Building a token sale is at once quite simple — you build a token and sell it — and quite complex. A number of issues crop up immediately, including, but not limited to, the need for an expensive team of lawyers, marketers, social media experts and, until now, an expensive crew to build your smart contract.
CoinLaunch, a project by repeat entrepreneur Reuven Cohen, aims to reduce the complexity of at least one part of the process. His service, CoinCreator, allows non-programmers to build simple smart contracts in a few minutes.
“Early this year we began looking for an end-to-end platform that facilitated everything we needed to build, deploy and monetize compliant Initial Coin Offerings in one place,” said Cohen. “As we searched we quickly realized that nothing like this exists.”
“Today if you want to create an ICO the only real option is to hire a team of blockchain developers, lawyers and accountants, and marketing gurus or build all the smart contract components yourself. This process is time-consuming, complicated and expensive and also assumes you can even find the right people to help you, which is in itself difficult.”
The creator asks for a few basic bits if data, including the name of your coin and the total issued. Then you create a simple contract that controls the flow and usage of these tokens. Cohen claims the product is compliant with current regulations as long as you connect the token to some sort of utility and avoid selling equity.
The project is self-funded and Cohen and his partner Randy Clemens are planning their own token sale in 2018.
“CoinLaunch provides a free and easy to use Coin Creator that enables anyone with little to no experience in cryptocurrencies the ability to create their own Ethereum-based ICO (ERC20 tokens),” said Cohen. “Combined with an ICO campaign creator that allows users to create an entire ICO campaign as well as accept Ethereum-based funding from backers.”
“The platform includes an integrated compliance system that allows for any vetted ICOs to comply with various local regulations, including KYC and AML. We are also working on integrating SEC-based crowdfunding compliance, specifically Job Act Title III and Regulation A.”
Ultimately tools that reduce the complexity of token sales will take over from the jerry-built systems currently in place. Token-sales-in-a-box services exist, but they are aimed at raising massive consulting fees and basic, programmatic and regulated services just don’t exist yet. This is an interesting first step, and, according to Cohen, it’s quite popular. The project launched yesterday and so far users have generated the equivalent of about $1 billion using the service.
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