In 2018, there is a lot of boom in the cryptocurrency such as Bitcoin, Ethereum, Litecoin and ripple. It has gained a public eye and people started to invest more and more in cryptocurrency. One aspect of digital currency revolution that benefited from this growth is ICO or Initial Coin Offering.
Are you planning to launch an ICO?
Launching an ICO is an important mark of success but there are hurdles that come in the way of it. It is essential to move out of them and launch it successfully. You can also check 7 Steps to launching a successful ICO before investing.
In this post, you will come to know about the complete process on how to launch a successful ICO.
What is ICO and how does it work?
ICO is also known as crowdsale. It is a tool for start-ups to gather the funds for their project offering cryptocurrency for sale in advance to investors. Investors receive the digital tokens at very less price in exchange for financing the project. Investors expect to skyrocket of the value over the time. They have the choice to sell the tokens at higher prices.
Here is how ICO works. Let’s imagine startup creates a new product based on the public and private blockchain. It decides to determine the value of funds needs to raise the startup. But this value varies according to dynamics of cryptocurrency market.
Elements to Launch Successful ICO
Team members are the first thing investors look during investment. The team having previous experience helps in building the trust. You should hire the members of the team who have knowledge of blockchain technology and cryptocurrency network.
There should be a core team of advisors having the technical expertise to add the value to your project. They should not be popular faces but can convey the message to your investors. This will help the investors to make the decision of whether to invest or not.
This is the most important document of presenting the ICO. It guarantees the growth and credibility for the investors. It explains the in-depth detail of your project. There is a problem and proposed solution and answers for the queries investors may have before investing. Some companies release position paper having the technical details of the project. It is a clear 2-3 argument page paper to get the feedback from the community to develop the technical white paper later on.
If you have decided to raise the funds for the development of project then release the roadmap. Explain all the benefits investors have when they invest the money in the project. Share all the milestones for the next years in the project.
Buyers wish to know the terms of the token sale before investing. Explain them clearly of how much funds will be kept for the particular duration and if there are any soft or hard cap.
Step by Step ICO Launching Process
If you’re new to ICO then this process will help you to know all the details about ICO. You can also check the ask.fm 2.0 for further information
Step 1 – White Paper
This is an important document for launching the ICO. There should be a problem and proposed workable solution for it. It should contain all the answers to the possible questions of investors.
Step 2- Purpose of your token
Choose the symbol of token which is easy to remember. You should define the soft and hard cap in the ICO. People are weary about the uncapped ICOs so make sure you use the proper cap.
Step 3- Terms & Conditions
Decide the terms and conditions of ICO. You should decide who can contribute and who can’t. Explain in it that how you will spend funds and how you distribute tokens.
Step 4- Build a Great Team
Develop a high-class team as it will develop the credibility in the investors. They should be expert in blockchain technology and cryptocurrency network.
Step 5- Token Technology
Choose the appropriate token for launching the ICO. Ethereum is so far the widely used token. There are other tokens to choose but they are not in crowd sale solution.
Step 6- Execution Plan
Decide a well structured and organized plan to sale the token. Remember there is a different discount structure in the pre-sale, ICO and general sale in every stage of launching the ICO.
Step 7- Website
Your website should clearly define instructions to contribute to raising the funds for your company. Many sites have login system where they can upload or download the documents.
Step 8- Marketing
There is a need for brand awareness and also marketing campaigns to make the investors aware of the ICO and its investment. You can market on social media channels and ICO website listing.
This is the comprehensive explanation on how to launch a successful ICO. Refer it before you invest in the company.