What is a White Label?
In the context of crypto, White Label refers to a business model where a company provides another company with a pre-existing cryptocurrency platform or product, with the option to brand it as their own. The platform or product can be customized to meet the specific needs and requirements of the second company, but the underlying technology and infrastructure remain the same.
The main advantage of white labeling in the crypto industry is that it allows smaller companies or organizations to enter the market and offer cryptocurrency-related services or products without having to invest in the development of the technology from scratch. By using a white-label solution, they can quickly launch their own crypto exchange, wallet, or other similar product, and start providing services to their customers. Additionally, white labeling can also provide a cost-effective solution for companies who do not have the technical expertise or resources to develop their own technology.
Simplified Example
A white label product or service is similar to a generic or unbranded product that can be rebranded and sold by another company as their own. An example of this in a different industry could be a supermarket selling store-branded products, such as pasta sauce or cereal, which are made by a third-party manufacturer and packaged with the supermarket's own branding. This allows the supermarket to offer a range of products under their own name, without having to invest in product development and manufacturing themselves.
History of the Term "White Label"
The term "white label" has an uncertain origin but is thought to have emerged in the early 20th century, potentially within the realms of packaging and manufacturing. Initially, it referred to products manufactured by one company but sold under the branding of another, enabling the manufacturing-focused company to delegate branding and marketing responsibilities to the selling entity. The term gained broader recognition in the 1970s and 1980s with the rise of the IT industry. During this period, software companies pioneered white label solutions, allowing other businesses to rebrand and market their software as their own. This approach proved popular as it provided companies with the opportunity to diversify their product offerings without the need to develop software independently from the ground up.
Examples
Crypto Exchange Platforms: Many smaller crypto exchanges use white label solutions to offer their services to customers. This allows them to enter the market quickly and offer a range of crypto trading options, without having to build their own trading platform from scratch.
Mobile Wallets: Many companies offer white label mobile wallets to other organizations, allowing them to offer their own branded wallet to customers. This can include custom features and integrations, as well as a branded user interface.
Payment Processing Solutions: White label payment processing solutions can be used by companies to provide cryptocurrency payment processing services to their customers. This can include point-of-sale systems, online payment gateways, and other similar services. The underlying technology is provided by the white label solution provider, allowing the company to focus on marketing and customer acquisition.