Basics of an ICO
When a cryptocurrency start-up wants to raise funds using ICO, it first creates a plan stating the aim of the project, what it needs for a successful completion, how much money is needed, the amount of the virtual tokens the project developers will keep for themselves, what kind of money would be acceptable, and what the duration of the ICO campaign would be. During the campaign, interested parties buy some of the circulated cryptocoins with fiat or virtual currency. These coins are recognized as tokens and resemble the shares of a company which are sold to investors during an IPO.
If the funds raised throughout the ICO campaign does not touch the limit of minimum funds required by the firm, the money is given back to the parties who bought the coins and the campaign is considered to be a failure. If the requirement of the funds is fulfilled within the given time period, the money is used to either start the new project or to finish it.
How to launch an ICO?
1. Develop an idea and make sure your project really needs an ICO
First, you would need to develop an idea, offering a solution that is in demand in the current market scenario. The idea should be better than what your competitors might be offering. You must have a better understanding of the market and your target audience. Before you move further, you need to make sure that your project really needs an ICO campaign or it might not be able to attract the funds.
2. Identify your competitors
Current market conditions are very competitive, no matter what the industry is. It is important that you know your competition. If the investors think that your competitor has something more to offer, you might lose them. Make sure you are offering something more than your competitors to raise funds successfully.
3. Know all about legalities regarding ICOs in your country
ICOs are the highly regulated facet of cryptocurrencies at the moment. This is because there have been many scams where ICOs were shut down and developers disappeared with the money. Though, in many countries, ICOs are legal and are regulated diligently based on rules and regulations. So, collect the information about your country’s rules and regulations regarding ICOs and then move forward. Also, keep track of any possible changes in rules pertaining to ICOs in the future.
4. Build an ICO token
Next, you would have to build an ICO token and build a strong distribution plan. It would be like your whole campaign and project would be depending on it to function. Decide in advance how many tokens you would be issuing and how many you would be keeping for yourself and your team members.
5. Prepare a White Paper
A white paper is generally a technical document describing the details regarding your complete project with every possible detail. Preferably, it should share everything including market research and analysis, idea and vision of the project, development strategies, design and aims, information about token and distribution, legal matters, obtainable resources, team description, and so on.
6. Launch a website
Next, launch a website and updated content. Share information like team details, objectives of the project, and more. People are more interested in who you are, what you are doing, and how you will ensure the protection of investors’ money. Add high- quality photos, team’s skills, links to social media and more. Make it a user-friendly and responsive website with an attractive layout.
Once you have taken care of all the details, it’s time to promote the campaign. Otherwise, how your target investors will know about it and get interested in investing in it. So choose the right means and invest sufficient funds to market your campaign and attract the investors. You can do it through social media, email, and more.
8. Launch an ICO
Now, your ICO campaign is running and inviting the investors to invest the money in your project.