As Initial Coin Offerings (ICOs) fight for attention and legitimacy, in a crowded arena increasingly tainted by a large number of alleged scams, solutions have emerged to provide remedy for the risky fundraising mechanism.
Such bad press and the real existence of malicious actors shows a need to address cases of ICO fraud, to stop scammers from hosting an ICO, raising funds from investors, and then disappearing.
Token sale solutions are a step in the right direction to giving space to legitimate ICOs and helping retail investors identify real from fake. But, beyond this, it allows startups to launch their token sale quickly and at a reduced cost, compared with building a platform from scratch.
What options are out there?
LEXIT, an online marketplace for established companies and startups alike to trade assets, intellectual property, and whole or parts of companies, has launched its own solution called LexICO.
It poses to allow startups to launch an ICO, Airdrop and Bounty campaigns with substantial discounts offered to those who pay using its native platform token, LXT, which hit the BitMart exchange on November 1st.
This token sale solution does not want the fruits of your fundraising efforts: no success fees are paid to LexICO and it offers functionality to customize an ICO to any token purchase limits, KYC requirements and special discounts. Essentially, it seeks to give startups a way to launch a token inexpensively and without the associated risk of contracting or coding to build their own.
Meanwhile Polymath is arguably one of the longest-standing token launch platforms and sees its specialty as lying with security tokens. All transactions on the platform must be conducted in POLY tokens, but this gains you access to a clean and simple UI/UX with KYC integration managed all for you on the backend by specialist providers.
Polymath is a very effective platform for launching security tokens, just a downside is that users can develop only that: ST20 tokens. It is a little pricier than the standard, too, but this is often the case with security token offerings.
A changing market adapts
With a less hospitable market for ICOs, the summer saw many startups fail to get any level of traction for their project. Going forward it will be useful for many to use a bespoke ICO launch service rather than invest in building their own token sale solution.
It could be a boon for the crypto space and allow these projects to focus on what really matters: delivering a working demo or product and showing investors that they have tangible results. This is what the markets are demanding now, and this is what will be likely to work in future.