Noku Update

Why does a Tokenization platform matters?

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The Earth’s landscape is constantly changing through forces of nature. The process of precipitation, wind, and land movement cause changes to morphology over the course of time. Natural changes might change the landform even within a short time.

When you look at what happened to the Blockchain World throughout the last year, it’s interesting how it has changed and how similar it is with natural forces.

Not only they are both colossal disruptive forces that reshape everything around them. They act in a similar way and their appearance changes slowly but constantly. When you visit some places after some time you might not recognize the panorama since everything has melted or eroded.

The same happens with the Blockchain since in one year a huge number of things have changed. A lot of players left the market, so many others entered it. The whole landscape has changed.

One step forward has undoubtedly been made by technology. Think about the ICO boom across 2017. It was normal if you were up to create a token sale, to hire a development team and create Custom Smart contracts, auditing them spending any amount starting from 50k. Only one year ago nobody would have thought of using a tokenization platform to create an ICO or STO. We can say that in only 12 months, accessibility to Blockchain world has improved drastically.

Focus on your Core Business

The best way to succeed in business is somewhat simple: specializing and taking advantage of what you’re good at. One of the problems faced last year during the ICO boom was that founding teams were thinking about too many aspects.

When you have to focus on development for Smart Contracts, hiring developers you are moving on a field that’s not necessarily your native one. Moreover, the process of writing token sale smart contracts, even if not easy, is quite repetitive and can be automated. Tokenization platforms help you to optimize your resources, allowing you to focus on your Core Business, rather than needing to switch in unknown territories.

Moreover, in such a constantly changing world, being up to date with technology standards is very important in order to increase liquidity and accessibility. Only listing all token standards proposed for the Ethereum network is a tough job and causes confusion.
In this case, using a platform allows you to comply with the most updated and common standards, minimizing the risk on that side. Right now, ERC20 is the most widely used token standard and it’s supported by Noku and TokenRaise.

Keep everything under control

Security is definitely a topic that confuses many entrepreneurs who approach the blockchain world. One of the reasons why people don’t pursue their project is the fact that they’re scared about security.

When you use a tokenization platform you reduce to the minimum the risk of smart contract leak, which is the most dangerous thing to happen in a Token Sale. If a smart contract is tested by reputable companies and if it has been successfully used already for other token sales, then there is no comparison with other possibilities. Starting from scratch, on the other hand, is a time-consuming job: writing the first line of code, integrating smart contracts for token sale, performing the testing necessary to guarantee your investors complete security of their investments.

Another issue that may scare is the complexity of the technology present: “If I have to rely solely on my developer’s skills, who is going to ensure that I have everything under control? Moreover, how I am going to keep track of my efforts, when the technology used looks so cryptic to me?”.

The answer is a Tokenization Platform that through user interfaces that makes Blockchain accessible to everyone. Forget about thousands of lines of code. One year has passed, technology and accessibility have improved by far. Nowadays, both on project creator side and investor side we are getting close to the masses using Blockchain. Why so? Quite simply, because you do not need to be a coder to create an ICO neither to be an expert to participate in a Token Sale.

First Build, then Launch

Days where barely regulated projects used to successfully raise money from just a poorly written white paper have long gone. Funds are not gone, decentralized crowdfunding is still here, but investors became wiser and invest theirs more cautiously.

Projects who want to survive in a bear market and pull through it need to show some real potential and business model. The projects of today can learn multiple lessons from the past, knowing what worked and what did not when kicking off a Token Launch. These projects may research and study to implement proven and quality practices that can lead to success.

Naturally, the product has a huge role in ensuring token sale success. The token, in fact, either needs to have proven utility or should offer real returns on investment. The market will slowly change and evolve into a more rational investment offering.

Security Token offering might help in mitigating a lot of the risks that come from traditional ICOs while, as a result, interest will shift from individual investors to institutional ones.

Security tokens are essentially financial securities and therefore, they are backed by tangible assets such as company revenue. STOs, everyone says, will be a big thing in the future even if ICOs might make a come-back.

However, one thing is safe to say, the Tokenization and Token Economy is here to stay and will reshape the world as we know it today. And a Tokenization platform is going to be needed more and more. 

 

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