Support of token sales (tokensale)

Tokensale (or token sale) is an innovative means of attracting investment based on the issuance of tokens on a blockchain platform. This process has become an integral part of the world of cryptocurrencies and digital assets. Tokens are digital assets that can have functions ranging from providing ownership rights to participating in profit sharing.

Peculiarities of tokensale organization

1. Assessing the legal nature of the token

Assessing the legal nature of a token before a tokensale is an important step for the issuer (the organization issuing the token) and potential investors. The legal status of a token may significantly affect the regulation of its issuance, circulation and use, as well as the obligations and rights of token holders.

At this stage, the possible risks of qualifying the token as security, e-money or other regulated instrument can be identified. Following the assessment, clients are consulted how to minimize the risks identified during the analysis of the intended token functionality.

1.1. Drafting Legal Opinion

More often than not, the final step in assessing the legal nature is the draft of a document called Legal Opinion on the token or LO. This document not only establishes the legal validity and legal nature of the token, but also provides a level of transparency to investors fostering their trust.

On many centralized cryptocurrency exchanges, Legal opinion is a mandatory document to submit when launching a token listing.

2. Determining the order in which the token is offered

Once the legal nature of the token has been determined, the method of offering the token must be chosen. The offer can be made by way of private sale, ICO, IEO, IDO.

Private Sale is conducted directly between the issuer and investors before the official launch of the project. The characteristic features of such an offer include: limited access, high minimum investment threshold, and is often made under some special conditions.

ICO (Initial Coin Offering) in turn is a form of crowdfunding where a company offers investors to purchase its tokens in exchange for cryptocurrency or fiat money.

IEO (Initial Exchange Offering) is a form of tokensale in which a project is launched on a cryptocurrency exchange platform acting as an intermediary. Investors can then purchase tokens directly on the platform, which provides an additional layer of security and liquidity.

The last option is IDO (Initial DEX Offering), a form of tokensale similar to IEO in which the project is conducted on decentralized exchanges (DEX) of cryptocurrencies.

3. Preparation of legal agreements for sale

Preparing legal agreements for the sale of cryptocurrency tokens involves drafting two key documents: Simple Agreement for Future Tokens (SAFT) and Token Sale Agreement. SAFT is an agreement aimed at pre-funding a project by guaranteeing investors the right to receive tokens in the future. The Token Sale Agreement details the terms and rules of the token sale itself, establishing the rights and obligations of both the issuer and the investor, ensuring transparency and legal protection of both parties in the process of cryptocurrency exchange.

4. Project verification by the exchange

Each exchange has its own unique requirements and verification procedures prior to listing. More often than not, the first step is to check out the organizers and their reputation. Exchanges seek to make sure the team was trustworthy and honest in carrying out extensive review of their previous successes. One of the main areas of scrutiny is technical aspects of the project: the features of the blockchain, the technical side of the token and its security.

The exchange also analyzes the project resources, including the identification of activity in social networks and the community of users. The size and activity of the community are considered as positive parameters affecting the attitude of the exchange to the project requests. The exchange may also assess liquidity and market interest by conducting appropriate due diligence to analyze the potential success on the exchange.

Support services for selling tokensales

Our company specializes in support and maintenance of the tokensale process, providing a full range of legal services for the successful implementation of your project. We help secure your tokensale and enable your token to be successfully listed on major cryptocurrency exchanges, which helps increase liquidity and investor interest.

Our experience and comprehensive approach ensures a high level of success for the projects we work with. We pride ourselves on supporting innovative and promising ideas in the world of digital assets and offer our services to successfully carry out your tokensale.