How does creating ERC20 token helps in crowdfunding?
Crowdfunding was first done in the 18th-century by Pope Alexander. He introduced this method as the "subscription method" to raise sufficient funds and launch his paper works. Since then, many types of crowdfunding have been invented, and some were successful. But it was the case for all. Most of the crowdfunding methods have ended up in scams. This raised questions among the investors on the security of their shares.
It was the year2014 when ICO, a crypto crowdfunding method, was introduced. It wasn't much popular in those days. But, in the year 2017, ICO mesmerized both investors and entrepreneurs by raising $252 million. Since then, ICO has become the most widely used crowdfunding method. But, the efficiency of ICO is determined by the crypto tokens that you provide as equity shares to the investors. These tokens are digital assets and are stored in crypto wallets. They can be created in different standards from different blockchain platforms. There are many factors to look into while creating crypto tokens.
- The blockchain platform where you create your token. The trust and popularity of the particular blockchain platform help in attracting more investors.
- The popularity of the token standards will be the second factor. You will help you in attracting more investors if they know what they are up to.
These two are the major factors to be noted before creating a token. And if you want to create one with these features, you will have to go with ERC20 tokens. ERC20 is the token standard of the Ethereum blockchain. It is the most popular blockchain in the crypto space. And to add some more spice, the ERC20 token is the most common token standard in the marketplace. ERC20 accumulates 70% of the total tokens in use. So it will be easier to find and attract more investors towards you.
Now that you know creating ERC20 tokens will be beneficial. But where will you create them? As a matter of fact, creating ERC20 tokens are quite simple, except for the smart contract implementation. For this, you will require an expert's assistance. It is recommended to find an ERC20 token development company where you can fill in your requirements for them. There are many such companies out there to provide you with token development services. But only a handful of companies are trustable. So it is important to do some research before working on it. I have done some research on my behalf and found out that Zab Technologies, a renowned blockchain development company, has been doing ERC20 token development in a secure and trustable manner. You can contact them and get more insights and get a piece of demo, perhaps if you wish. And to make it more interesting, they provide you with wallets that can be used to store, send and receive tokens. You can contact them via