Crowdfunding is the finest way to raise the funds quickly in an effective manner. Many startups and persons who are willing to start a business will prefer a crowdfunding platform. Because in that platform, they can get lots of new investors from various countries across the globe. The crowdfunding platform is one of the reasons why there are great stories behind many successful business class people. The one innovative and good idea will help them to raise millions of dollar investments globally.
According to recent surveys and reports, the average successful crowdfunding campaign is recorded to be $10M. Moreover, it takes an average of 2 weeks or more than 10 days to prepare for a successful crowdfunding campaign. In other words, Crowdfunding is the strategy that is an essential part for the small & medium enterprises to raise funds for projects. Fundraising is usually done by a massive set of investors across the world through the Internet. Currently, there are different methods in Crowdfunding Such as donation-based crowdfunding, reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, and crypto crowdfunding.
As many of us would be familiar with the term Blockchain and it is considered the most complex and innovative technology. Blockchain is becoming prominent and almost every major industry has transformed into a new level. But in recent years, it has been gathering major momentum in the area of fundraising. That is known as crypto crowdfunding. As of now, many people are raising their funds through the crypto crowdfunding platform. So startups and entrepreneurs are emerging to develop a secure and superfine crypto crowdfunding platform for business.
This article will help you with all you need to know about crypto crowdfunding platform development. Let us begin this innovative article with…
What is Crypto Crowdfunding Platform?
Crypto crowdfunding platform is the same as traditional crowdfunding. But instead of raising funds in fiat money, here the startups or companies will raise the funds using cryptocurrencies. In crypto crowdfunding, a startup will share an idea and a date for fundraising for that idea. In that crowdfunding campaign, the startup will release a white paper and other essential documents about the idea. Once the crowdfunding campaign begins, the startup accepts contributions from various crypto investors across the globe. If a funding threshold doesn’t meet their expectation to run a business. Then automatically the funds will return to the investors. If they got the funding above the threshold, then they can run their business with endless profits. Thus many startups and entrepreneurs are willing to develop their own crypto crowdfunding platform.
Else, you can also create a new crypto token in an existing blockchain to raise the funds through the crypto crowdfunding platform.
Now, let us see…
Types of Crypto Crowdfunding Platforms
In the world of cryptocurrency and blockchain, there are different types of the crypto crowdfunding platform. Here we list the three main types of crowdfunding platforms that are prevailing in the marketplace.
ICO (Initial Coin Offering)
ICO stands for initial coin offering and it is a popular crypto crowdfunding platform in the crypto space. ICO is also known as a sales platform for newly developed crypto tokens and those crypto tokens are generally hosted on a blockchain. By releasing a new token with elite features helps the people to raise the funds in this platform. During an ICO, people can buy tokens in the platform by exchanging any prominent cryptocurrencies like Bitcoin, Ethereum, litecoin, EOS, or whatever it can be. The main perk in ICO is, there is no intervention of the government or any other central authority.
In the ICO, anyone can visit the website and read the documentation behind their idea. If someone wants to support, they need to wait until for the token sales. Then, they can use any crypto in exchange for some number of tokens from the token generation event. Generally, the owner of the project can set minimum funding. If the minimum funding isn’t met, all investors will receive a refund on their contributions. In the crypto space, if anyone wants to start a blockchain project. They will first go with ICO and raise their funds. So people who are willing to launch an ICO will use premium ICO script software from the reputed ICO script provider in the industry.
IEO (Initial Exchange Offering)
IEO stands for Initial Exchange Offering and it is the popular crowdfunding module in the crypto sector. When ICO projects are prevailing in the market, but on the other side, IEO entered into the market as a new crypto crowdfunding platform for startups and entrepreneurs. Some experts in the crypto space say that IEO is the evolution of ICO. in general, IEO is far similar to ICO websites but has some significant differences. ICO websites can be created by any developer. But IEO is carried out through crypto exchange platforms.
IEO is also recognized as the secure token sale platform where all the newly launched token sales will take place. Here the startup’s white paper project will be completely checked and verified by the separate technical team of exchange to avoid fake IEO projects & crypto token scams. After the verification of your project, you can easily participate in IEO and you can raise the funds. But you need to pay a certain amount of fees for the admin and they will be responsible for promoting your project for token sales.
However, to participate in IEO, first, you need to create your own crypto token. For listing your token in the exchange you need to pay an additional amount. So both the exchange owners and the one who is launching the token will get benefited. Here there is no contribution to smart contracts. Instead, they have to create a KYC verified account in the exchange.
STO (Security Token Offering)
STO is the security token offering that is introduced into the crypto market to replace ICO websites. STO is also an ideal crypto crowdfunding or fundraising platform where the newly released security token sales will take place. In ICO’s and IEO’s, only the utility tokens will be taken place for the token generation event. But in STO, only the asset-backed security token will be sold to the distinct investors across the globe.
