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Crypto-tokens are digital tokens which are launched by a company, usually a startup or entrepreneur, as a way to raise funds for their new project.
Besides starting your own ICO sale, you, as an entrepreneur, has another very important use of cryptocurrencies.
Wondering what?
As an investor, you can use cryptocurrencies as a token of value for your futuristic or upcoming project. As you may already be aware of, digital tokens are launched with a specific purpose.
For instance, startups looking to raise funds through ICO can launch and use digital tokens to reward their investors. As an entrepreneur, you can benefit from cryptocurrencies in a number of ways.
For investment
Entrepreneurs looking for a nice asset to invest in have a wonderful opportunity in the form of cryptocurrencies. When backed by a good and realistic project, crypto-tokens can immensely benefit their holders as the price can increase rapidly in just a few months.
For example, Pieta is a token backed by a solar-based mining system which intends to provide access to a cost-effective and eco-friendly method of crypto mining. It has great potential to succeed and give huge returns to investors.
For funding of their startup
Investors looking for a reliable way of fundraising for their new company can launch and sell their tokens through an ICO (initial coin offering). People invest in an ICO with the hope to get huge returns in the future once the product is developed and launched.
Incentives to stakeholders
Startups and entrepreneurs can also use their cryptocurrencies to incentivize their stakeholders and investors in terms of regular rewards, bonuses, and other incentives.
For payments & rewards
For instance, an advertising startup can use their tokens to send payments to the platform users (advertisers, publishers, etc.) & contributors as well as to reward them for their contribution towards the growth of the ecosystem.
However,
Entrepreneurs must also keep a very important thing in mind. Before launching their token, they must ask themselves, “does my project actually need a blockchain or token?”
If your product has no relation whatsoever with blockchain technology, it is not wise to use token or blockchain just as a way to secure funding. Because potential investors will see that and may avoid investing in your project if it doesn’t actually have anything to do with blockchain.
Another thing to keep in mind is that once you’ve made sure that your project or business will actually benefit by adding a token, you should commit that the said token will be the only medium of exchange within the ecosystem. This is to ensure that the token has actual applications in order to create good value/demand in the market.
Convinced yet? Looking for a good cryptocurrency to invest in? Check out Pieta Network. The ICO sale of Pieta token with up to 100% bonus is ongoing now.