Standards for Crypto
Industry Best Practices for ICOs, STOs, and IEOs
We believe the best practices and standards are those that are built, maintained, and practiced by everyone in the community. There is an incredible community working to establish best practices and standards for initial crypto-asset offerings, including the Token Equity Standards Association, The Brooklyn Project, the Crypto Working Group, the CryptoCurrency Certification Consortium, and the Virtual Commodity Association proposed by Gemini.
We know that can be difficult to maneuver through so many different standards and approaches: That’s why TokenRaise has brought the standards and best practice expertise in-house.
We’re here to help you make sure that your ICO/STO/IEO meets the standards and compliance requirements that you need to be competitive. You can rely on us to stay on top of the fast-changing expectations of the crypto-asset marketplace, and to help you do the same.
The Token Standard
Appropriate industry standards that govern the development and use of cryptocurrencies and cryptosecurities are essential for ensuring integrity and confidence for all stakeholders. TokenRaise is here to help you evaluate and demonstrate your project’s compliance with some of the high standards and best practices that are being developed by the crypto-community.
We will help you to understand what standards exist, which standards are essential, and we will conduct an audit of your project that will help you clearly communicate and validate the high standards of your project. We have organized four pillars of standards and best practices for ICOs, STOs, and IEOs, drawing from a range of current industry best practice, and aspirational initiatives, and these include:
Regulatory Compliance Standards
TokenRaise actively monitors the developments of cryptocurrency and cryptosecurity regulations around the world. At a minimum, TokenRaise requires that all crypto-asset projects certifying on these standards meet all current and known-to-be-pending regulations and requirements of the United States Securities and Exchange Commission (SEC), by the end of certification. In addition, where appropriate, TokenRaise requires all projects certified with TokenRaise meet applicable regulations and requirements of non-U.S.A. markets, in which additional transactions may occur at the local/regional level, at the time of the ICO, STO, or IEO. The specific standards for compliance are outlined in the table below.
Project Transparency Standards
TokenRaise, as well as many others in the industry, are only interested in doing business with those who are willing to share information about themselves, their organizations, and their plans. As such, transparency requirements are enforced by TokenRaise for all ICO support work. Transparency standards are important for ensuring that potential investors have sufficient information to gauge the value of the ICO and project, as well as to gauge the credibility of the project team. The specific standards for transparency are outlined in the table below.
Corporate Responsibility Standards
TokenRaise believes that companies can be profitable as well as good for the world. To have the best chance of being responsible stewards of investor interests, companies that certify through TokenRaise must also demonstrate that they are responsible in other ways – toward their employees, towards the customers, towards their communities, and towards the environment. As such, Corporate Responsibility requirements are enforced by TokenRaise for all ICO support work.
Corporate Responsibility standards are important for ensuring that responsible and sustainable business practices are built into the ICO project from the very start. In addition, this aspect of the Smith Standard ensures that potential investors have sufficient information to assess the ‘good-for-the-world’ potential of the project, and credibility of the project team. The specific standards for Corporate Responsibility, and differentiation between the Token Standards and the Smith Standards, are outlined in the table below.
Having a focused and engaging social responsibility strategy as part of your ICO and project only improves on the appeal of your offering to potential investors, and only serves to enhance your business performance. This standard requires you to consider the appropriate social responsibility strategy for your ICO. TokenRaise would be happy to support your efforts to develop a social responsibility strategy, which may include minimum commitments for employee ownership, ownership diversity, Board diversity, and equitable compensation, or even more encompassing aspects of being responsible stewards of your investors’ money. We can help!
Security is of paramount importance to the industry, and as such TokenRaise requires all projects to go through a full smart contract audit and penetration test.