Today’s conditions are now different from when interested retail investors freely plowed in spare cash to blockchain projects. Startups have reacted to this change by increasingly making use of tailor-made token sale solutions.
What this entails is that startups no longer have to build a crowdsale platform from scratch and can instead take advantage of customizable services to launch a full ICO in as little as two weeks.
Token sale solutions are available seeing as a crowded market makes it increasingly imperative for startups to focus on delivering a finished product as opposed to working to develop their own crowdsale platform.
Who can help launch my ICO?
Eliminating fraudulent ICOs is a key focus right now as the markets desperately need to foster a wider sense of legitimacy. However, before this, companies are simply trying to make the risky fundraising mechanism that is the Initial Coin Offering a little more affordable and safer for startups.
Amir Kaltak, CEO of LEXIT, the M&A marketplace which recently launched its LexICO platform said: “Startups looking to kickstart their campaign can be slowed down by the initial ICO process, which can take up to months to prepare.”
“We think it’s important that these projects can focus on more important activities such as developing their product rather than spending time and money working on a platform that they will only use once.”
LexICO allows startups to launch an ICO, airdrop and bounty campaigns on its platform with discounts offered to those who use LXT tokens to pay. This is the native LEXIT token which hit the BitMart exchange on November 1st.
Though priced on the higher side, another option for startups is Token Get, which carries a marketing module to automate activities such as airdrop management. You can book a demo and see if the bells and whistles are worth the premium; a real focus exists here on ensuring ROI.
Polymath on the other hand deals only in security token launches, possibly one of the first token launch platforms out there. Although all network transactions are locked in with their POLY tokens, the platform has a completely seamless and well-managed KYC backend integration.
Getting a working product to market ASAP
The reality is that it has become more difficult than ever before to raise money through an ICO. This offers a possible explanation for the shift in startups to using ready-made solutions – it makes perfect financial sense – which can see their ICO launched in a matter of days.
Current climate aside, proving legitimacy, let alone potential, can be difficult in such a crowded market and a number of reported fraudulent ICOs tend to make this process even more challenging. Launching through token sale platforms adds a layer of credibility and will hopefully help begin to rebuild trust in the ICO.