How to raise money for an ICO project: TOP-7 reasons to work with PSP

[Carding Forum]

How to make fundraising as easy and secure as possible using PSP?

The ICO of the Venezuelan cryptocurrency has started.

ICO has become a trend - the industry is rapidly developing, attracting millions of investments in crypto startups around the world. So, in the first half of 2021, ICO projects attracted $ 9 billion, which is twice as much as in 2021.

However, conducting an ICO is not an easy task, which, moreover, is associated with risks. So, in 2017, the Israeli startup CoinDash was hacked just a few minutes after the start of the ICO. The hackers posted the address of their wallet on the project's website, redirecting $ 6.6 million of investments to it.

Protecting ICOs from fraudsters will allow cooperation with a payment partner who will deal with financial issues related to fundraising. Since banks are reluctant to undertake such initiatives due to the high risks in the industry, it is worth looking for a partner among PSP (payment service providers).

You can read more about what payment intermediaries can offer to ICO projects in the PaySpace Magazine review.

1. Simplified procedure for opening an account​

Given the high level of fraud, many banks are reluctant to work with ICOs. At least for now. Therefore, in many cases, the only solution to start processing payments is to partner with PSP.

Cooperating with traditional financial institutions for a long time, PSPs are developing the so-called "credit of trust". Therefore, when an ICO project appears in the portfolio of a payment provider, banks are more loyal to it than if they had to cooperate directly.

2. Obtaining a certificate​

Governments and financial regulators fear ICOs are just another way to launder money. Moreover, they are called dangerous, accused of being connected with terrorists and fraudsters.

As a result, ICOs must now adhere to the AML (Anti-Money Laundering) policy. And also get specific licenses, which takes time and effort. PSP mediation will simplify this process. After all, some PSPs can even help ICO get a license.

3. Reducing costs​

In an effort to protect their interests, banks often charge higher fees for ICOs. Therefore, direct collaboration does not make sense. Meanwhile PSPs offer flexible payment processing terms based on their experience in the market and cooperation with several banks at once.

4. Additional technical capabilities​

ICOs often operate with huge amounts of money. Therefore, they do not need problems with the throughput of payments. Banks, in turn, have limits on the amount of payments they can process. Therefore, if they work directly, problems cannot be avoided.

To avoid such problems, the customer can ask the PSP for permission to process large payments. The provider, in turn, will discuss special conditions with the bank.

5. Secure payments​

Another reason to partner with PSP is the potential for increased security. After all, they use special software to prevent fraud.

6. Fast connection​

ICOs can start processing their payments much faster if they use PSP assistance. The connection process is individual, however, as a rule, it takes less time than integration directly with the bank.

7. Minimum KYC package​

PSPs require a minimum package of documents to start service. Of course, they also care about security, but they only ask for those papers that really cannot be dispensed with.