Chain-agnostic token sales platform Tokensoft has successfully deployed Tokensoft version 2, a Web3-enabled version of its platform, on the Ethereum and Avalanche blockchains.
The company said in a press release shared with CoinDesk that Tokensoft v2 is intended to provide a way for customers to sell and distribute their own tokens. The idea is to make sales more transparent for users by ironing out common issues such as the prevalence of bots on networks, skewed price discovery and sudden transaction fee spikes. In addition, the platform offers users tools and resources to comply with increasingly complicated international token sales rules and regulations
Tokensoft CEO Mason Borda told CoinDesk in a recent interview his company, which was founded in 2017, has always taken regulations compliance issues seriously.
In its early days, the platform earned approval for its first two projects through the Securities Exchange Commission (SEC), he said. Then, in 2019, the security token facilitator rolled out a tool to help token issuers comply with securities requirements, developing an administrative panel for transfer agents. It’s that approach to regulations issues that has carried through to the launch of the company’s Web3-enabled platform.
“We work with our customer counsel to understand the regulatory requirements because a lot of times these projects are run by [web developers] and not people with regulatory expertise,” Borda told CoinDesk. “So we sort of are an intermediary there and help these projects comply with their international regulatory requirements.”
Tokensoft v2’s deployment on Ethereum and Avalanche follows a four-week round of testnet deployments with 13,637 users.
Tokensoft’s leadership plans to deploy its v2 platform on 10 chains by the end of this year. The platform has already received preliminary grant approval from blockchains like Avalanche and Polygon, with the latter chain launch expected to bring another 5,000 to 10,000 users to the platform.
Tokensoft’s team also wants to add more users by making the experience of selling and distributing tokens easier and more rewarding.
So far, the platform has worked to eliminate bots that can monopolize sales, ensuring real users can access and participate in popular sale events across the platform. To make sales more streamlined and less expensive, Tokensoft also employs Web3-native technology that queues users into a sale at an expected rate. This prevents users from flooding a sale all at once, which causes transaction fees on the network to spike.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.