Can small businesses get a slice of the crypto cake?
We believe that they can.
Token Sales and Initial Coin Offerings provide unprecedented access to the world of crypto finance. This phenomenon has resulted in huge market capitalization in just a few years. In 2017, Token Offering funding into start-ups has already surpassed Venture Capital funding with more than $3B worth of investments against the VC’s $500M in the same year.
Moreover, less than 1% of start-ups seeking traditional funding get capitals from angel investors and just 0.05% receive venture capital funding. When it comes to Token Sales, percentage skyrocket since 25% of startups meet their funding goals. (source Forbes.com)
Even if access to the Blockchain world has been facilitated by Blockchain Crowdfunding Platforms such as TokenRaise, launching your token sale is still a large investment in terms of Marketing, since technology alone might not attract investors. Excluding the technology part, which can be easily realized with Tokenraise at a fraction of the real cost for hiring developers, conducting a Token offering may easily cost from $ 500K to $ 1M.
However, since the Blockchain world is being built as we speak, through a process of trying and experimenting, there is definitely still room for your ideas and projects.
So, how can smaller player enter into the crypto-space?
First and foremost, create your token! ERC20 is the most used token standard, built on the Ethereum Blockchain. Most of the token sales running now or in the past used the ERC20 standard.
Noku Custom Token service is designed for all those who don’t possess coding skills and have no idea of the syntax required to create an ERC20 function: in fact, the most unmistakable benefit of the Custom Token interface is the possibility of releasing a token simply deciding its name, logo and few other info.
For every ERC20 token created, you choose the following characteristics:
Ticker (ex. “Ethereum”) and ticker (ex. “ETH”)
Name
Logo
Total supply, limited or unlimited (ex. 100,000,000 tokens)
Mintable and burnable, or not. (increase or decrease your supply)
Creating a token might be the best way to get a little practice and issuing a token for your business.
Raise your game
We have said already that tokens can represent basically any asset:
- An hours worth of your work
- A promise for a product in a Token Sale
- A future download of a movie from your favorite director
- A ticket to a concert
One of the best examples for a token model is the discount token, which is a better version of something we already use in our everyday life. To mention some “discount token” examples from the physical world, we are quite familiar with collecting points at a shop. Owning shop points allows me to purchase other products at a discounted price. Another analogy is the Spotify premium membership. Being a Premium member grants the user unlimited listening of Spotify’s playlist and artists.
A discount token is a good model since it’s already proven and can be used for engagement and gamification purposes. Moreover, data shows that nearly two-thirds of millennials have reported an interest in getting rewards not just for purchases but also for engagement with brands. Companies can use gamification marketing to drive engagement, which is the key to loyalty. (Source forbes.com)
Custom tokens could be integrated into a pre-existing loyalty program that compensates customers for leaving reviews, making referrals or purchasing frequently specific items. There is really no limit for Custom tokens use-cases and every business might have a very different framework and approach. What worked successfully for one company may not necessarily work for you and vice versa.
To start creating your first token, remember that you can take advantage of the free token ERC20 creation on TokenRaise and ask for Token Model design support to our Blockchain management team.
Once you have a fairly strong idea of what to do with your tokens, think about a good distribution method and see what gets the attention of your existing customers. In short, think about creating a need for your tokens and the market will take care of the value. In other words: observe, research and experiment.
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