While cryptocurrencies such as Bitcoin, Ethereum, Litecoin are currently popular, there are digital currencies that have popped up which you might have not heard of, and which you might not want to hear of again given their unconventional and at times comical origin. Their existence is also proof of how easy it is to create cryptocurrencies.
How is cryptocurrency created?
Though digital coins and tokens are both considered cryptocurrencies, the former is able to function on its own blockchain while the latter exists atop an already existing infrastructure. Coins possess its own independent transaction ledgers, while tokens depend on the technology they are sitting atop on to secure and verify transactions. Essentially, coins are utilized to transfer wealth and tokens serve as contracts for anything such as tickets to events, loyalty points, etc.
Technical know-how is required to create both types of cryptocurrencies. Producing digital coins needs the creation of its own blockchain or using and modifying an existing one. Blockchain creation requires intense knowledge on coding, while the latter can be done by using and changing the open-source code present on Github and launching a brand new blockchain using a new name.
Those with little technical background can still create a cryptocurrency using a cryptocurrency creation platform – a tool that will perform the necessary technical work and eventually produce a custom token or coin. One only need to type in the parameters required such as the logo, and the quantity of coins given for signing a specific block. Templates are also already built that one need only give a specific name and symbol. WalletBuilders provide such a service for a fee.
Tokens are easier to create as these are smart contracts that can represent any given asset such as an event ticket or actual physical currency. These may even have no value or purpose other than exchanging among peers or friends. This is a simple and affordable way to create a cryptocurrency as it depends on the existing technology found in already established currencies such as Bitcoin.
Hiring a developer is another way to create cryptocurrencies. The process of building and maintaining the technical infrastructure required for its operation becomes the developer’s responsibility – and one that you need to adequately pay for.
The following are cryptocurrencies created out of necessity, humor, or promotion. Feel free to either use these as inspiration to create your own, or as examples on how not to make one.
1. The Bacoin
Oscar Mayer has been producing bacon for more than a hundred years. Maybe in an effort to keep abreast of the times, and considering that the company is a division of Kraft Heinz – a merger made possible via a $10 billion investment from Warren Buffet’s Berkshire Hathaway and Brazilian firm 3G Capital – Oscar Mayer has decided to create its own cryptocurrency.
Despite Buffet’s explicit dislike of cryptocurrency as an investment tool due to his belief that bitcoin purchases are more of a speculation and a gamble or game, not an investment, Oscar Mayer still put out the Bacoin – a coin that can be used to redeem packs of bacon. How can you get a coin? The Bacoin cannot be purchased. Instead, similar to a gamble, one needs to win it by completing and submitting a registration form at its oscarmayerbacoin.com site. Once registered, a user will receive an opportunity to “Instant Win Game” for a specific day. A user will either receive a “Bacoin” or be advised that “Bummer! No luck on the yield today. Try again tomorrow.” Currently, the value of one Bacoin is equal to 12 slices of Oscar Mayer Bacon. The value of Bacoin increases as its popularity in social media sites similarly increase.
Despite its name, the Bananacoin is a cryptocurrency that means serious business. The value of one Bananacoin is equal to 1 kilogram of bananas. Backed by professionals with more than three years of experience in growing bananas in the first environmentally friendly plantation in Laos, Bananacoin falls under the Bananacoin Project. Its mission is to grow healthy and organic “Lady Finger” bananas to be exported to China. Bananacoin will produce tokens via the Ethereum blockchain.
A token of Bananacoin is a type of contract or utility token in the sense that it is for the purchase of goods to be created in the future. It is not to be considered as money as it is not a “legal means of payment” and it possesses no currency value. The Bananacoin is solely to be used within the boundaries of the Bananacoin project.
Initially created as a meme that everyone eventually took seriously, Garlicoin was launched by Reddit poster “DigitalizedOrange” – the same creator of a satirical magazine called Meme Insider. Garlicoin describes itself as “the cryptocurrency you never thought you needed and you probably don’t.” The Garlicoin website unabashedly states that it was “born from the shitposts of Reddit” and its code was copy-pasted from the digital currency Litecoin – which is a copy of Bitcoin.
Though DigitalizedOrange believes the Garlicoin “is pretty useless”, it co-founder and media liaison “MIP5” thinks otherwise. According to MIP5, “Garlicoin serves the same purpose as Bitcoin and Litecoin, a decentralized means of exchangeable currency, though the differences between those coins and Garlicoin comes down to our primary focus on community.”
Nine people are part of Garlicoin’s development team, all of whom are working for the sheer “fun and experience”. They are also working for free. Another Garlicoin developer, “Kryptonite”, refuse to call the cryptocurrency a joke. The developer added, “But is born from a joke, people have invested a lot of time and effort into Garlicoin, to build an easy to use platform for newbies, I think we are almost there especially with GarlicWallet apps and the browser miner, these greatly lower the barrier for entry.”
Currently, Garlicoin’s modest market cap is under US$1 million. DigitalizedOrange is similarly surprised that everyone took his or her joke seriously, “This cryptocurrency was never meant to revolutionize anything, it is completely a joke. I am actually surprised it has any value at all. Reddit is stupid (love you guys).”