Token Distribution Review

Token Distribution Review

When your organization is planning a launch, how you plan to distribute tokens matters. Too many tokens issued and distributed, the less perceived value you have. Too few, and you may run into fundraising hurdles. Most importantly, consumers and investors want to know how you plan to utilize the tokens you issue. The blockchain community is sensitive to money-grabs and token distributions are highly scrutinized to make sure that the product you are launching isn’t just an attempt to raise capital and flee the market. The successful blockchain project or startup will be able to itemize and account for spending, investments and distributions. Token distributions all hinge on the estimated costs of bringing your product to market, without those estimates the distribution plan is meaningless.

Token distributions are a new vehicle for compensation and investment and are highly scrutinized as a result. Not only that, but the size of the distribution and initial price can put you into a precarious position with the SEC by categorizing your token as a security. The challenge of creating a well received token distribution plan comes down to your overall strategy and thoroughness in crafting a successful business plan.

VME can help! VME consultants work with a wide variety of business planners and financial analysts to help determine your real costs to launch. Creating a distribution plan that benefits your business and increases good-will is our focus. Most organizations overlook expenses like licensing and placements that can erode a development fund quickly. VME takes these into account, assesses the technical abilities of your team to estimate the actual time necessary to launch and crafts a distribution plan that meets guidelines, passes muster, and creates enough reserves for you to develop your project without the headaches of tightening budgets.

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