Token sale 101

It is with great excitement that the Republic team announces our re-commitment to token offerings.

The blockchain industry as a whole has moved away from issuing digital assets (sometimes called tokens) to U.S. investors for a variety of reasons. These include a lack of regulatory clarity, confusing precedents set by the last wave of ICO raises, and an unclear methodology for defining industry roles. It was not at all clear how and when a company could classify itself as ‘decentralized’ and its token as a ‘utility’ (if it ever can). 

Republic aims to correct this trajectory by leveraging our existing offerings platform to facilitate token offerings globally by working closely with issuers looking to leverage our Regulation Crowdfunding platform, the Republic Deal Room, and more. We’re eager to continue pushing the industry towards growth and acceptance of all participants, and are excited to provide more opportunities to a broader set of backers.

What is a token sale?

Token offerings tend to be the final fundraising event in a crypto company’s launch timeline, and they tend to occur just before the asset goes live on the open market. The main goal of a token offering is to provide the broadest possible access to the asset. There are a few reasons that  larger distribution benefits these companies.

1. Raising funds from the crowd provides greater flexibility than taking only private VC funds.

2. Distributing the assets helps push the decentralization narrative. More asset holders mean more network participants. This virtuous cycle often reinforces itself as backers often become fundamental to business governance decisions moving forward.

3. Aligning the company’s value accrual with its base. The crypto world is extremely democratic and aims to uplift all contributors to the ecosystem via aligned goals. If the company succeeds, so do its network participants and asset holders. 

What to expect from Republic token offerings

Republic’s platform works tirelessly to bring our users the most seamless investment flow possible. We are constantly pursuing new ways to remove friction, and provide greater access to our users. As such, token offerings on Republic will maintain an investment flow that is as familiar as possible.

Any users that have previously created accounts and gone through KYC will be all ready to go. New users that wish to participate should create an account early, go through KYC, and secure their place on the platform in order to have the smoothest possible experience. Our team will keep you clearly informed about sale timing. However, being prepared ahead of time will help assure your place in the sale, as well as help our team, who will be bombarded with new signups on the day of the sale. 

Who gets to conduct token offerings on Republic?

The companies that we put forth have been deeply vetted on all fronts. Republic’s technical diligence team is composed of experienced developers who have launched products of their own, earned PhDs in the field, and have reviewed dozens of projects throughout the years.

Aside from the technology, Republic also takes a deep dive into issuers' finances, their previous raises, and their strategy for utilizing all existing capital in an efficient manner—we aim to present only serious, long-term players. Lastly, Republic works closely with these companies to secure their tokenomics (the economics of a specific token ecosystem), listing strategies, and influential partnerships to best ensure their success following the token sale. Our backers can sleep well knowing that we only present the cream of the industry crop to our user base.

It is important to note that Republic will prioritize token-native platforms, i.e. companies that build technology that requires a token at the core of their functionality and simply could not exist without one. While the current hype around crypto markets is exciting, it is tempting to add token incentives where they are not needed. Republic’s goal is to cut through the noise and endorse companies that know the industry inside and out, are building technology for other builders to grow on, and contribute to mass adoption. At the moment, this largely revolves around infrastructure technologies and decentralized finance, but each market cycle brings new tech layers to the forefront. 

As the industry continues to evolve, Republic will be alongside it, supporting the most relevant and determined teams who build for the sake of supporting the industry at large, working to launch projects that benefit the many over the few. 

This blog was provided by Republic Crypto LLC dba Republic Advisory Services. Offerings may be hosted by Republic Advisory Services or its affiliates and may be subject to terms and conditions on participation. Investments in private companies are particularly risky and may result in total loss of invested capital. Past performance of a security or a company does not guarantee future results or returns.  Offers to sell securities can only be made through official offering documents that contain important information about the investment and the issuers, including risks. Investors should carefully read the offering documents. Investors should conduct their own due diligence and are encouraged to consult with their tax, legal and financial advisors.