![]() Once a project team is ready to launch its mainnet, it usually conducts a coin swap. Typically, project teams launch testnets of their own blockchains before releasing a publicly available cryptocurrency mainnet. This reduces potential technical issues and streamlines the entire ICO investment process. For project teams, it’s easier to raise funds and distribute tokens via an existing blockchain. The process of raising money during an ICO doesn’t require a new project to already have an existing, standalone blockchain. Many blockchain projects issue tokens during their ICOs with the intention of creating their own blockchain in the future. There are several reasons why project teams do this. Most cryptocurrency projects on the market in 2018 actually start out by launching a digital token rather than a coin. While many hard fork coins are ranked high in terms of market cap, these projects do not represent a majority of cryptocurrencies. Similar to how dollars can be exchanged for nearly any good or service available, coins can be exchanged for specific items, but the possibilities are general, not specific. Basically, coins cannot function specifically, but only as a general measure of value. They are sent, received, mined, and held on a public blockchain. These characteristics allow for Bitcoin, or any altcoin, to inherently have value and act as a medium of exchange.It is important to note that coins do not perform any function besides acting as money. It has the same characteristics as money: easily exchangeable, divisible, secure against counterfeit, and has a limited supply. Bitcoin is the most famous example of a coin. This digital money is kept secure using encryption, which is the process of converting meaningful information into a secret code. Coin refers to a form of currency that’s held digitally. This is perhaps the most liberally used word in the world of digital currencies.
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