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How to Launch a Successful ICO?

Posted on by Bhavya Dave

How to Launch a successful ICO?

The world of cryptocurrency and blockchain technology has witnessed remarkable growth over the past decade. This exponential rise has not only attracted the attention of tech enthusiasts but has also given birth to a new form of fundraising called Initial Coin Offerings (ICOs). ICOs have become a popular means for blockchain projects to raise capital and fuel their development. However, launching a successful ICO is no small feat and requires careful planning, strategy, and compliance with regulations.

In this comprehensive guide, we will delve deep into the intricacies of launching a successful ICO. From understanding the fundamentals of ICOs to navigating the legal and marketing aspects, we will provide you with a roadmap to embark on your ICO journey. Whether you’re a blockchain startup looking to fund your project or an investor considering participating in an ICO, this guide will equip you with the knowledge and insights needed to make informed decisions and maximize your chances of success.

Understanding ICOs

Initial Coin Offerings (ICOs) have emerged as a groundbreaking fundraising method in the realm of blockchain and cryptocurrency. An ICO allows blockchain startups and projects to raise capital by offering digital tokens to investors in exchange for cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). These tokens serve various purposes within the project’s ecosystem, from providing access to ico launch services to representing ownership shares.

What is an ICO?

Initial Coin Offerings (ICOs) represent a groundbreaking method of fundraising within the cryptocurrency and blockchain sphere. Essentially, an ICO is a fundraising mechanism that enables blockchain projects to acquire capital by issuing digital tokens to investors. In return, these investors provide established cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH). These tokens serve a multifaceted role within the project’s ecosystem, granting access to services and often symbolizing ownership shares.

The term “ICO” bears a resemblance to the traditional Initial Public Offering (IPO) in the financial world. However, there are crucial distinctions between the two. While an IPO involves the issuance of shares in a company to the public, an ICO issues tokens that can serve various purposes, from granting access to a platform’s features to enabling participation in a decentralized network’s governance.

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History of ICOs

The history of ICOs is a testament to the rapid evolution of the blockchain and cryptocurrency landscape. The concept of ICOs took its first steps with the Mastercoin project in 2013, marking the inception of this innovative fundraising model. Mastercoin successfully raised over 4,700 Bitcoins (BTC), which at the time equated to millions of dollars in value. This inaugural ICO served as a trailblazer for future projects aiming to secure funds via token sales.

The real game-changer arrived in 2014 with Ethereum’s ICO. Ethereum, a blockchain platform designed for decentralized applications (dApps) and smart contracts, conducted an ICO that raised approximately $18 million. Ethereum’s successful funding campaign highlighted the potential of ICOs as a means to acquire substantial capital for blockchain development.

Read Our Blog: What are the Essential Things to Know for an ICO?

How Does an ICO Work?

The mechanics of an ICO involve several key components. First, a blockchain project is conceptualized, and its development team creates a whitepaper outlining the project’s goals, technical details, and tokenomics. The project’s team and advisors play a crucial role in gaining investor trust.

Once the whitepaper is ready, the project conducts a marketing campaign to generate interest and awareness. Investors participate in the ICO by sending funds, typically in cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), to the project’s designated wallet address. In return, they receive the project’s native tokens at a predetermined rate. These tokens may represent ownership in the project, provide utility within the ecosystem, or both.

Benefits of ICOs

Benefits of ICOs

ICO participants are drawn to this fundraising model for several reasons:

  • Access to Capital: For blockchain startups and entrepreneurs, ICOs provide a direct route to capital without the need for traditional venture capital or bank loans. This democratizes fundraising and opens up opportunities for projects around the world.
  • Global Reach: ICOs can attract a global pool of investors, allowing projects to reach a diverse and geographically dispersed audience. This global reach can result in a more diverse and engaged user base.
  • Liquidity: Tokens issued through ICOs often become tradeable on cryptocurrency exchanges shortly after the fundraising campaign. This liquidity provides investors with the ability to buy or sell tokens, enhancing market dynamics.
  • Token Utility: ICO tokens typically serve a specific purpose within the project’s ecosystem. They can represent access to a platform’s features, ownership of digital assets, or voting rights. This utility adds intrinsic value to the tokens.
  • Innovation: ICOs have fueled innovation in the blockchain space, giving rise to a multitude of projects exploring novel use cases, from decentralized finance (DeFi) and non-fungible tokens (NFTs) to supply chain management and more.

