A lot of things have happened to the digital currencies community in the past year. The price of Bitcoin and Ethereum skyrocketed, SegWit has been locked-in, and what’s perhaps most significant — a phenomenon of ICOs or token sale emerged. When it comes to ICOs, they aren’t a new thing, and it wasn’t so long ago when Ethereum, MasterCoin, and other crowd sales of pre-mined coins burst onto the scene.
However, this new generation of token sales is something different. Most of them utilise the Ethereum network, and are incredibly easy to develop and sell. We’ve seen projects at the stage of only being a bare idea raising millions of dollars and creating multimillion dollar industries. Not only that, but new types of intermediaries also emerged — escrow agents, ICO studios, ICO bookrunners, ICO listing websites, and ranking agencies. It may sound like hysteria, but it’s not.
This market development can help established teams and companies raise more funds directly from the community. If a company has the right product and support from the community, the process of raising funds through an ICO has become more efficient than usual venture capital funds — faster and at lower cost.
We believe that now is the perfect time for us to bring Cryptopay to another level. Most of our planned products require a lot of funding in order to meet capital requirements, and at the same time, we must maintain working capital. In our case, an ICO is a perfect scenario to raise funds — you not only gain capital but also get immediate feedback from potential clients. At last, we can release products that people want and will use without spending more than a year on fundraising.