When a Blockchain company is starting up, they are likely to hold an Initial Coin Offering (ICO) as a way of raising funds required to build platform functionality and offer their services to their customers. However, the whole process of setting up an ICO and managing it can get quite overwhelming, considering that most people and companies are doing it for the first time with limited experience and resources.As ICOs are a new way of fundraising, there are still no set rules or guides on how to go about offering tokens to fund your business. You will most likely be on your own, save for advice that you might get from other companies that have successfully run ICOs before.
The Definition of BlockToken
This is where BlockToken comes in — BlockToken is a next-generation token issuance platform for launching and marketing Initial Coin Offerings (ICOs). This platform was created to meet a need in the market for more structured ICOs and to provide services that you will need when you are carrying out an ICO. This is from the ideation phase until customer acquisition, token distribution and token trading. BlockToken not only simplifies this whole process but also helps to automate several elements of the project.
BlockToken Features
The overall goal of this platform is to manage, market and issue tokens.They do this by offering the following services to blockchain companies:
- Token creation and token issuance
- Capacity to come up with complex tokens and revenue streams
- Capacity to fractionalize or tokenize assets
- Creating a global network of crypto buyers
- Capacity to distribute token offerings through brokers, partners, and the media
- Assist with compliance and regulatory issues
- Token liquidity and trading have been incorporated into the design
The main aim of the BlockToken platform is to help create a structured solution when it comes to ICOs. The main advantage of this is that it can help you build up the momentum required for a successful ICO.The platform focuses on the 7 key pillars that form the foundation of a successful token offering.These include:
- Business modeling and whitepaper development
- Financial preparation
- Research and order vetting
- Audience development, marketing, and ICO distribution
- Token design, economics, and issuance
- Management, token liquidity, and ongoing customer support
- Access to various service providers and professionals, such as whitepaper writers, developers, tax and legal specialists.
Advantages of Using the BlockToken Platform
- Project creators and entrepreneurs can enjoy several benefits as a result of using the BlockToken platform.
- Being able to fast-track the ICO process
- Reduced costs as a result of using fewer third parties
- A simpler process of token creation and liquidity
- Better access to investors and an audience
- A clearer picture of the costs involved in the whole process
- Legal clarity
- Professional marketers
- Favorable governance rules for start-ups
- Better clarity on how the project will be executed
- Better project quality
- Being able to access experienced and professional crypto partners and advisors
- The ability to leverage blockchain and DApps on the BlockToken platform
What Are Initial Coin Offerings (ICOs)?
The ICO is the first time that a new token is made available to the public for purchase. The tokens are developed by a blockchain company to raise funds to support a project they are working on or a new venture. You can exchange these tokens for services on the platform, or you can trade them in the crypto market.
Phases of a Token Offering
There are two main phases when it comes to token offering; the pre-sale and the main sale. During the pre-sale, investors can buy the tokens at a reduced price. This makes it possible for the developer to start the early development of the project. During the main sale, tokens are open for sale to members of the public for a few weeks with the goal of reaching the soft cap or hard cap.When the soft cap amount is not reached, then the blockchain company will refund all the money to investors. Alternatively, you can opt for Flex Funding. In this option, the project creator gets to keep all the money that they have raised from investors, even if they don’t raise the entire target amount that they had initially set. BlockToken is going to use the Flex Funding option with a hard cap that sets a limit on the amount of money raised and tokens issued. In case more money is required in future for the project, BlockToken will issue more tokens again.
Purchasing and Trading Tokens
To buy BLT tokens, you will have to pay for it either using ETH, BTC or fiat currencies, such as the US Dollar or Euro. Once the ICO is over, the token will be listed in various exchanges. You can then choose to sell your tokens or buy more.
Key Services Offered by BlockToken
This platform offers key services that are very important to the successful setup and delivery of a token campaign.
- Advisory Services: You can get advisory services about your ICO from partner and advisory companies. You can also get customized blockchain solutions through partner firms.
- Automated Onboarding and Issuance: Get automated onboarding, vetting, and structured offers. You will also get structured legal agreements and common offers. Token creation, protocols, and issuance are already structured in compliance with KYC and issuer rules.
- Automated Distribution: There are several automated channels you can use for token distribution including media, partnerships, and brokers. Also, you can go for packaged marketing campaigns.
- Post ICO: This deals with a listing of your tokens in exchanges, liquidity issues and the ability to trade or even convert your tokens into fiat currency. It also handles governance issues after the ICO and any other token issuances that you might have afterward.
