ICO (Initial Coin Offering) is one of the well-known methods of crowd-funding used by startups. They raise money for their different projects by selling valuable tokens to investors in exchange for fiat currency or other cryptocurrencies on a public blockchain infrastructure. Secondary tokens can also be issued which would represent some security such as an equity share or a debt instrument.
➼ They are decentralized with no authority to regulate them.
➼ It’s functioning largely depends on blockchain Smart contracts that execute transactions, processes orders and stores details of the agreements between exchanges and investors.
➼ Agents such as brokers or stockbrokers are absent which enable investors to directly deal with the platform.
Anyone from any part of the world can have access to it using the Internet.
➼ Investors are not limited by any conditions during the purchase of the offered tokens.
• Undertake market research - It is important to understand if ICO is needed for a business. Since there are a large number of cryptocurrencies in the market, the focus should be on making the offering as unique as possible. Study the behaviour of the target audience and analyze the competitor’s strategies to capture the market.
• Comply with the different regulations - Only some countries in the world are friendly towards ICO’s. It is essential to stay on the right side of the law which varies from one jurisdiction to another. Some nations such as China and South Korea have banned ICO’s because of the increase in the number of scams and to protect investors. Since regulations keep changing according to government policies, it is important to keep a constant eye on them.
• Creating the whitepaper - It is a technical document that contains all information about a project. The whitepaper must be prepared by experts who have great market knowledge. The roadmap of the firm and the different stages involved will be mentioned. Effort must be made to get maximum attention from potential investors. Certain terms and conditions will also have to be included. Information about the team members must be disclosed. The distribution strategy for tokens should be clearly written.
• Establishing an Investor dashboard - Since investors are crucial for conducting transactions and maintaining regular activity on the platform, they must be kept satisfied. Creation of a dashboard will help in solving their doubts and queries. The dashboard must contain information about pricing, benefits of tokens, access to new features, and details about revenue distribution.
• Fixing the price of a token - An appropriate price must be fixed for the token. It will play a major role in determining the total funds raised. Price can be changed according to the market situation and inflow of investments. The tokens should add value to the investor’s portfolio. It must be shareable and supplied adequately for increasing the returns.
• Development of wallets - Wallets is used for storing the coins and tokens of investors safely. It must be secure with top-notch data protection to prevent mismanagement of funds. Different versions of the wallet should be created to suit various devices.
• Form an experienced team - An ideal team must have a mix of developers, managers to handle daily operations, a technological team with knowledge in multiple programming languages to handle glitches, experts with good knowledge of payment processes and portfolio management, and marketing specialists who have an in-depth understanding of different multi-media channels.
• Compatibility with multiple platforms - The interface of leading blockchain technology providers must be included for improving the overall trading experience. Details such as Bitcoin blocks, addresses, and transactions must be provided.
• Customer support services - Prospective investors are bound to have lots of queries, and doubts. A responsive customer support team with adequate technical knowledge is needed for higher user retention. Constant communication must be provided to investors and other merchants about price fluctuation, and market movements for managing risks better.
• Create an ICO website - It must consist of information about the team members, links to social media profiles, subscription form for new users, the roadmap of the company and availability of cryptocurrencies. A separate page must be created to display the whitepaper. Ensure that the website is protected from hacking and phishing. If the ICO is going to be launched in multiple countries, hire translators for modifying the content.
• Report preparation - Periodical reports must be created for analyzing the effectiveness of an ICO’s operations. The performance on different exchanges should be reviewed. A firm would know the areas to improve through the analysis provided in the reports.
• Launching your ICO on an exchange - Provide a unique name for your coin, an attractive logo, a short description of your token, payment of compliance fees and fix the official date and time of launch for your ICO.
Follow all the above guidelines with due diligence for grandly launching your ICO in the market. Reach out to the accomplished developer for getting profitable and feasible solutions for your business.