Initial Coin Offerings (ICOs) are gradually becoming an industry. As with most growing industries, you can tell it has matured as new providers spring up with specialized services. One of these specialized services is a tokenization platform — probably one of the most important services for a token sale.
What is a Tokenization Platform?
A tokenization platform connects empowered investors with disruptive and verified blockchain companies via a secured and scalable ICO platform. Only a few platforms like Tokeny actively verify projects.
With a tokenization platform, you will be supported from the issuance of your token to onboarding of contributors and the on-going management post-sale.
One of the most critical aspects of a tokenization platform is the dashboard where contributors can be managed along with a system that makes it easy to communicate with contributors about everything from dividends to buybacks.
The Benefits of a Tokenization Platform.
1. Tokenize Your Assets Easily.
The right tokenization platform creates the opportunity to tokenize your services, fund or assets with ease. A platform that handles the sale of your token frees you from many of the technical challenges that go into the sale and management of tokens pre and post-sale. What you want to look out for is the ability of the tokenization platform to manage every aspect of your project, including bank-grade KYC compliance to post-sales management. KYC compliance protects your project and your investors. Often required by banks and regulators to verify your contributor’s identity and residency, using a tokenization platform can help you with the review process which frees up valuable time that could have been spent verifying documents for thousands of contributors.
2. Sale And Issuance.
The issuance of new Security or Utility tokens can be easily managed on a tokenization platform. A successful token sales could end up receiving thousands of contributions in the form of fractions of thousands of ETH. The more success you expect to see in your project, the higher the need for a professional tokenization platform that can automate the process. A highly secure and scalable platform will ensure a seamless process from token issuance to the onboarding of contributors. With a complete suite of technical tools, a white label website for contributors and corresponding smart contracts, your Startup will find it easy to automate the fundraising and token creation process.
3. Compliance And Regulation.
While ICOs provides a great medium for Startup financing where funds can be raised in exchange for issued tokens, it also provides a platform for scammers who take advantage of the system. With the advent of ICO scams, the regulatory environment for token sales will only get more intense going forward.
For a successful token sale offering, a trusted tokenization platform that ensures your Startup is compliant to the standards of an ethical and transparent market will be required. The SEC uses a set of regulations known as the Howey Test to determine if an offering is tradable or not. New compliance mandates are being released on a regular basis which present obstacles for conducting compliant token sales.
For investors who want to invest in token sales, there is a greater need to verify the trustworthiness of a token sale and whether or not the project meets a fair and ethical standard. This is where the Sustainable ICO Protocol (SICOP) becomes essential. SICOP is a certification methodology for complaint ICOs.
Initially developed by Tokeny, SICOP which involves a list of business, tech and legal framework from the last decade of good practices for IPOs is used to verify whether a project meets the standards of an ethical, fair and transparent market or not.
Tokeny uses SICOP to identify ICOs that are secure for investments.
Learn more about the Sustainable ICO Protocol (SICOP) and apply to be compliant.