The ICO space is rapidly growing, with more companies finding many benefits of using ICO for project funding. Rather than spending time with the traditional methods of getting capital through VC and Angel investment rounds, the ICO space is appealing to quite a few companies with the ability of raising capital for their product or service very rapidly.
As mentioned in our article “Using Reward CrowdFunding for Pre-Sale or Regular ICO“, there are different ways that CrowdFunding campaigns can help with ICO projects. Although ICO’s are expensive to run (due to legal, marketing and other costs), you can use the CrowdFunding method to help pay the upfront costs for an ICO. Welcome to convergence point, where we bridge CrowdFunding to ICO.
Traditionally for ICO you could spend anywhere around $50K+ on expenses. The end result, however, can be rewarding. Some companies seeking funding through ICO avenues or sources are already generating significant revenue, allowing them to pay for such expenses. If this is true, then how can you create a CrowdFunding campaign to bootstrap your ICO without a big upfront investment?
By using a rewards-based CrowdFunding campaign we can entice the potential backers to donate to your project. As part of the package you can sell exclusive access to ICO event where the backers get unique bonuses and other perks. That is the idea of using CrowdFunding campaign to bridge ICO. If you are considering to run one of these types of campaigns, what technology would be best to use, and what type of ICO’s are best for this scenario?
CrowdFunding and ICO technology stack
There are several blockchains currently that can be used to create a smart contract and deploy/issue a token for the ICO. Each blockchain has its own separate and unique advantages when it comes to performance, transaction fees and so on. The problem is bringing this technology so someone who is non-technical can still make use of it to raise funds for their business.
At Thrinacia, we have decided we wanted to explore this market segment. We will soon release products that will bridge the gap between CrowdFunding and ICO campaigns so companies will be able to seamlessly transition from CrowdFunding campaign to the ICO based one. By offering this technology stack we will make it easier for campaign creators to move from regular CrowdFunding campaigns to ICO campaigns and provide them with necessary tools to make the process more streamlined. Furthermore we will allow portal operators to offer this same process on their white-label platform websites and we will have ability to use various external compliance API’s.
You can learn more about our new products and developments by following our blog and twitter feed for news announcements. Thrinacia intends to introduce unique technologies to help startups and entrepreneurs reach their fundraising goals in a more efficient and faster way.