An ICO token sale script is a piece of software developed on blockchain for the purpose of enabling a seamless & instant exchange of assets. It consists of a smart contract programmed to automatically execute orders on a blockchain network via a predetermined set of rules.
As tokenization gains more traction, ICOs/STOs/IDOs have proven to be a highly effective fundraising method. New projects are increasingly leaning towards the use of token presales in order to raise funds, bypassing hurdles they’re faced with when going through traditional fundraising channels.
To run your token sale, an ICO token sale script needs to be developed in order to exchange assets offered with investments received; but what does that actually mean?
Usually, when a company raises funds through a private or public offering, shares are being sold in exchange for cash. This process is undertaken through the use of multiple intermediaries safekeeping & managing the assets, guaranteeing trust between the parties involved in the transaction.
Token offerings such as Initial Coin Offerings (ICOs), tackle exactly this investment process by leveraging blockchain technology as a medium of exchange and trust between participants. Learn more about the advantages of tokenized securities.
The advantages of Tokenization:
- Instant Delivery vs Payment at t+0 with no counterparty risk
- Simpler custody without CSD and easy global transferability
- Higher secondary liquidity at smaller denominations
- Improved efficiency from DLT processes helps asset managers and asset owners fight the margin pressure by reducing costs
- Tokenized assets may carry lower illiquidity premia allowing for the asset to trade closer to its fair value
The benefits that tokenization brings to the table are clear, processes are drastically improved for a significantly lower cost. Utilizing blockchain tokenization therefore cuts down on time to market and costs.
On the other hand, what could prove time consuming and costly, is the knowledge and technical capabilities to be acquired for effortlessly creating and conducting fundraising through tokenization.
That’s why it is recommended for organizations or individuals that are looking to tokenize their project and raise funds accordingly, to use “off the shelf”, ready to use tokenization products.
Why buy a ready to use ICO Token Sale Scripts?
To launch your own ICO, you will need to develop an ICO token sale script which can prove to be technically challenging. If you’re an organization looking to raise funds, spending time and resources on figuring out the ins and outs of how to launch an ICO using blockchain might not be the most efficient approach to start your crowdfunding campaign. Especially when ICOs are here to streamline and make such processes more efficient and easily accessible.
Multiple components will be required to successfully launch your token offering and not many tools are available in the market catering to this specific need.
As organizations, more specifically larger institutions, lack the knowledge to efficiently develop such solutions, the unavailability for such tooling to easily run ICOs, STOs and/or IDOs becomes potentially detrimental for organizations to keep up with the pace of the market, which could hinder their survival.
Having a product that offers these basic features, will help you achieve your goals when fundraising through token sales. As an organization, you might require extra features or products to help achieve the necessary compliance.
Token Tool by Bitbond – Your all-in-one toolbox for institutional-grade token sale scripts
At Bitbond, we bring solutions to make the process of creating and launching an ICO as seamless as possible. As a specialized tokenization software provider, we have identified the lack of viable and easily accessible products for people looking to launch their ICO project.
Using Token Tool by Bitbond, users can easily create and launch an ICO by simply interacting with our Dapp via the supported Web3 wallets. It consists of an ICO token sale script developed based on years of experience providing bank-grade tokenization solutions to renowned financial institutions.
In addition to enabling users with seamless token creation and offering them via token sales, Token Tool is integrated with top notch custody solutions streamlining administrative processes related to compliance.
You can use Token Tool stand-alone if you manage orders, investors, payments and custody on your own. Alternatively, you can use Token Tool in combination with the Offering Manager for larger token offerings with many investors.
Token interactions such as token buring, token minting, address blacklisting, address whitelisting, token clawbacks etc. that are the result of corporate actions can also be managed via Token Tool.
Creating token presale as a financial institution
An Offering generally describes the issuance or sale of a financial asset by an issuer. During the Offering, Investors submit Orders, thereby determining the investment amount they would like to commit to the respective issuance.
In the Offering Manager, an Offering comprises the packaging around an asset, defining the terms on which the asset is made available to investors.
Financial institutions or issuers looking into utilizing Token Tool for creating token presales may require additional features for dedicated corporate actions such as:
- Order handling & investor management
- Know-Your-Customer (KYC)
- Payments & Custody
With Bitbond’s Offering Manager, issuers can:
- Create new token offerings
- Maintain an overview of token offerings that they have previously set up and conducted, or that are ongoing
- Manage ongoing and completed token offerings via the Asset, Orders and Token tabs of an offering
- Manage investors, review their KYC status and their orders
- Manage order books and reconcile investment-related payments from investors
- Trigger token minting and distribution to investors on the Stellar protocol
- Prepare distribution of tokens on EVM chains (distribution via Token Tool)
- Schedule, manage and review snapshots of the list of investors holding your tokens (Token Registrar)
- Calculate and prepare payments to investors (e.g. dividends or coupons) for payout via bank transfer or stable coin payment
Both the Token Tool and Offering Manager can be integrated into each other via API.
Investor onboarding and order subscription
To receive investments from investors, you will need to set up a user interface enabling potential investors to easily subscribe their orders for your token offering.
Token Tool has a built-in feature that enables users to embed their offering via a so-called iFrame, which is basically composed of an HTML code that can be added to your website’s code. This then displays a modal on the website where users can connect with their wallets in order to submit investments and later on claim their tokens once the issuance takes place.
For organizations, a more sophisticated onboarding solution might be required in order to accept investments.
At Bitbond, we offer issuers the possibility to use our Investor UI, which is a white-labeled frontend application which you can use with your own branding. Its primary purpose is investor on-boarding and order submission for a token offering as well as an integrated investor wallet functionality.
The Investor UI provides a frontend that normally starts at the registration step. Other public pages such as homepage, terms and conditions, pages that inform about investment projects. etc are created and managed by the issuer.
Bitbond – Your full-stack tokenization tech partner
The Bitbond Asset Tokenization Suite is a set of software components with which you can onboard investors, conduct token offerings and create and manage tokens.
The Suite consists of three components we described above:
- Offering Manager: For investor and order management.
- Token Tool: Publicly available Web3 tool, enabling users to easily create, manage, & distribute tokens.
- Investor UI: The Investor UI is a white-labeled frontend application which you can use with your own branding. Its primary purpose is investor on-boarding and order submission for a token offering as well as an integrated investor wallet functionality.
You can find more details about the Asset Tokenization Suite in our product documentation.