BlockToken describes to the Australian Crypto community how to launch a token offering within today's current climate. This presentation discusses the various methods used in the marketing and distribution of ICO and STO campaigns.

1. How to Launch a
Token Offering
Wednesday, 31 October 2018
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2. 1. What is an ICO?
2. Types of ventures
3. Benefits of Tokens & Smart Contracts
4. STOs and Compliance
5. Token Economy Design
6. Complexity & Stages of an ICO
7. Marketing blockchain ventures
8. Post-ICO Token Liquidity
9. Challenges and Risks
10. Key Success Factors
What we’ll talk about today
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3. 3
What is an ICO?
An initial offering to buyers of a digital
coin or token
Token buyers transfer
Ethereum to the Seller’s
wallet
The token smart contract
issues the tokens to the
token buyer’s wallet
Transactions are recorded on the
Ethereum blockchain

4. 4
Types of Ventures that Suit a Native Token
Blockchain
tech
Tech Driven
Sectors
Transactional Contracts
Global Mass Market Disruptive

5. 5
Benefits of Smart Contracts & Tokens
Liquidity - they can be traded
All transactions recorded
Decentralized
Automated smart contracts
Smart Contracts and
Tokens Represent a New
Technology Model that
can Replace Many
Centralized Applications
Eliminate manual processes
Proof of transaction/ownership

6. 6
STO - Security Token Offering
A Security Token
provides a registered
or compliant
solution for offering
tokens
The STO may
provide an equity or
debt like return to
token holders
An AFSL required in Australia for
wholesale token offerings or prospectus
for retail offerings
Token smart contracts embed the
functions of the security features (if any)
KYC required for initial purchasers and
the secondary market

7. Compliance
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In Australia, US or
Singapore offers to
retail investors are
restricted and would
need a prospectus
Obtaining an AFSL or
using exemptions such
as wholesale only
investors
Global regulations
vary and most ICOs
are global in nature
There’s a global move towards
compliant or security token offerings

8. Key trends in Australia
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Historically:
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Emerging:
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9. Token Economy Design - Utility Token
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10. Token Economy Design - Security Token
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Does the token
represent
equity?
Does the token
provide
dividends or
other returns?
Is the token a
share in an
asset?
Does the token
provide an
option or
derivative?
The token smart contract
needs to capture the
‘security’ functionality
There needs to be a
method to connect the
digital contract to the
regulatory environment
Companies need to
comply with security
regulations by jurisdiction

11. Challenges for Security Tokens
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Whilst a compliant STO maybe more attractive to
investors there are three key challenges:
Different liquidity
factors
Greater costs of
compliance and
ongoing KYC will
make smaller
offerings less
effective
Bridging the gap
between traditional
regulatory bodies
systems and the
rapid blockchain
trades

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ICO Projects are Complex
Find a globally
disruptive concept
Understand tax
implications of
tokens by
jurisdiction
Navigate traditional
securities
regulations without
formal guidance
Build a blockchain
powered tech stack
Market the business
in an increasingly
competitive
environment
Ensure liquidity for
your future tokens
Encapsulate your
concept and
investor key themes
in a whitepaper
Find a large and
diverse team and
‘expert’ advisers
Raise significant
capital in an
accelerated
time-frame

13. Stages of a tokenization project
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Pre-ICO ICO Post-ICO
● Blockchain concept
● Whitepaper drafting
● Develop the brand
● Token economy
● Team build
● Partnerships
● Infrastructure
● Marketing campaigns
● Bounties
● Publicity
● Roadshows
● Receive funds
● Community
development
● Applying to
exchanges
● Issuing tokens
● Managing token
community
● Creating liquidity for
the tokens
● Building the
business

14. Marketing blockchain ventures
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15. Blockchain Marketing is Broad and Crypto
Community Focused
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16. Post-ICO Token Liquidity
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Some P2P platforms allow
immediate trading between token
holders
Exchanges
P2P
OTC or liquidity programs help
create buy/sell trades before a
market is established
OTC
Applying to exchanges takes time
and may require paying upfront fees
Token liquidity is a component
of post-ICO value.
Liquidity needs be generated.
Larger ICOs are more likely to
be liquid.

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Challenges and Potential Risks
Blockchain and
native token
applications costs
are relatively high
Obtaining an
AFSL is an
additional hurdle.
Cannot market to
retail investors in
Australia and US
Traditional and
effective
marketing
techniques can
impact the ability
to reach the right
audience
Building teams
and audiences
early can be
difficult to
manage

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Key Success Factors
Preparation and pre-ICO work
A blockchain model that
appeals to the crypto
community
Access to resources and team
members
Building a good network
A disruptive business model
Compliance and the right
structure by jurisdiction

19. Getting Started
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Do you have a clear business model?
Available budget - do you need seed
funding?
Have you built your team?
Build the Initial Plan of
Action

20. Contacts
Genson Glier, CEO
genson@blocktoken.ai
Ivan Mantelli, ICO Advisory
ivan@blocktoken.ai
BlockToken
https://blocktoken.ai
Telegram: @BlockTokenAI
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