For an organisation to have its own cryptocurrency, there should be a good business case for having a cryptocurrency. The benefits can be to the cryptocurrency holders, or to the organisation that has create its own cryptocurrency, or benefits for both. Several of the possible good reasons are given below:

International usage

Where the organisation plans to provide goods and services in multiple countries, then the ability to pay using the same cryptocurrency instead of fiat can save exchange rate costs. It can also save time because there is no need to find a currency exchange and to change from one fiat currency to another.

Saving costs

Where using the cryptocurrency would be cheaper than using fiat, it makes sense to have a cryptocurrency. This can especially be the case when making international transfers, where charges can be around 4% of the transaction value.

Incentivisation

If the cryptocurrency is the sole means of payment for the organisation’s goods and services, then using the cryptocurrency can be used to align incentives from various parties, reward good behaviour, and encourage people to use the organisation’s app repeatedly (i.e. encourages retention).

Supporting the blockchain industry

For the cryptocurrency and blockchain world to gain mass adoption, it needs a good business case with regular usage in real life. Hence, if a business idea is good and will allow people to use cryptocurrency for basic or regular needs, then it is a mutual benefit for the blockchain and cryptocurrency industry, the organisation and the token holders. An example is if people use a cryptocurrency to order their meals.

Branding

If an organisation has its own cryptocurrency, then each time someone transacts in that cryptocurrency, the person can recognise the brand of the organisation. This can help the organisation and the token holder community to grow. The token holders benefit because the growth of the organisation can lead to mass adoption and an increase in the value of their tokens.

Development of the organisation’s goods, services and platform

Certain projects require a lot of funding to be able to provide a much needed good or service to people. If an ICO approach is taken, it allows the organisation to raise sufficient funding for the project to be successful. The benefit is not just to the organisation but also to users of the goods, services and platform because if the organisation did not raise the funding and didn’t provide the goods, services and platform, then people who would benefit from them, would lose out.

An example is if commuters take 2 hours to go from city A to city B, and it costs them £20 per commute, but the government does not have the funding to build a tunnel that would reduce the travel time to 1 hour and costs to £10 per commute. A private organisation can come together and offer to build the tunnel and to only accept its own tokens on the tunnel for each commute. However, because it cannot fund it by itself, it can sell the tokens early and thereby build the tunnel. After completion, the commuters benefit because they now have a tunnel that would not otherwise have been built and now they have reduced travel time and costs.

Decentralisation

Where decentralisation would reduce the risk of a single point of failure or removes the need for a trusted third party (if there are trust issues), then a cryptocurrency can be beneficial for the users.

Immutability

Where there is a significant risk of data being changed, a good blockchain and cryptocurrency provides an opportunity to store the data and make it very difficult to alter.

This article has been presented by Home Eats, a company bringing the new cryptocurrency “EAT” Token to homemade food, where home cooks can sell to customers desiring homemade food. Why have your standard office lunch each day, when you can have homemade food? The pre-sale of EAT Token will be in September 2018 and the ICO in October 2018. More information can be found at http://homeeats.co.uk/ and the whitepaper.

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