During crowdfunding, blockchain projects can offer either their coins or tokens as part of their token generation event (TGE). While many people use the words “coins” and “tokens” interchangeably, it’s worth noting that they mean different things. The difference is in their development process. For instance, coins are based on their own native chain while tokens are based on another cryptocurrency’s blockchain.
Creating tokens and launching them in the marketplace occurs through an event known as ‘token generation.’ It’s important to understand this event in detail. After all, it provides insights on effective steps for cryptocurrency project crowdfunding. What’s more, having a crypto company that can provide marketing solutions for token sales saves both time and money.
What’s a token generation event?
Token generation events are perhaps the most thrilling use of blockchain tech nowadays. That said, a token generation event refers to an event designed for fundraising for a crypto project through issuing tokens to the public. To comply with the regulatory requirements among other issues, what we know as the ICO is now a token generation event. Thanks to this model, crypto startups can access funding support for their projects.
What are tokens?
Tokens are digital assets based on blockchain technology. Typically, they’re programmable, adaptable, and can represent a utility or an asset. Tokens are also tradable and can assume the structure of various items. These include gaming avatars, loyalty points, and art, among others. To generate tokens, you’ll need the help of a smart contract.
Tokens and coins share some similarities, especially when it comes to properties. Even so, they have exclusive differences. For example, Tokens rely on a smart contract that allows them to be more programmable and practical than coins.
Furthermore, tokens come with a purpose and a function for both the company and the owner respectively. It also has unique features that relate to its ownership. For instance, you can leverage tokens to enhance engagement within the company. By using a token, you can obtain voting rights in a crypto project. The most common use case of all is the use of tokens to raise funding for a project.
As such, there’re tons of roles that tokens can play. Just to list a few, they include:
- Accessing premium services
- Currency use
- Exchanging value
- Voting rights
- Distribution earnings
What are coins?
Like tokens, coins are a form of crypto investment. Unfortunately, the value depends on a highly volatile and unregulated market. At the basic level, the main purpose of coins is the storage of values, especially if they relate to certain companies. The most popular example of a coin is Bitcoin.
ICO vs. TGE, does it matter?
There are close ties between ICOs and TGE, especially since a TGE is a derivative of an ICO. When choosing the better of the two, this all depends on your company objective. A crypto project can leverage any of the two to attain similar results.
An easier way to differentiate the two is how they run their services. For example, token generation services are based on Ethereum blockchain. On the other hand, coin generation services are based on Bitcoin blockchain.
Even though they serve the same role, which is crowdfunding, companies are still careful when choosing one over the other. This is mainly due to fears of regulation and fines that accompany both services.
Steps to launching a token generation event
1. Product development
Oftentimes, crypto startups, individuals, and companies overlook the product development phase of token generation. If you follow suit, you’ll be in for a surprise – and not a good one. You actually need to pay more attention to this step. In fact, you should first design a product for your crypto token before moving forward. If you’ve got no knowledge about this stage, you can contact crypto advisors. They’ll help you create a product based on blockchain for your token.
2. Token creation
When your blockchain product is ready, it’s time to move on to the following step – token creation. In this stage, the target is designing a token based on the Ether blockchain. It should portray the product your company needs. When you use the Ethereum ecosystem to build your token, you have several forms of tokens to work with. The common ones are game avatars, coins, and gold certificates, among others. Additionally, the basic features of your token should support clients’ agreement and Ethereum storage with the same protocol.
3. Legal opinion counts
Crypto space regulations are still in the infancy stage. Moreover, these regulations vary across the world. Therefore, getting a legal opinion on your project is essential. Remember, token offering involves the use of fiat money. Therefore, being on the legal side of the law is always the best bet, especially when you’re handling people’s money.
Assuming you’re planning to run token sales without going against any regulation., you’ll need legal advice. With the expertise of a lawyer, you’ll be able to tell when your product is in line with SEC regulations. You’ll also know when you’re on the wrong side of the law. With the right legal expertise, you can ensure your project always complies with crypto regulations.
When getting a lawyer, it’s important to consider their level of competency. In this case, you need a lawyer who understands the crypto space well. They should have at least a basic knowledge of the blockchain industry. A lawyer with knowledge of crypto space can provide you with risk parameters. They’ll help you minimize the risks that your project is about to face. You should also make sure you choose a government with clear boundaries in the crypto space and fast-forward intellect.
4. Develop a whitepaper
When it comes to token marketing, a whitepaper plays a crucial role, especially when you’re reaching out to investors. A good whitepaper clearly defines the problems in this industry or market. Thereafter, it should explain how your blockchain project will resolve that problem. The key contents of this document include the percentage of token distribution, roadmap, team, and project objectives.
