Now your MetaMask account comes into play. Since you are creating ERC-20 tokens (i.e. deploying a smart contract) and they will be stored on the Ethereum blockchain, you need to pay gas to moves things along. With the gas prices set to 1 gwei my 1000 Cool token cost me about 1.50$ to create. Cool.

2–5 minutes later

I am now in control of my very own ERC-20 compliant cryptocurrency! The sky is the limit!

I can now add a website, description and avatar to fully individualize my token. I can mint and airdrop as many tokens as I like and distribute them to as many addresses as I like through two mouse clicks. All the recipients need are ERC-20 compliant wallets. It does not get easier than that.

What are Hexel’s unique selling points?

First and foremost: simplicity. As you have seen, creating a token is so easy even my mother could do it (once I set up her MetaMask and load some ETH on it). Inviting others and distributing your tokens is also incredibly simple and intuitive so that nothing stands in your way to create your own little token economy.

Second, the community factor. Getting your hyperlocal community more involved through your own token sounds a little bit like future talk but it is probably not that long down the road. Having a token for your inner circle of friends, having a token for you local community where you earn token by fulfilling communal task, stocking up on your favorite burger place’s token to pay with that specific token and receive a discount. Humans want and need to be part of a community and no many things symbolize that more than using a shared currency.

Third, direct customer interaction. In the not too distant future we will see big fast food chains, retailers, universities, supermarket chains, etc. but also your everyday mom and pop stores jump on the blockchain train. A brand token makes direct marketing and cashback options easier while at the same time increases customer feel-good and brand connection. Additionally, you can create a lock-in effect making customers reluctant to go to a competitor because they cannot earn/spend the brand token there.

What does Hexel’s competition look like?

Hexel’s direct and strongest competition is yourself. Ethereum, being the world computer that it is, enables anyone to create a token by programming one. There are also a variety of DIY projects and websites. But since Hexel is focused mostly on non-technical users and simplicity, we will leave that option be and take a look at other projects that let you create your own token with as little technical knowledge as possible.

Wavesplatform

The Wavesplatform is not focused on creating your own token but also has a similarly easy token creation process. Since it costs 1 Wave to mint your token on Waves, you will need to buy at least 1 Waves before you can start (for Hexel you need ETH). Your tokens are created on the Wave blockchain and nearly immediately tradeable on the Waves DEX.

CoinLaunch

CoinLaunch not only gives you the ability to create your own ERC-20 token, they are focused on giving you the abilities you launch your own ICO based on that token. That focus leads to a more complicated process than Hexel and is clearly directly on a business level.

WandX

WandX promises to be a trading platform where you can create ERC-20 token creating at the same time. WandX claims to “provides tools to create tokens that can be backed by a digital asset such as loyalty points” but I was not able to create my own token in their beta just yet.

Byteball

Byteball also enables you to create your own token, however the process is more complicated and involves a number of rather complicated steps for users that have not spend a lot of time in the cryptospehre.

Edit: Thanks to Michael Jankie for pointing Artemine out to me.

Artemine ICO Factory

The name already suggests what Artemine ICO Factory is offering, namely it “allows anyone to create fully compatible ERC20 Ethereum Tokens and ICO Smart Contracts with just one Artemine transaction”. The setup requires some technical knowledge as you have to actually interact with the smart contract that is your token yourself and set the parameters such as name, supply, etc. by hand. Artemine supplies a thorough help-me.

You can see that the list is rather short. Hexel seems to have found a niche in the market as we know it today.

What are Hexel’s competitive advantages/disadvantages?

Only Wavesplatform can compete with the simplicity and speed of the token creation process that Hexel offers. The other ways of creating your token are more complicated and/or directed at another crowd.

When it comes to distribution, sharing and using the new token, Hexel has a clear advantage over Waves because it uses the ERC-20 standard. ERC-20 tokens are by far the most common at the moment and in cryptoeconomics the network effect is one of the most significant adoption factors. The distribution process of Hexel is, once more, extremely simple and easy to use.

Hexel is backed by Y-Combinator, a known and respected incubator. Therefore the team will have a lot of resources, financial and otherwise, to bring their product forward. In the highly volatile crypto space, it is paramount to be a known brand and through Y-Combinator’s resources and support Hexel has a head start.

However, Waves lists the new token on its own DEX, which makes it quickly tradeable. That is probably not what most community token creators have in mind but it gives the token creator great possibilities that Hexel token creators do not have.

Since the service is free at the moment (safe for the Ethereum transaction fees), it is unclear how Hexel wants to monetize its service and whether they the business model will stand the test of time.

Not specifically Hexel’s disadvatange, but in order to create and send your newly created tokens, you have to pay gas. Depending on the price, this can render the entire idea of a hyperlocal token obsolete since it can become simply to expensive to engange in transactions.

Furthermore, Hexel’s idea is in my opinion relatively easy to copy (by more talented people than myself). The only thing standing between Hexel and a number of clones is the first mover advantage.

Last words

“Do one thing and do it well” is one the most basic rules of successful businesses and should be so for the blockchain environment too. Hexel has identified a niche in the market and has created an excellent tool to fill that need. It is easy to use, fast and intuitive; everything you want from a blockchain service. Backed through Y-Combinator, Hexel has resources and know-how available to drive towards fast adoption. But the competition in the crypto environment is usually fast and agressive and we will probably see a number of similar projects trying to catch up with Hexel soon. They have a good head start.

PS: Since I actually did create my Cool token and I am not a very cool person, I have no need for 1000 of those. If you want some, feel free to contact me :).