Why Market A New Innovation and Raise Funds Using An ICO?

Initial Coin Offerings (ICOs) have generated a lot of interest and attention in the business and mainstream media.

Some journalists and analysts are describing ICOs as the “new lifeblood” for startup entrepreneurs. Others aren’t as supportive. Whereas, the tech media, always one to support founders encourages companies to look at this route to raise capital.

Raising funds to support growth, however, is far from the only motivation.

Bloomberg compared two Thai payment (FinTech) entrepreneurs: Aung Kyaw Moe and Jun Hasegawa. Both are scaling similar and competing companies. Hasegawa raised $25 million in 6 months for his startup, OmiseGO, through an ICO. While Aung is going to slower route, raising $30 million through Venture Capital (VC) investors, with the hope of taking the company public (an IPO) in a few years. This demonstrates the financial dilemma founders and management teams face the world over, with $6.8 billion raised so far in 2017.

Similar to crowd-funding, ICOs require work, time, resources and a team to implement. No one, in such a competitive market, with so many startups trying to get their voices heard online, should attempt to raise without the resources and a dedicated team supporting the effort. So why go this route? Here are a few good reasons:

#1: A supportive community

Millions of people around the world are buying, selling and mining cryptocurrencies. It is an active, vibrant and exciting community of innovators, entrepreneurs and investors. Within this community is another, those who are interested in supporting companies that are raising an ICO.

We love being part of this, and we’ve seen the enthusiasm for our company/product, and many others, as we’ve attended various events around the world. Working in such a supportive community means many people share best practices, and we share and support others in the same way. As we’ve seen with us successfully reaching our original soft cap target (through the pre-sale), which shows that the community believes in our ecosystem and it has great potential to revolutionize the e-commerce reward loyalty market.

We are receiving even more demand for BIT tokens from the community and large investment funds, so we’ve opened a white-list to protect the interests of the ecosystem and the community as a whole, which is why we are only selling tokens to Whitelist participants at present. If you would like to participate in the BitRewards Whitelist token sale, please sign up here.

#2: ICO marketing supports ongoing marketing/sales

As we’ve seen when products launch using crowd-funding, once you have that momentum it generates enormous long-term benefits. If we were a brand new company — as many are — this would be even more important. Our five years building GIFTD means we are established enough to have some wonderful clients and show that our product is proven at solving problems for our clients.

Everything a company does in the early days is the foundations for future growth, so every article, social media post, video and press mention are building blocks in the post-ICO process of marketing the company and product. Which means that this ICO builds on our previous five years of growth; therefore, helping promote our product/service to a wider market and more potential e-commerce companies that we can work with.

#3: Creating a liquidity pool

In some cases, the tokens sold during an ICO support a core feature of a product/service that is going to be created as a result of the ICO.

Consequently, token sales create a liquidity pool that users and clients benefit from. Not only can tokens be bought and sold, or converted into other forms of cryptocurrency, such as Bitcoin, but this liquidity becomes its own utility, therefore creating ongoing value for members of the community.

This liquidity means that anyone who buys/sells tokens is playing an ongoing role in the growth of a company. As a result, startups that raise ICOs have an ongoing responsibility to the community and a commitment to deliver on the goals in an open and transparent way. Everyone benefits when raising funds through an ICO.

Find out more about BitRewards and our Token Launch at our site BitRewards.Network

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