Read Also: 7 Most Successful ICOs of All Time

Risks of ICOs

However, ICOs also come with inherent risks:

  • Regulatory Uncertainty: The regulatory environment surrounding ICOs varies by country and can change rapidly. This uncertainty poses legal and compliance risks for both project founders and investors.
  • Fraud and Scams: The nascent nature of ICOs has made them susceptible to fraudulent schemes and scams. Investors must exercise caution and conduct thorough due diligence before participating in any ICO.
  • Market Volatility: The cryptocurrency market is highly volatile, and the value of ICO tokens can fluctuate significantly shortly after listing on exchanges. This volatility can impact investor returns and confidence.
  • Lack of Investor Protection: Unlike traditional financial markets, ICOs often lack the investor protections provided by regulatory agencies. Investors may have limited recourse in the event of disputes or project failures.
  • Project Viability: Not all ICO projects are successful in delivering on their promises. Investors face the risk of backing projects that fail to achieve their objectives, resulting in loss of capital.
  • Hype and Speculation: FOMO (Fear of Missing Out) and speculative behavior can drive up token prices during ICOs. This hype-driven environment can lead to irrational investment decisions.

In the following sections, we will explore the steps involved in launching a successful ICO, including the preparation phase, the actual ICO launch, post-ICO activities, legal considerations, and emerging trends in the ICO landscape.

Preparing for Your ICO

Preparing for Your ICO

Before embarking on an ICO journey, meticulous preparation is essential. This phase involves developing your blockchain project, assembling a skilled team, addressing legal considerations, crafting a comprehensive whitepaper, designing tokenomics, and building a community of supporters.

  • Developing Your Blockchain Project

The foundation of a successful ICO lies in the development of a compelling blockchain project. This phase involves ideation, conceptualization, and technical planning to transform your vision into a tangible product or platform. 

Developing your blockchain project is a foundational step that sets the stage for the rest of your ICO journey. A well-conceived and technically sound project is more likely to garner investor interest and support. Once your project reaches a certain level of maturity, you can proceed to the next steps in preparing for your ICO.

  • Assembling Your Team

Building a capable and dedicated team is pivotal to the success of your ICO and blockchain project. The individuals you bring on board should possess the expertise and experience needed to navigate the complexities of blockchain technology, finance, marketing, and legal compliance.

Assembling a well-rounded team with the right mix of skills and expertise is a critical step in preparing for your ICO. Each team member should be aligned with your project’s vision and dedicated to its success. With a strong team in place, you can tackle the multifaceted challenges in the launch of your ICO.

Check Our Blog Post: Top 6 ICO Platforms You Can Trust

  • Legal Considerations

Navigating the legal landscape is essential to avoid regulatory issues in your launch ICO journey. Legal considerations may include the incorporation of your project, compliance with securities regulations, and Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. Consult with legal experts who specialize in cryptocurrency and blockchain to ensure compliance with local and international laws.

Navigating the legal landscape is essential to the success of your launch ICO. Legal considerations encompass a wide range of factors, from the structure of your token sale to regulatory compliance.

  • Whitepaper Creation

A well-crafted whitepaper is the cornerstone of your launch ICO. It should provide a comprehensive overview of your project, including its objectives, technical details, tokenomics, use cases, and roadmap. A clear and transparent whitepaper builds trust with potential investors. Ensure that it addresses the “why” and “how” of your project, explaining its value proposition and how it aims to solve real-world problems.

A well-structured and informative whitepaper can instill confidence in potential investors and help them make informed decisions. It serves as a foundational document that aligns stakeholders with your project’s vision and objectives.

Read Our Blog Post: ICO vs. STO: What’s the Difference?

  • Tokenomics and Smart Contracts

Tokenomics refers to the economics of your project’s token ecosystem. It encompasses various aspects related to the creation, distribution, and utility of tokens within your project. Designing a robust tokenomics model is essential for the success of your ICO.

Creating a well-balanced tokenomics model requires a deep understanding of your project’s goals and user base. It should align with your whitepaper’s objectives and provide a clear value proposition for token holders. Moreover, smart contracts play a crucial role in implementing and automating the tokenomics rules you define.

  • Building a Community

Building a strong and engaged community is a fundamental aspect of preparing for a successful ICO. A supportive community not only provides initial backing but can also contribute to the long-term success of your project.

Building a community is an ongoing effort that requires dedication and active engagement. A vibrant community can become a powerful advocate for your project, attracting more participants and supporters as you move closer to your ICO launch.

Launching Your ICO

Launching Your ICO

The ICO launch phase involves selecting the right platform, structuring your token sale, crafting marketing and public relations strategies, implementing security measures, conducting smart contract audits, and ensuring everything is in place for a smooth ICO launch.

