Utility Token Offering
Project planning
If you are considering offering tokens as a way of fundraising option, there are some things you should pay particular attention to, which can be done with an internal team and possibly additional external consultants:
- Investors relations, marketing and community building with the support of accelerators and advisors.
- White paper, tokenomics and other offering documents preparation.
- Technical token issuance.
- Legal and regulatory steps including legal opinion for the token and request for no-action letter. Regulatory requirements are to be considered both for country of issuance and countries where tokens will be offered publicly.
The Swiss regulator FINMA provided guidance on how to classify different types of tokens in its ICO Guidelines in 2018.
FINMA’s general approach to classifying tokens is based on the token's economic function and purpose, prioritizing the actual substance over its form. They apply the principle of "same risks, same rules," considering the unique aspects of each project.
According to this approach, FINMA identifies three main categories of tokens: utility tokens, payment tokens, and asset tokens. Additionally, there are hybrid tokens. In these cases, the tokens must comply with the regulations for both categories.
Utility Tokens
According to FINMA’s ICO Guidelines, utility tokens are digital tokens designed to give access to an application or service through a blockchain-based system.
They are similar to vouchers, chips, or keys that can be exchanged for services or products offered on a blockchain. Like security or asset tokens, utility tokens are linked to a contract that provides access to online services or products, creating a direct relationship between the token issuer and the token holder.
They are similar to vouchers, chips, or keys that can be exchanged for services or products offered on a blockchain. Like security or asset tokens, utility tokens are linked to a contract that provides access to online services or products, creating a direct relationship between the token issuer and the token holder.
Utility tokens usually have some of the following features:
- Access to Platform Services: Utility tokens are mainly used to unlock services or features within a specific platform or app. For example, a token might be needed to use a decentralized application (dApp), access premium content, or engage in a particular service.
- Medium of Exchange: Within their own ecosystems, utility tokens often act as the currency for transactions. Users can use these tokens to buy, sell, or trade goods and services.
- Incentives and Rewards: Utility tokens are often used to encourage user participation, such as contributing to the platform’s development, taking part in network activities, or staking tokens to support network security or governance.
- Governance Rights: In some cases, utility tokens give holders the ability to vote on important decisions about the platform’s development and management, such as upgrades, new features, or changes to the ecosystem.
According to FINMA’s ICO Guidelines, payment tokens, also known as cryptocurrencies, are digital tokens meant to be used now or in the future as a way to pay for goods or services or to transfer money or value. Cryptocurrencies do not give holders any claims or rights over the issuer.
This category includes well-known cryptocurrencies like Bitcoin, as well as others that have emerged from Bitcoin forks, such as Bitcoin Cash, Bitcoin Gold, and Litecoin. These cryptocurrencies were not created through ICOs, but it is possible to create cryptocurrencies using an ICO.
Unlike asset or utility tokens, payment tokens do not represent any legal claim or contract. They are unique assets in their own category.
Unlike utility tokens, payment tokens create relationships between three parties: the issuer, the token holder, and third parties who accept the token as payment.
This category includes well-known cryptocurrencies like Bitcoin, as well as others that have emerged from Bitcoin forks, such as Bitcoin Cash, Bitcoin Gold, and Litecoin. These cryptocurrencies were not created through ICOs, but it is possible to create cryptocurrencies using an ICO.
Unlike asset or utility tokens, payment tokens do not represent any legal claim or contract. They are unique assets in their own category.
Unlike utility tokens, payment tokens create relationships between three parties: the issuer, the token holder, and third parties who accept the token as payment.
According to FINMA’s ICO Guidelines, asset tokens are digital tokens that represent ownership of assets like debt or equity claims on the issuer. These tokens may give holders a share in future company profits or cash flows. Economically, asset tokens are similar to stocks, bonds, or derivatives. Tokens that allow physical assets to be traded on the blockchain also fall into this category.
From an economic perspective, these tokens are mainly used for investment or speculation by the buyer.
If a utility token functions entirely or partly as an investment, FINMA will treat it like a security, just like asset tokens.
From an economic perspective, these tokens are mainly used for investment or speculation by the buyer.
If a utility token functions entirely or partly as an investment, FINMA will treat it like a security, just like asset tokens.
Our Utility Tokens Offers in Switzerland & Liechtenstein
Your Expert
Tilda Publishing
Janina Petrovskaia
Founding Partner
Since 2017 Ms.Petrovskaia has structured over 100 web3 projects across various sectors worldwide with major focus on tokenization of real estate, commodities, diamonds, physical and digital art.
Setup process
Introductory call / Onboarding
Kick-Off Workshop
Execution
Benefits of Using a Token Launchpad:
- Pre-Vetted AudienceLaunchpads attract investors actively seeking new projects, giving your token immediate exposure to the right audience.
- Simplified FundraisingLaunchpads manage technical and logistical aspects like smart contracts, token distribution, and payments, making the process easier.
- Security and ComplianceReputable launchpads often handle KYC and AML checks, ensuring your project meets regulatory and security standards.
- Liquidity SupportSome launchpads help with initial exchange listings, creating immediate trading opportunities for your token.
- Marketing and VisibilityLaunchpads provide marketing support, boosting visibility across networks and social media to drive interest.
- CredibilityUsing a trusted launchpad adds credibility to your project, reassuring investors it’s been thoroughly vetted.
- Community BuildingLaunchpads foster community engagement through events and social channels, helping build a strong user base.
- Expert SupportMany offer advisory services on tokenomics, legal issues, and strategy, aiding new projects in launching successfully.
Key Contacts
Managing Partner
Partner