Ever wondered why every ICO seems to start with an ERC-20 token? If you're exploring crypto fundraising for your project, this question has probably crossed your mind. You might be thinking, “Isn’t there a better or more original option out there?” Or maybe you have been told and are not sure what the big deal is with ERC-20.
ERC-20 is the most common standard for tokens on the Ethereum blockchain, and there is a reason for that. While launching an Initial Coin Offering (ICO), some of the biggest goals most of us have are speed, security, compatibility, and trust. ERC-20 checks all these boxes.
ERC-20 - The Universal Language of Tokens
ERC-20 is a standard on the Ethereum blockchain. In business terms, think of it like USB ports. No matter where you buy your mouse or keyboard, if it’s USB, it plugs right in. Similarly, ERC-20 tokens plug into almost every wallet, exchange, and DeFi app out there. If it is ERC-20, it just plugs in, and investors don’t have to jump through hoops.
ERC-20 Token Development - A Shortcut To Save Time and Money
Launching a brand new token on a new, custom-built blockchain may give complete control and customization. But it is expensive and time-consuming. You’d need to build your own blockchain, test it, secure it, and then pray that developers and investors actually adopt it.
With ERC-20 token development, you can skip all that. It’s like choosing to build your e-commerce site on Shopify instead of coding your own platform from zero. You get an established, secure, and widely adopted infrastructure to build your token.
Gains Investor Confidence
One of the hardest parts of running an ICO is convincing investors that your token won’t get stuck in a dead end. Investors are a cautious bunch, especially in today’s crypto climate. When they see an ICO built on ERC-20, it gives them peace of mind. They know what it is, how it works, and how to interact with it. Trust goes a long way when you’re asking someone to invest in your token.
Pre-Tested Smart Contracts
ERC-20 is based on smart contracts that you can build all kinds of functionality into your token, like limiting supply, adding transaction fees, or triggering events. It’s like using open-source templates and tweaking them to fit your project.
By opting for Ethereum token development services, you’re not paying them to figure things out from square one. You’re paying them to tailor a proven system to your needs. That’s how you get reliability and customization.
It’s Secure and Less Risky
Launching an ICO is already risky. Why add technical risk by trying something unproven? ERC-20 has been around since 2015. It’s been used by thousands of projects, including some of the biggest names in crypto. That means it's gone through real-world testing, has clear documentation, and is well-understood by developers.
You Are Not Alone
The Ethereum ecosystem is massive. Developers, auditors, and investors all know how ERC-20 tokens work. That means when your ICO rolls out, you’re not building in isolation. You’re stepping into an ecosystem where support, tools, and integrations are already waiting. For a business, that’s priceless.
ERC20 Is The Foundation of the Next ICO Wave
Choosing an ERC-20 token for your ICO isn’t just a technical choice; it’s a strategic one. Especially if you’re planning to raise capital through an ICO, it puts you on the path of least resistance, highest trust, and maximum reach.
The crypto space has plenty of companies that build DeFi tokens. Pick one wisely. Above all, go with a provider that nails security and speed. Only the right Ethereum token development company can develop your ERC20 token with high security. With a team of experienced blockchain developers and smart contract developers, they help you launch smarter, raise faster, and grow your business.
