“Crowdfunding” has gained quite a bit of momentum with the arrival and popularization of cryptocurrencies and blockchain technology. Hundreds of companies in the blockchain space have raised billions of dollars using crowdfunding in the last year and a half. In the simplest terms, crowdfunding means collecting funds for a business from the crowd, the general public. members of the crowd contribute small amounts so as not too much of a burden on anyone. Pooled together, it can become a reasonably large sum for the business.
Crowdfunding may be donation-based (participants expect nothing in return for their donations), reward-based (some rewards are expected in return for contribution), or equity-based (ventures offer a share in the business equity against contribution). There are certain conditions that have to be met in order to invest in a reward-based or equity-based crowdfunding campaign, and for the exchange of value to take place in a fair manner for all the parties involved.
Blockchain offers a perfectly automated platform that is ideal for crowdfunding, as smart contracts can be formulated with pre-defined conditions for the contributors as well as those seeking contribution. These contracts can be executed to issue either rewards or proof of equity to those who contribute to a venture.
Cryptocurrency combined with blockchain technology can actually be a great channel to connect those who have small amount of spare money and want to invest it but don’t want to deal with the complexities that come with investing in a business, with those who have some fantastic business ideas but don’t have enough money to fund those ideas.
Since more than half the population of the world has an internet connection, billions of people are connected and know about things happening all around the globe in real time. It is well known that small and medium businesses all around the world need more funds. Crowdfunding as a source of business funding is becoming increasingly popular and with the help of social media, it is easier than ever to circulate innovative ideas and attract investors. And since cryptocurrency is literally borderless, your business idea can get funded by people from any part of the world, provided there is mutual trust and consent. Trust comes embedded with blockchain, since no one can hack or freeze your crypto wallet or steal your crypto identity.
If you have an awesome business idea, or own a small startup that you want to expand, you can make use of blockchain technology to fund your business by creating digital tokens on a blockchain that allow you to pre-sell your products/services or grant equity in the business to the buyers of these tokens. Popular as ICO or Initial Coin Offering, the mechanism of raising funds with the help of crypto tokens on blockchain allows entrepreneurs to connect with resources that are secure and give them the much needed financial muscle, minus the inefficiency of traditional financial institutions. These crypto tokens can be purchased against cryptocurrencies, and can be traded on cryptocurrency exchanges. So in essence, an ICO is as good as shares and securities that the traditional stock market deals in.
An ICO is the way for entrepreneurs to leverage blockchain technology to gain access to resources freely, without involving a third party, along with additional benefits of security and flexibility. There is some regulatory compliance involved and technical expertise required for this purpose, but you don’t have to worry at all, since Tokenlab is here to help you! You need not be a developer or a blockchain expert who is experienced in building ICOs or coding smart contracts. With Tokenlab’s safe and easy platform, all it takes is a few clicks to start a fundraising campaign for your business idea. You can even keep track of the performance of your campaign and helps you gauge public engagement.
With Tokenlab users can start a new campaign by keying in some simple information like start and end date of the campaign, target amount that they intend to raise, and price of the tokens offered. The number of tokens will depend on the price of the token and the target amount. You can run staggered campaigns, like a pre-sale and then token sale, and once your campaign is successfully completed, you can issue tokens to those who have contributed to your venture.
Tokenlab has its own ERC644 token, LAB, which is the underlying token or standard token for all transactions. It is transferable and you need to burn some LAB tokens to create your own token for your campaign. Tokenlab is a utility exclusively meant to make the ICO creation process simple, safe and secure for entrepreneurs. It allows users to create assets on the Expanse blockchain platform.
Tokenlab is here to revolutionize the way business is done and to bring true democracy in equity investment, making it simple for entrepreneurs to raise funds for their business while also allowing them to create their own tokens, having complete control of their venture.
Create your own tokens and crowdfund your ideas with Tokenlab
