The term token is often used to refer to all the existing coins in the cryptocurrency market. However, this is not at all the case. In this article, we will try to understand this issue as well as how the emirex token price is formed.
What are tokes needed for?
Tokens are digital virtual units issued by anyone. Their creators determine the cost. They operate based on blockchain technology. Since cryptocurrencies are also based on this technology, this is exactly what is confusing.
Tokens are issued by certain persons, who invested goods, various services, and shares of enterprises in their values. Such a process has its name – tokenization. You can tokenize securities, company shares, various products, etc. Tokens are in the electronic wallets of their creators. They are transferred on the terms set by them.
The main purpose of the token is the barter of certain values, the implementation of which in reality is complicated by the distance between the parties to the transactions, or the size of the very values involved in the transactions.
How is the starting price of a token determined?
On Emirex the value of the token can only be determined after the completion of the ICO, by counting the number of all collected coins.
To be sure, that the organizers of the ICO do not hide the amount of money raised from investors when calculating the cost of a token, as a rule, the wallet in the blockchain of a certain cryptocurrency is shown through which the funds were collected.
The blockchain explorer reflects the following parameters: wallet address, balance, number of transactions, and date of the last transaction.
Therefore, at the end of the ICO, all funds raised in all types of cryptocurrencies are counted. The number of tokens is multiplied by the rate at the time of completion of the fees.