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Creating a new token and selling it to fund the development of software has become a preferred way of fundraising for cryptocurrency entrepreneurs. It’s a tempting tool, allowing startups to avoid traditional investors, build a community and allow anyone anywhere to own a stake in the project. For participants, there is the promise of big financial upside and being part of novel undertakings.

Lisa Cheng, whose consulting firm Vanbex has accompanied many crowdsales, joined us for a discussion of this revolutionary way to fund and monetize open source software.

Topics covered included:

- Why crowdfunding and cryptocurrency are a natural fit

- A brief history of crowdsales in the cryptocurrency space

- US securities law and the questionable legality of token sales

- The value of writing a solid white paper before launching a sale

- Elements of a successful coin launch

- The role of companies like Swarm and Koinify in conducting crowdsales

Links mentioned in this episode:

- An Interview with Lisa Cheng http://bit.ly/1xUYXjJ

- Tokenizing the User Experience http://tcrn.ch/1DOEXGE

- Token Sales and the US Securities Law: http://bit.ly/1BIqogP

- David Johnston DApps Whitepaper: http://bit.ly/1uhF7BL

- Vanbex Group: http://bit.ly/1xrQolR

Sponsors:

- Buy and sell alt coins instantly with http://ShapeShift.io

Show notes: http://epicenterbitcoin.com/podcast/071

YouTube: http://youtu.be/wAvcc2IbNTU

Epicenter Bitcoin is hosted by Brian Fabian Crain & Sébastien Couture.

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