Generally, Security tokens are completely pegged with real-time assets like shares, commodities, real estate, or any other assets. So those security tokens will have the whole ownership information of the investor. All these crucial data and information are digitally recorded in the secure blockchain. But you need to create security tokens only by considering all the SEC rules and native government rules. Thus, the STO platform offers a high level of security to investors and reduces the risks of token issuers. If you want to launch a secure STO platform then you can use an ideal and bug-free STO script software. However, like ICO and IEO, you need to develop a security token to run an STO platform.
These are the essential types of crypto crowdfunding platforms that are more popular in the global market. Now, you may ask…
How to Create a Secure Crypto Crowdfunding Platform?
We know that crypto crowdfunding is the international fundraising model where millions of investors will support your idea. So building a crypto crowdfunding platform is one of the ideal business ideas for startups and entrepreneurs who want to make more income. Creating a secure and successful crypto crowdfunding platform is simple when you follow the below-mentioned steps.
1. Choose the type of Crypto Crowdfunding model
Choosing the type of fundraising model is more essential to develop a crypto crowdfunding platform. As we discussed previously there are three different types of platforms that you can kick start by creating a crypto token. Such as ICO, STO, and IEO. These three platforms have different functions and based on that they may vary. so choose the right platform that matches your business needs.
2. Have a perfect Idea & Identifying Competitors
Once you have chosen the type of platform, then you must determine the idea to initiate your crypto crowdfunding platform. The next thing you need to do is identify your competitors. Researching the crypto market is also an essential step. Look for the market and how it is currently with launching the crypto crowdfunding platform.
3. Drafting Whitepaper
Now, you need to draft the Whitepaper for your project. Whitepaper of the project speaks a lot and it is considered to be the most powerful tool for your business. Ensure that your Whitepaper consists of all the following essential details.
- Technical description of the project.
- In-depth Description of the team with their relevant expertise in technology.
- A detailed description of the first six months of your plans.
- Best-quality document with no more than 100 pages.
4. Challenging Team
It is always recommended to develop your crypto crowdfunding platform with a well-experienced team. Divide your crypto crowdfunding platform development team into distinct groups. This can help you to launch a successful crypto fundraising platform as well.
- C-Level Managers
- Developers and Managers
- Other Employees for Customer Support
5. Choose the Right Crypto Crowdfunding Development service provider
This is one of the essential steps you need to consider while creating a crypto fundraising platform. You need to pick the best and outstanding crypto crowdfunding development service provider in the global market. That helps you to launch the desired fundraising platform with ideal technical features.
6. Create your own Crypto token
You need to create your own crypto token to kick-start your project. Decide your idea, draft your whitepaper, and it is your time to create your crypto token. You will have many questions arising in your mind like what Blockchain to choose for crypto token creation?. You can create a crypto token on either Etherum or Tron blockchain. Because both are the best token development platform to raise the funds.
7. Market your Platform
Once your platform is deployed after creating your own crypto token, you can start promoting your platform. There are several channels to prove your product globally. You can also do marketing on social networks like Facebook, Twitter, and Bing will also be helpful. Through this, you can grab more investors and make your project successful. In addition to this, you need to focus on the best country to launch your crypto crowdfunding platform. Some crypto-friendly countries are listed below.
- The British Virgin Islands
- Cayman Islands
- Hong Kong and more
These are considered to be crypto fundraising platform friendly countries. So you don’t need to worry about the crypto regulations of these major countries. Because these countries follow all regulations that are approved by the government.
If you have done everything properly as mentioned, then you can develop a secure crypto crowdfunding platform. The only part that lies in your hand is, choose the best and top-notch crypto crowdfunding development service provider in the market. One such best service provider is Icoclone.
Why Should you Choose Icoclone For Cryptocurrency Crowdfunding Platform Development?
Icoclone is the ideal crypto crowdfunding platform development service provider in the crypto sector. Being a pioneer in the crypto field, we excel in all sorts of crypto crowdfunding services with impeccable outcomes. We are specialized in offering both the ICO script software and STO script with all the advanced technical features. Our ICO script and STO script are pre-designed website scripts that help you to launch your desired cryptocurrency crowdfunding platform instantly. Icoclone so far has helped many crypto startups and entrepreneurs to create their own crypto tokens to raise the funds. Along with the token, we also offer the feature-rich Crypto token wallet app for android and IOS at an affordable cost.
If you are a person looking to develop a secure cryptocurrency crowdfunding platform for business. Then Icoclone will be the best option.
Talk to our team experts and start to build your crypto crowdfunding platform now!