One of the greatest advantages that blockchain has brought about is in making the process of fundraising simple and straightforward. This has been effected through Initial Coin Offerings, commonly abbreviated as ICOs.
ICOs offer a lot of advantages that make it a better option than the classical ways of raising funds through banks and investors. This has come in as a big boon for small companies that might not be able to afford the time and money it needs to take the traditional route. Apart from this, ICOs offer a lot of advantages including diversifying the portfolio of investors and giving global reach. The companies that offer ICOs can also take advantage of digital marketing platforms.
There is no question that ICOs offer a great avenue to raise funds. However, before you embark on your journey to do so, it is important to know the steps that are involved in successful ICO development.
➼ It is essential to outline the project idea in a way that will influence people into investing in your project.
➼ ICOs usually issue tokens. A token is a representative unit that can entitle its owner to payments, utilities or voting rights. It is important to define the token and its functionalities. The token should be related to the product and it is better if a token symbol is also selected.
➼ There might be a certain number of tokens that are issued but not all tokens make it to the ICO. Some of the tokens are generally retained by the company. Also, it might not be a great idea to sell all your tokens to a few investors. This will ensure that your tokens are not stuck with a few users and will also increase the magnitude of engagement.
➼ You need to have a proper team in place. You can hunt for the right team on social media platforms or by emailing the prospects. However, rather than just stopping with a cold conversation, it is a good idea to take it forward on a one-on-one level either on Skype or by meeting face to face.
➼ Writing a white paper is the most important aspect of your cryptocurrency startup. The white paper defines what your project and venture are about. It also gives critical details like the budget, the accepted currencies, the duration of the ICO campaign and the milestones. The white paper gives a blueprint of what your project is. It should be composed in a way that attracts and influences people to invest in your project. It is to be understood that the white paper would be read by hundreds of people who are well versed in the finer aspects of cryptocurrency. There is a good chance that a mediocre white paper and the project can be criticized by experts if it does not seem credible in their eyes. You can also consider outsourcing the creation of white paper to expert ICO advisors. They will proofread and point out the lapses if need be.
➼ The next step is to create a website for ICO. The website has to contain all the details about the token, the team members and the milestones. The website should not compromise on aspects like usability and responsiveness.
➼ You will need to create a smart contract. A smart contract is a self-executing program that executes itself upon the fulfillment of certain conditions. Most of the smart contracts for ICOs are in Ethereum blockchain and are coded using a language called Solidity.
➼ Marketing your ICO is the final process. This will determine the reach and profitability of your ICO. There are different ways in which you can market your ICO. You can use dedicated forums like Bitcointalk or you can go for generic, high-engagement platforms like LinkedIn. There are also auxiliary platforms like Facebook, Twitter, Reddit, Medium and GitHub. In addition to this, you can also use messaging platforms like e-mail, Telegram, and Slack.
In addition to the platforms listed above, you can also use offbeat methods like bounties and airdrops. Bounties encourage people to perform certain tasks to perfect your product or ICOs in exchange for tokens. Airdropping helps you capitalize on influencers who will spread the word about your token if they are given some for free.
ICO has surely revolutionized the way in which crypto companies raise their capital. With the right documentation and processes in place, your company can surely reap the benefits of raising funds through an ICO. Blockchain App Factory is an ICO development company that can give you the right technical and strategic assistance in launching the perfect ICO for your company.