Crypto Fundraising Methods

By Author: Simone Liaa
Total Articles: 7
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Crowdfunding is the common procedure followed by many startups and entrepreneurs to raise funds and for initiating their businesses. Here, you can raise your required funds from many investors. In this traditional mode of crowdfunding (initial public offering), funds are raised by selling a part of the company’s shares.

On the other side, crypto crowdfunding is also a mode of fundraising where funds are raised with the help of crypto tokens. There are various types of crypto fundraising models prevailing in the crypto ecosystem like ICO, STO, IEO, IDO, IFO, etc. Among these methods, initial coin offering, security token offering, and initial exchange offering are more popular.

In this article, we shall discuss these methods in detail.

ICO (Initial coin offering)

Initial coin offering is the most popular crypto crowdfunding method followed by many startups for raising funds. In ICO, a token sale will be executed and funds will be raised accordingly. For running a token sale, you should create your own crypto token. The tokens used for ICO fundraising are known as utility tokens.

In ICO, ...
... there will be no third-party involvement or central authority intervention. Basically, an ICO can be developed in two ways like the development from scratch or using an ICO script. Developing an ICO from scratch is a complicated process so going with an ICO script will be an ideal process. If you wish to launch your own ICO, you can approach a reputed ICO script provider in the crypto ecosystem.

STO (Security token offering)

Security token offering is also an esteemed crypto crowdfunding method in the crypto ecosystem. It is an advanced and secure version of an ICO. STO can be launched only with the help of security tokens. Here, security tokens can be created only by backing real-world assets like bonds, real estate, leverages, etc.

Not only the backing assets, getting approval from the SEC is highly mandatory. It is not very easy to launch an STO, so getting professional guidance will be very useful for launching an STO. Do ground research and pick a renowned security token offering platform development company in the crypto space.

IEO (Initial exchange offering)

Initial exchange offering is also a famous crypto fundraising method followed by many startups and entrepreneurs for collecting funds. Here, the fundraising startup will create a crypto token and a whitepaper. IEO is similar to ICO, where the token sale will be executed by the exchange, and funds will be raised by them and then handed over to the startup.

In IEO, as the exchange runs the token sale, there will be central authorities involved. You have to register as a startup in an exchange, KYC will be verified and funds will be raised accordingly. It is also considered a secured crypto crowdfunding method. To launch an IEO, you can approach a first-class IEO development company in the crypto space.

All the above-mentioned are the popular Crypto Fundraising Methods (https://blog.cryptostars.is/a-brief-guide-on-successful-crypto-fundraising-methods-for-your-business-f6e47cfb7e26) followed by many people in the crypto space. To launch any of the crypto crowdfunding platforms, approach a renowned crypto fundraising platform development company in the crypto sector.