New business ideas emerge every day, and ever more people compete in tenders to raise funds to finance their startups and give these a push. However, investors are led by their personal preferences and put up their capital in the business ideas which are the most perspective and the most trustful from their point of view. But, what if investors turn your project down and you are still sure that public will love your idea and your product or service will make a hit for certain audience? Probably, the best solution is token sale crowdfunding – a new means to raise funds for new projects based on much-hyped blockchain technology.
What are ICO and token sale?
ICO stands for initial coin offering, which is a digital tool for startup projects fundraising. The concept takes after the initial public offering, but in this case, an investor gets a coin that represents some sort of value instead of shares, like in IPO.
ICO is often used to describe token sale or token sale processes, while this is the term related only to cryptocurrency fundraising. When you offer some service or product, the process will be called a token sale. However, this is a separate topic for discussion; in this article, we’ll talk about the app for blockchain-based fundraising, so that information below will suit both ICOs and token sale.
So, if you have a project that needs funding, it’s a great time to launch a web and mobile app for ICO or token sale to attract some investors.
Token Sale App Logic
Let’s start exploring the fundraising process from the business logic of the app. We’ll take the example of token sale, although you can apply the similar scheme to the ICO launch.
As far as tokens are concerned, we would outline three most popular categories of tokens on the market:
- Tokens that represent some physical assets, which can be used as a consumable product (for example, one token will stand for one mobile device you are going to offer).
- Tokens that represent some discounts or special price offer for some product or service you provide.
- Tokens that represent a unique access to some licenses or tickets to some private function or party.
Once you decided what type of tokens you want to launch, it’s time to initialize crowdsale smart contract. Look at the algorithm you will go through when you start your token sale: