Create Token Sale
Create Token Sale is an easy to use STO / IDO / ICO token sale script that lets you run a token sale in a lean way. Use this function to conduct and run an
Initial coin offering (ICO)
Initial DEX offering (IDO)
Security Token Offering (STO)
In order to get started with your Token Sale, you need to have a token prepared. Unless you already created a token, go to Create Token to configure and create your token.
Select your token for the token sale
Once you have your token created, you can enter the Create Token Sale function and select the token that you want to run a token sale for from the drop-down menu.
All available tokens that you own are automatically shown in the drop-down menu. Alternatively you can paste the token contract address in the input field.
We recommend that you don't use tokens in a token sale that have whitelisting enabled. If you still want to use such a token in a token sale, you will have to add the token sale contract address to the whitelist as well as the addresses of all investors otherwise you will not be able to start the token sale and investors wouldn't be able to claim their tokens after the sale is over.
You should also be careful when creating a token sale that have transaction tax/fees, as you would need to fund the sale contract with the full amount of tokens on sale.
Configure your token sale
Once you have selected the token and clicked Continue, you will enter Step 1 of 2: Configure your token sale.
Select payment token
Here you determine, how your investors will pay for the tokens you have on sale. In the past, many token sales have been conducted in a way that the only payment method was the native cryptocurrency of the blockchain on which the token was created.
In the case of Ethereum, this was ETH or in the case of Polygon it was MATIC. This has the disadvantage that investors and issuers are exposed to exchange rate fluctuations of the underlying cryptocurrency.
Therefore, Token Tool lets you choose any custom token on the selected chain as a payment method. The most common choice is usually a stable coin such as USDC. Token Tool provides you with the possibility to already choose USDC as a pre-selected option.
Of course, you are free to use any stable coin or custom token. Just make sure that the payment token is easily accessible for your investors. You can also include a DEX widget in your token sale for convenient exchange from cryptocurrencies such as ETH to the payment token / stable coin of your choice.
If you choose a custom payment token, you will need to specify the payment token via its token contract address. If you have the custom token in your own wallet, you can simply select it from the drop-down menu, then you don't need to look up the token contract address.
Set the token price
This determines the price per token on sale quoted in the selected payment token. So let's assume that you choose USDC as the payment token, then entering a value of 5 means that for each token on sale 5 USDC has to be paid by your investors.
Sometimes you may want to provide incentives for investors to invest in your token sale early on. One way to do that is to apply discounts / lower prices in different weeks throughout the token sale such as:
Week 1-2 token price: USDC 0.90
Week 2-5 token price: USDC 0.95
Week 5-8 token price: USDC 0.98
In order to do that you can set up a separate token sale for each tier. Just make sure to set the start time and duration of each token sale in a way that there are no time gaps between the different tiers.
Options for Tiered Pricing
Let’s assume you want to raise up to USDC 100,000 for your token. Here is how you can incentivize injvestors to join early
Option 1: Multiple Token Sale Contracts
How It Works: Create separate token sales for each pricing tier.
Example:
Tier 1 early bird: sell up to 10,000 tokens at the lowest price of USDC 0.75 per token (this implies a 25% discount) for 3 days or shorter if the hardcap is reached – this means you raise up to USDC 7,500 in this tier
Tier 2 main sale: immediately after Tier 1 finishes (either after 3 days or once the hard cap is reached) you create a second token sale contract, here you sell up to 80,000 tokens at a price of USDC 0.85 per token (this implies a 15% discount) for 6 days or shorter if the hardcap is reached – this means you raise up to USDC 68,000 in this tier
Tier 3 late comers: immediately after Tier 2 finishes (either after 6 days or once the hard cap is reached) you create a third token sale contract, here you sell up to 25,789 tokens at a price of USDC 0.96 per token (this implies a 4% discount) for 3 days or shorter if the hardcap is reached – this means you raise up to USDC 24,500 in this tier
Steps to Implement:
Create the first token sale (e.g., early-bird tier) with the desired price and duration.
If desired, use whitelisting to restrict participation to approved addresses for the early-bird sale.
After the first sale ends, create a second token sale (e.g., main sale) with updated pricing.
Pros:
Simple to implement using Token Tool’s existing features.
Clear separation of pricing tiers for investors.
Challenges:
Requires managing multiple sales and making sure that the next tier starts immediately after the previous one ends.
Option 2: Post-Sale Bonus
How It Works: Sell tokens at a single price during the entire sale, then manually distribute additional tokens to early investors as a bonus to reflect discounts.
Steps to Implement:
Create a single token sale with a base price (e.g., USDC 0.15 per token).
Record investments made by early-bird participants (e.g., within the first 3 days or up to a certain total amount raised). You can easily retrieve addresses of investors from the block explorer when inspecting the transaction history of your token sale contract address.
After the sale ends, calculate and distribute additional tokens to early investors based on the discount (e.g., 2 additional tokens for every token invested during the first tier, 1 additional token for every token invested during the second tieretc.). You can easily airdorp tokens to your investors with Token Tool.
Pros:
Simplifies the token sale process by using a single sale.
Allows retroactive implementation of tiered pricing.
Challenges:
Requires manual calculations and token distribution.
Set token sale raised amount caps
Soft cap: this is the amount you need to raise by the end of the token sale in order for the token sale to happen. The soft cap must be lower than the hard cap. Soft cap range: so let's assume USDC is your payment token and you want to raise USDC 5,000,000. The soft cap can be a maximum of USDC 4,999,999 and a minimum of USDC 0. If this amount is not reached, the invested funds can be reclaimed by investors after the token sale is over.
Hard cap: this is the maximum amount that you can raise in your token sale.
Choose an amount that is in line with your funding needs and that you believe you can realistically raise from investors.
Set investment amount limits per investor
This setting is optional and allows you to control the maximum and minimum investment per investor.
Min investment amount: if you set this too high, the entry barrier for some investors might be prohibitive. If you set this to a very low amount, you might have to manage many very small investors.
A value between 1 and 100 dollars normally makes sense unless you are allowed to only accept accredited or professional investors who invest much higher amounts each.
Max investment amount: this is the maximum one investor can invest.
Please note that the investment amounts min and max values are tied to addresses, it is therefore possible to circumvent these limits. If you want to make sure that a certain investor doesn't exceed the limits, you need to set up the token sale in a way that only whitelisted addresses can invest. That way you can make the connection between a particular investor and an address.
Set the timing
Token sale start time: this is the moment from which investors can invest.
It normally makes sense to run a marketing phase before your token sale starts. You should also allocate enough time to send the tokens to the token sale contract address. When you want to whitelist investors, you can also do that during a ramp-up phase before your token sale starts.
Typically anything between starting in a few days up to several weeks are usual values here.
Important: if you want your token sale to start immediately, we highly recommend to leave enough time to send your tokens to the sale contract. Therefore, make sure you leave at least half an hour between the time you create the sale and the token sale start time.
Token sale duration in days: this determines how long investors can invest in your token sale.
When this is too short, you might not have enough time to find investors. If too long, your marketing impact might fade away. Adjust everything according to your needs. Anything between 2 and 12 weeks (i.e. between 14 and 90 days) is usual here.
As stated above, sometimes you might want to provide discounts for early investors. In that case it makes sense to set up a token sale for each discount tier and align the start and duration of each discount phase accordingly.
The token sale ends either at the end of the token sale duration or when the hard cap is reached.
Lock duration in days: this determines how many days after the token sale ends investors can claim their tokens.
Set token distribution settings
This feature allows you to define how tokens will be distributed to buyers after the token sale ends. You can choose between two options:
Release all tokens immediately after the sale ends, or
Set up a custom token release and vesting schedule.
If you opt for a vesting schedule, you will be able to configure multiple release stages. For each stage, specify:
The date and time of the token release.
The percentage of tokens to be released at that time.
The total percentage across all stages must equal 100%, ensuring the full token allocation is eventually distributed.
Once the token sale concludes, all tokens are locked and will only become claimable according to the schedule you've set. Investors will be able to claim their tokens during each release phase as they are unlocked.
Burn unsold tokens: by activating this option, all unsold tokens will be burned after the token sale ends when you withdraw funds.
Liquidity pool listing (i.e. IDO)
Here you can choose whether to launch a sale with automatic liquidity listing, or without auto listing.
Token sale without auto-listing (manual listing)
If you wish to create a token sale without automatically listing your tokens on a DEX, simply choose the manual listing option.
Token sale with auto-listing
Important: The auto-listing feature will not work for tokens with an existing liquidty pool. It is also incompatible with token contracts with fees, whitelisting, and/or wallet balance limits. Double check necessary adjustment of token features prior to proceeding.
When choosing the auto listing option, you will be prompted to configure LP submission settings based on available options:
LP percentage: This is the percentage of raised funds that will be added directly to the liquidity pool after the sale completes.
LP tokens locking duration: How long your liquidity pool tokens will be locked up, you will not be able to withdraw liquidity from your pool for as long as the locker is ongoing.
Price per token: Determines the price relationship between your sold tokens and the payment token in the liquidity pool.
A preview of results will be displayed giving you better insights into the process. Make sure to review all the settings before proceeding to the next step.
When a sale with auto listing is complete, the creator will have 7 days to add liquidity otherwise the sale will fail and investors will get a refund. Make sure to refer to the manage auto listing sale documentation to avoid issues.
Set investor whitelist
This setting has a big impact on how you onboard investors, make a careful decision here.
Every address can invest: in this case everybody can invest in your token sale. This option is suitable for unregulated token sales such as Initial Coin Offerings (ICO) where you don't need to know the identity of your investors. Here you don't need any additional investor on-boarding. The Token Sale function of Token Tool delivers everything you need for the entire process.
Only whitelisted addresses can invest: when you select this option, an investor can only invest from an address that you whitelisted previously. This option is suitable for token sales where investor KYC is necessary e.g. for regulatory reasons. This is usually the case in a Security Token Offering (STO). The whitelisting of addresses is done under the Manage Token Sale functionality.
You can manage investor on-boarding manually via a Google Form and a spreadsheet or use other products for this such as ERP software.
When you manage investor on-boarding via a Google Form and a spreadsheet, everyone who wants to invest should submit the following information:
Full name (and legal entity in case of an institutional investor)
KYC document (e.g. image of an ID card or passport) of investor or legal representative
Full postal address
Date and place of birth
Citizenship
Tax ID
Email address
Blockchain wallet address
Declaration about source of funds
When all data is checked, the wallet address can be added to the whitelist and email updates can be sent (e.g. when the sale starts and finishes).
Set token sale owner
By default the wallet address with which you are logged-in to token tool is the owner. However, you can also assign a different owner who will then be able to manage the token sale. Only change this if you know what you are doing!
Review token sale configuration and create sale
After you click Continue you arrive at Step 2 of 2: Review token sale configuration. Here you can review everything. Once done, click on the Create sale button to launch your token sale.
After you confirmed the token sale creation from your wallet, you will be shown the Token sale contract address and Shareable token sale link. Bookmark them both!
The Shareable token sale link is the page that you need to share with your investors so they can invest. It normally makes sense to include this page on your existing website via an iframe. Then you can display your project details, team, roadmap etc. on your website and have the token sale page through which investors invest integrated directly.
The Token sale contract address is necessary to log in to Manage Token Sale.
Go to Manage Token Sale
You can edit your token sale up until 10 minutes before the start of the token sale in the Manage Token Sale section. It is not possible to make edits to the token sale once the tokens have been transferred to the sale contract.
Once you create the token sale successfully it's important that you send tokens to the token sale contract under the Manage Token Sale function or via standard ERC20 transfer. Otherwise the sale will fail upon start time.
Last updated
Was this helpful?