The BlockToken Accelerator Program
BlockToken acknowledges that startups face a lot of challenges, especially when it comes to raising capital for running the business. BlockToken believes that startups can make a big difference and revolutionize the industry. That’s why BlockToken has started the BlockToken Accelerator Program, which will be launched after the token issuance process has been completed.This program will be targeted towards helping blockchain companies with the following focus in mind:
- Early stage blockchain ventures
- Trying to create a connection between technology and industry professionals
- Leveraging the use of the BlockToken platform
The accelerator program will also make it possible for approved ventures to gain access to capital through tokens or cryptocurrencies that can be traded in the market.
BlockToken’s Business Model
BlockToken uses a partnership business model. This means that it’s dependent on bringing various business partners on board to create a thriving partner network between different service providers such as:
- Blockchain developers
- Marketers who are specialized in marketing cryptos
- Legal experts
- Security
- Advisory services when it comes to token offerings
Through this model, once a partner has been vetted and verified, they can become a part of the BlockToken platform. Every company that signs up to the platform to use BlockToken services will have a single transferable legal agreement. The company should also agree to follow the structured format of doing things as instructed by BlockToken and pay the clearly defined prices.
How to Run a Campaign on BlockToken
If you want to launch your project on BlockToken, here is the process that you will go through:
During the Pre-ICO Period
- Pre-ICO preparation
- Writing of the whitepaper
- Advisory services
- Research and vetting
- Getting onboard the platform
- Listing
During the ICO
- Token generation
- Security protocols
- Marketing
- Partner distribution
- Token distribution
- Communication
Post ICO
- Trading tokens
Verification
Before you are allowed to use the BlockToken platform, you will have to undergo vetting and verification through KYC/AML processes. The KYC (Know Your Customer) procedure is usually carried out in compliance with anti-money laundering practices. Research is also done to establish the authenticity of your project to ensure that investors are presented with quality opportunities only.
Marketing Campaigns
BlockToken will carry out marketing campaigns and PR campaigns to create its own global audience within the cryptocurrency community. However, you are also free to market your project independently off the platform. There are different marketing packages so you can choose what will work for you or what you can afford to pay.
Syndication
The platform will allow for syndication and lead investors to make it possible for investors to join different syndicates. This will minimize the need for multiple reviews at different levels. It will also ensure that lead investors are rewarded for their efforts.
Income Streams
BlockToken makes money from the platform by charging fees to set up and list projects. It also makes money from the advisory services that it provides and for managing the marketing campaigns. BlockToken will also generate more income from token trading once it gets listed.
Fees Paid by Users of the BlockToken Platform
Both project creators and investors can sign up for an account on the BlockToken platform free of charge.After this, you will be expected to pay certain fees as follows:
- A 2,000 to 5,000 BLT token fee when you list a project
- A 3% to 5% fee of the total amount raised during your campaign
- 10,000 BLT for creating a new token on the platform
- Customized fees for managing marketing campaigns
Technical Aspects of BlockToken
The main components of the BlockToken platform consist of the: Project Dashboard
- Token Design
- Marketing Automation
- Whitelist Management
- BLT Digital Wallet
- BLT Acceleration Program
- KYC/AML
- Token Exchange
BlockToken Digital Wallet
BlockToken will develop its own BlockToken digital wallet. This will make it easier to be a part of the blockchain economy and will make it possible for users on the platform to send and receive funds to each other. This wallet will not only hold BLT tokens but will also hold other selected cryptocurrencies as well.
Developer API
This platform will have an API that’s scalable, can be tested and is secure. This feature will make it possible for other developers to create their own DApps from this platform.
BlockToken ICO
BlockToken is launching its private token offering in July 2018 with a hard cap of $38 million with a total supply of 250 million BLT. You can purchase the tokens using ETH.
How to Buy BlockToken Tokens
- Sign up for a digital wallet that’s Ethereum compliant. This is because you will be given ERC-20 BlockToken tokens, so you need a digital wallet that’s ERC compliant.
- Purchase tokens: Do this by going to the following web address https://blocktoken.ai and click on the ‘Buy Tokens’ tab. Follow the steps that follow.
- Fill out the token sale form correctly, and then transfer your ETH to the address provided.
- Confirm your BLT token allocation. Do this by checking the “Check Token Allocation” link, which you can find on the sales page. Keep in mind that a confirmation email is not going to be sent.
Conclusion
There’s a gap in the industry when it comes to the process of launching ICOs. Since this is a new way of raising funds for blockchain startups, there’s still a lot that’s not yet known or understood about it. Therefore, most companies will end up stumbling through this process without a lot of information or experience on how to do this on their own.But with the launch of BlockToken, this doesn’t have to be the case anymore. BlockToken is a platform that offers end to end solutions when it comes to ICOs and token distribution and management. It automates the process, making it much simpler. It also provides blockchain startups with key services that they need to get their ICOs off the ground. It helps to connect them with relevant and verified service providers. All this works together to increase the chances of a company carrying out a successful ICO. This is because all your attention will be on making the ICO successful instead of trying to work out all the details that come with ICOs.