An initial coin offering (ICO) is where startups launch crowdfunding campaigns to raise funds through digital means. An ICO is a digitally enabled crowdfund, which sells an idea to investors. Investors, in turn, buy your tokens in order to raise funds for that product.
Before you launch an ICO, you have to know what an ICO stands for and what you are required to satisfy in order to make it a success. It is estimated that, on average, one ICO is launched every day. However, not all these ICOs become successful in future as most of them either do not raise the required funds or end up crashing when they start trading. To successfully launch an ICO, you can follow the criterion below.
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Evaluate Whether You Need An ICO For Your Startup
Just because you have a startup, that requires funding, it does not mean that you need an ICO. For example, if you have a token which is expected to fund a particular product through token sale, then they have to be interrelated. In short, the token has to add some significant value to the product besides just funding it. If not, then you may not need to launch the token sale as it might not be able to stand the test of time. In that case, when building a product on the blockchain network, you have to consider that factor to increase the success rate of your ICO.
Have A Credible And Efficient Team For Your ICO
A few years back, launching an ICO did not require much as the blockchain technology was not as defined as it is today. However, with many regulations and laws to satisfy, you will need a strong team leading your ICO. You need a legal team to take care of the legal framework, marketing team, and finance team to help you with the pricing of the token based on your target. Look for a team with experience in successfully spearheading ICOs in the past.
Prepare A Detailed Whitepaper
A whitepaper is one of the most important things to have when launching an ICO. It can determine whether your ICO will be a success or not. Investors will first read the whitepaper before they can make a decision on whether to participate in your token sale or not. A whitepaper is a document that contains the blueprint of the product for which you are selling the tokens. It entails in-depth details of the product, unique solutions it brings to the major problems of the world and the milestones it intends to achieve within a particular time frame.
After preparing a whitepaper, you have to present it to the investors in an appealing way enticing them to participate in your project. Make sure that your presentation looks professional. If you are not an expert in making a corporate presentation, consider hiring presentation design experts like Presentation Geeks who have industry expertise to create unique presentations that capture the interest of the target audience.
Have A Solid Marketing Strategy For Your Token Sale
Just like any business idea that you seek for investors to invest in, you have to market it thoroughly. Marketing is one of the best ways of creating a buzz long before the launch date of the ICO. There are multiple ICO platforms where you can spread the news:
- Telegram
- Bitcointalk
Find Popular ICO Exchanges To Trade Your Token
The type of ICO exchange, where your token is listed or trading, will determine its success. To ensure you get your token in the most reputable exchanges, maintain transparency for your ICO and meet all the requirements in full. That way you will raise your chances of your ICO being accepted by popular exchanges and listed accordingly as a token.
The Way Forward
The way startups raise funds for their projects is drastically changing thanks to ICOs. However, with tighter regulations and compliance needed, it will not be as easy to launch an ICO in 2018 as it used to be a couple of years back. Even with all that, a new wave of crowdfunding has hit the market, which will give rise to new regulations and a revamp of the financial and business sectors.
If you are interested in even more cryptocurrency-related articles and information from us here at Bit Rebels the we have a lot to choose from.
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