Tokens play a major role in the crowdfunding process of platform-based businesses and have been currently adopted by startups looking to bypass the difficult and costly auditing and regulatory burden around traditional funding models via banks or other venture financiers. Tokens help to raise funds from both platform users and potential investors. The token-based fundraising terms called Initial Public Offering (IPO), the Initial Coin Offering (ICO).
Token-Based Business Models
If you having an innovative idea but does not have the capital fund to move it into reality then the token-based funding models is the best one because it allows the startup or entrepreneurs to get the capital funds through token-based business models like IPO/ICO or STO.
So instead of raising capital funds through ICO or IPO getting massive adoption and this is the best solution for startups and organizations.
The latest technological improvements have build up the number of applications of blockchain through smart contracts to definitely move crypto-assets according to specified rules. Specifically, crypto tokens give the best opportunity to create businesses and automate them while managing the record entire data in the blockchain.
Many startups and institutions adopted token-based business models. There are four types of tokens available in the market.
Payment Tokens — These type of tokens using in the payments model like acquiring goods or services or as a means of money or value transfer
Utility Tokens — These types of tokens offer digital access to applications that developed on the top of blockchain networks
Security Tokens — These types tokens namely called Asset/Debt tokens that have a similar role as a share and for the potential investors they provide real-world assets such as a debt or equity security owned.
Hybrid Tokens — The last one is Hybrid, these types of tokens developed by a mixture of the above three features.
ICO Token process is composed of three basic steps:
1.The white paper publication: the initial report or project where the startup or company present to potential investors and supporters of the business and other important features.
2.Launch of tokens: often published via smart contract whose code is public. Mostly, the token generation is composed of two sub-steps: pre-allotment, offering a discount on the purchase of tokens and allotment, at full price.
3.Token listing: Complete the ICO, tokens are listed in one or more popular exchange platforms.
Looking for the best Token Development Company? Or want to launch your own token in the current market? You are in the right place!
Developcoins — Hybrid Token Development Company
At Developcoins, we specialize in delivering custom token development solutions that can create your tokens and automate your business processes and provide a better ROI to your one-time token investments.
Create tokens tailor-made for your business requirement. Customizing solutions helps to build complex tokens using blockchain networks like Ethereum, EOS Tron, Tezos Minter and so on. Our customized token development services empower tokens to evolve and reinvent processes — enabling you to deliver reliable, stable and faster results.