the size of the circulating supply? Careful consideration of 

 factors is essential for successful cryptocurrency creation. 

Always strike a balance. Whenever there is an excessive number of coins in circulation, the coin may have a low value. In contrast, fewer coins might be expensive for investors to buy into them. 

After designing your cryptocurrency's internal architecture, the next is to incorporate the application programming interfaces (APIs). An API provides a channel of communication between nodes in a network and also helps make software intelligible to end users). 

Integrating an API plays an important role in ensuring the security and privacy of your cryptocurrency. APIs also ensure collaboration within the blockchain, especially when carrying out transactions. 

When selecting an API, ensure that your preferred blockchain has functionality for it. For instance, if you’re using a PoW blockchain, you’ll need to integrate the Bitcoin API. 

For crypto adoption success, the interfaces used must be simple and beautiful to look at. A well-designed crypto interface draws in new users and adds to a customer’s experience. 

Have an intuitive user interface for your crypto. Remember cryptocurrencies are already a complex subject. So, users are looking for a user-friendly and easy-to-navigate interface for their crypto transactions.

 are good sources for inspiration for your cryptocurrency interface. 

Once you’ve installed the node, the next step is to build a wallet address to facilitate transactions. A wallet address is a unique string of letters and numbers associated with a particular cryptocurrency. 

You can create a wallet address by utilizing an online service or an installed program on your local computer. 

While cryptocurrency started free from government interference, the field has been attracting a lot of attention from regulators. The legality and regulations around cryptocurrencies differ, depending on the jurisdiction. 

Don’t mint your own crypto coin if you aren’t in a 

. And before creating your ICO, start researching on whether ICOs are allowed in your country. You can engage a legal advisor to obtain the right information. Also, at the bottom of your coin’s white paper, ensure that you capture the legal aspects of your project. 

To ensure the success of your cryptocurrency creation, you need to market it. To create buzz around the coin, you can announce airdrops on your official social media accounts. You can also engage influencers to market the cryptocurrency to their followers. 

You’ll need to create an active and vibrant crypto community on social media channels, such as Telegram, Reddit and Twitter. You can promote your coin’s ICO by having a strong white paper, or hire a marketing firm to do the job. You can also have an airdrop campaign, similar to Arbitrum’s 

Once your cryptocurrency is up and running, you need to regularly audit the system to build credibility and trust with your crypto’s users. 

How Much Does It Cost to Create a Cryptocurrency?

The cost of creating your own coin depends on the complexity of the project. For crypto coins (which are considered more flexible and secure), the cost is higher due to the immense initial development costs and recurring maintenance costs. 

, and the cost may go higher depending on its level of customization. 

You’ll need to hire a blockchain developer and other crypto experts, including designers and legal advisors, to help with creation. The average rate for a blockchain developer around the world is between 

How to Create a Cryptocurrency: Step-by-Step Guide

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