When developing the whitepaper, use accessible and clear language that your target clients will understand. You can also include a visual presentation to highlight your strategies and back up your points. On that note, here is a list of points to consider in your whitepaper:
- Your company’s partners
- Token distribution info
- Your team and their achievements
- Capitalization. Ensure you provide this information in detail, highlighting the amount of funding this project needs.
5. Build a community
You can enjoy higher token sales if you’ve got a relevant community to back you. Besides generating hype, the community is also handy during project marketing. Speaking of marketing, Discord is among the best platforms to reach crypto enthusiasts on. On this platform, you can build a robust crypto community for your project. Other reliable platforms include Twitter, Telegram, and Slack.
After establishing your community, the next important phase is engaging them. An idle community is bound to lose its members. That’s the last thing you want to experience after investing significant resources in establishing it. To manage the community, consider the following tactics:
Listen: Your community is bound to comment on or provide feedback about your project. While positive feedback is music to the ears, you should expect constructive criticism as well. Find ways to leverage this negative feedback to solve any problems before you lose supportive community members.
PR plan: This is the part where you open up to the community about your project. To keep them engaged, post relevant content regularly. You can post videos and even organize AMA sessions.
Community management: You may want to cut costs by having a small workforce. However, community management isn’t a simple task. Depending on the tasks you have at hand, you can get overwhelmed from running the community. There’s also the issue of experience. You need professionals with knowledge and experience in community management.
6. Listing on exchanges
Is your token generation event ready? Well, you can attain maximum leads by reaching out to various exchanges and getting them listed. Your tokens should also be tradable on specific exchanges. But generally, you can gain more if you list the tokens on established exchanges.
Running token generation
a) Email marketing
With the help of email marketing, you can target specific crypto enthusiasts or investors with personalized content. Don’t limit yourself to a few individuals. If you can access a list with emails of potential clients, take advantage of that. Many people find email to be a credible source of information. Therefore, they’re more likely to engage with you via email.
With that said, email marketing is only possible when you have access to a list of relevant email addresses. You can build an email list for your project, but this may take a significant amount of time. Alternatively, you can seek assistance from PR firms like Pressfarm and get all the data you need. It’s time-saving, and the pieces of information you get are resourceful and reliable.
As a PR firm focused on startups, the experts at Pressfarm help build your PR campaign by creating a media list for you and working with you to craft content that is sure to bring in replies from your target journalists. With a professional press release, some compelling guest posts, and a creative media kit, you can make a journalist’s head turn.
b) Press release
The power of a press release in marketing your token is immense. It’s also one of the best marketing strategies in this industry. By breaking down the main sections of your white paper, you can develop several press releases. Thereafter, publish your press releases in as many crypto communities as you can.
You can also explore various platforms with potential to host crypto enthusiasts and investors and publish your release there. When your release reaches an interested audience, you’ll begin experiencing more traffic to your project site.
c) Website development
Every project needs a website. Through the site, you can create a positive first impression that will compel the visitors to buy your tokens. If you want to experience a positive outcome, professional help will come in handy. You need a web developer to design a site that will capture and retain the attention of crypto audiences.
The type of content you share via this site is also very important. For starters, the posts must be relevant to your project or token generation event. You also need to make sure you’re producing content that is relevant and valuable in the blockchain industry.
On the platform, remember to include an “About Us” page. This will be useful to audiences who want to learn more about your crypto project as well as the team behind it. Make sure you include a “Contact Us” section for clients who want to reach out to you. Some of them may have questions or want to learn the process of acquiring your tokens.
To direct traffic to this site, you can leverage the whitepaper. Create a download link for the project whitepaper that leads to this site. It will be a great lead magnet and a good way to collect clients’ contacts such as phone numbers and email addresses.
d) Social media marketing
The token generation campaign is only complete after you reach out to clients on various social media channels. On these social channels, you can find established communities in your niche. Besides running social media marketing on various channels, it’s also important to establish your brand’s presence there.
You can simply start with a business account on several social channels with crypto audiences. Thereafter, you can build forums for your project. With time, you’ll have an established community backing your project.
By launching a token generation event, you can ensure that news about your crypto project reaches your target market. While it sounds so easy, the burden is in the process. With this guide, you can get some insight into what it takes to launch a token generation event.
Is there a similarity between a TGE and an ICO?
Yes, these two models serve the same purpose for crypto business, and that’s fundraising. However, the fear of regulation consequences influences many companies to brand their crowdfunding campaign as token generation events. Crypto startups use both versions of this crowdfunding model as a primary means of raising capital for their product. Most token generation campaigns are geared towards fundraising for companies through the utility industry.