Moreover, many organizations require only basic tokens; they adopt the risk of Ethereum’s Turing complete programming language without taking advantage of many of its benefits.
While Ethereum has the most expressive programming capabilities, Stellar is the best choice for ICOs that require simple and secure smart contract features. Stellar’s primary goal is to facilitate issuing and trading tokens, especially those tied to legal commitments by known organizations, such as claims on real-world assets or fiat currency.
Among key benefits of Stellar for ICOs:
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Stellar offers a simple, easy-to-use built-in token issuance system that is accessible to anyone.
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Stellar offers built-in token capabilities that can support multi-signature authorizations, generate dividends, limit who can hold tokens, impose lockup/vesting periods, and more.
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Stellar features a decentralized exchange where any Stellar network token can be instantly traded without relying on a third-party exchange to list the token. This means newly issued tokens can be traded on Day 1. Any token created on Stellar can be bought and sold immediately on Stellar’s decentralized exchange by means of Stellar’s native offer mechanism. An organization does not have to rely on a third-party exchange like Bittrex or Poloniex to list or make the market for them.
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In addition, from a security point of view, Stellar’s model of atomic multi-operation transactions leads to more auditable code, limits uncertainty, and decreases the risk of harm from bad actors who may exploit program vulnerabilities. Moreover, Stellar optionally allows issuers to reserve the ability to freeze tokens in the event there is misuse.
Stellar is an excellent choice for any ICO that does not require Turing-complete smart contracts and can benefit from immediate creation of a secondary market.