Why it is beneficial for ICO to accept FIAT?
It’s not a secret that the ICO made a significant breakthrough and a boom in the financial area and became the №1 method for raising funds. Both terms of speed and volume. An experienced investor likely notice that many ICO projects launched only accept crypto-currencies and anyone who has bought and sold crypto or used it to make acquisitions knows that it is not without its inefficiencies. Purchasing, storing, transferring, and spending digital currency can be a hassle. While this might seem insignificant to an early adopter, it would likely be a deal breaker for those with less confidence in the platform.
However, more and more ICOs see a potential of accepting FIAT currency to raise funds. Therefore, they have integrated fiat based payment gateways to boost target audience and restore confidence in certain investors, as there are those in the community who are interested in certain crypto projects and would find it convenient to subscribe through fiat based payment gateways.
Describing FIAT currency
FIAT currency is any money declared by a government of every country, which we use in everyday life to cover our expenses: USD, euros, pounds — you can easily perform transactions or payments using any currency, and they are regulated by the banking system of the country, guaranteeing an exact level of security.
Benefits of accepting FIAT
The majority of ICO web pages have not integrated FIAT payments. That means — no possibility to get people who are not yet “in crypto” to support the ICO. However, due to the high volatility in exchange values of cryptocurrencies, it has become pertinent for some crowdfunding to peg their crowdsales to FIAT based values. The unpredictability of price index makes it quite inconvenient to use cryptocurrencies in most token sales events as crypto-enthusiasts are troubled by the volatility in the price index of coins. Therefore, approximately 15%-20% of current ICOs use FIAT for contributions, as it helps to attract more potential investors.
To be able to accept FIAT currency without opening a bank account ICOs use intermediaries’ services. For example, TokenDesk — direct token marketplace — identified it as one of the most promising opportunity and now they offer such service called “FIAT Button Integration”. This solution is designed with the aim to assist ICO publishers and improve their ICO execution process by enabling FIAT currency payments through Visa/MasterCard or SEPA.
TokenDesk “FIAT Button Integration” process
It is displayed below what steps ICO publisher needs to go through to be able to accept FIAT currency for its ICO tokens. Also, visually explained collaboration process shows how TokenDesk will take care of FIAT processing. The integration of FIAT Button takes about 24 hours and it is easy and simple to use.
If you’ re an ICO publisher and this solution is what you need to kickstart your ICO — contact TokenDesk team.