How does the value of a Native Token be calculated?

Developers Native Tokens
1

I was wondering: if a native token is created. How does the value be calculated?
Say 1 Million tokens were created. How is the value calculated?
Is there an API that does the calculations? How does it work? I didn’t see anything from the documentations.

2

What do you mean with ‘value’?
Is it quantity or something else?
Please explain…

3

Like for example 1 BTC ~ 51,210 USD.
How is the value of our native tokens calculated? Based on the total supply, etc?

4

two parties who make a deal to exchange the token vs some other token. They set a price. Exchanges show you the latest price that two parties agreed on.
A native token has no price, until the first one trades/exchanges it.

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5

the value of a NT that does not represent something physical is completely subjective

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6

Okay, I’m making a project that will create my own exchange. I’m just curious how the value of the native token is determined… So, if they convert their USD to the token. What is the price then? Is it similar to ETH Tokens? I’m so confused.
I’m planning to use the Stripe API to instantaneously convert USD into our token. If we’re making our own exchange how is the price calculated? lol.

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7

I have a similar idea If you are interested in we can work together.

8

That’s extremely subjective. Ideally you’re token would have the same value as the money people invest in it… let’s say I use 10 usd to buy 1000 tokens of yours. Ideally your tokens would worth 0.01 usd but if nobody wants to buy it then… I would have to lower the price until somebody is willing to buy it for that price so I would lose money. There is no objective value for a token unless you can attach it to something else like a house, a car… or let’s say another coin as USD (that’s how USDT works)

9

I did more research and it seems like smart contracts are required to tie any value to any coin or to even list them on DeX… So, in theory there’s no way to tie value to a coin then, huh?

10

Nope, you can do it artificially, here are the white papers from tether and DAI so you can see how they tie their value to USD Tether USDT whitepapers - whitepaper.io and Dai DAI whitepapers - whitepaper.io