  • ICO Platform Selection

Choosing the right platform to launch your ICO is a critical decision that impacts your fundraising success. The platform you select should align with your project’s goals, target audience, and technical requirements.

When selecting an ICO platform, assess factors such as transaction costs, network congestion, developer community, security features, and the platform’s track record with previous ICOs. Additionally, consider the preferences of your target audience, as some investors may have platform-specific preferences.

  • Token Sale Structure

The structure of your token sale plays a pivotal role in attracting investors and determining the success of your ICO. Different token sale structures cater to various objectives and investor profiles.

The choice of token sale structure should align with your project’s funding needs, timeline, and strategic goals. Additionally, transparently communicate the structure and terms to potential investors through your whitepaper and marketing materials.

Read Our Blog: What are Some of the Benefits of an ICO?

  • Marketing and PR Strategies

Effective marketing and public relations (PR) strategies are essential for creating awareness, generating interest, and building trust around your ICO. A well-planned marketing campaign can attract a diverse pool of investors.

Developing a comprehensive marketing and PR strategy requires a deep understanding of your target audience and their preferences. Tailor your approach to effectively communicate your project’s value proposition and engage potential investors.

  • Security Measures

Security is paramount throughout the ICO process to protect your project, team, and investors from potential threats and vulnerabilities. Implementing robust security measures can prevent security breaches and instill confidence in your community. 

By prioritizing security at every stage of your ICO, you can create a safe and trustworthy environment for both contributors and your team. Transparency and proactive communication regarding security measures can also instill confidence in your community.

  • Smart Contract Auditing

Before launching your ICO, it’s essential to audit your smart contracts thoroughly. Smart contract audits help identify vulnerabilities or errors that could compromise the security of your token sale. Hiring reputable smart contract auditors or firms is a critical step in ensuring the integrity of your ICO.

Smart contract audits are a crucial component of ICO security. They help identify and mitigate vulnerabilities that could be exploited by malicious actors. Demonstrating a commitment to smart contract security can attract investors and foster confidence in your project.

Read Also: Top 10 ICO Development Companies 

  • Preparing for the ICO Launch

As the launch date approaches, ensure that all systems are in place for a smooth ICO launch. Test your ICO platform, conduct mock token sales, and prepare customer support resources to address inquiries and issues. Make necessary arrangements to handle the high volume of transactions and participants expected during the ICO.

Preparing for the ICO launch requires meticulous attention to detail and a focus on both technical and logistical aspects. A well-executed launch sets the stage for a successful fundraising campaign.

Conducting Your ICO

Conducting Your ICO

Once your ICO is launched, it’s crucial to manage various aspects, including the launch date and duration, reaching your target audience, KYC and AML compliance, token distribution, and post-ICO management.

  • Launch Date and Duration

Selecting the right launch date and duration for your launch ICO is strategic. Consider factors like market conditions, investor sentiment, and potential competition with other ICOs. Determine the duration of your ICO sale, which can vary from a few days to several weeks, and set a clear end date.

The timing of your ICO should align with your project’s goals and the broader market conditions. It’s important to strike a balance between creating urgency and allowing sufficient time for participation.

  • Reaching Your Target Audience

Effective communication with your target audience is key to a successful ICO. Continue engaging with your community and addressing questions and concerns. Leverage email marketing, social media, and advertising to reach a broader audience. Collaborate with influencers and crypto-related media outlets for additional exposure.

Building a strong and engaged community plays a pivotal role in reaching your target audience. Regularly update your community on project developments, milestones, and important announcements.

Read Our Blog: Which are the Best ICO Listing Websites Out There?

  • KYC and AML Compliance

Compliance with KYC and AML regulations is essential for ICOs to prevent fraudulent activities and money laundering. Implement robust KYC procedures to verify the identity of participants and conduct necessary due diligence. Partner with KYC service providers if needed to streamline the process.

KYC and AML compliance are critical for creating a transparent and secure ICO environment. Properly vetting contributors helps prevent fraudulent activity and promotes trust among investors. Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance measures are essential to ensure the legitimacy of contributors and protect your project from potential legal issues.

  • Token Distribution

After the ICO concludes, distribute tokens to participants as per the terms outlined in your whitepaper and smart contracts. Ensure transparency in the distribution process and keep participants informed about the status of their token allocations. Be prepared to address inquiries and provide support during this phase. 

Managing contributions effectively is crucial for maintaining trust and accountability. Clear communication and transparency regarding the management of funds are essential. Managing contributions and funds during your ICO requires careful planning and execution. Implementing secure and transparent procedures is essential to maintain trust with contributors.

  • Post-ICO Management

The post-ICO phase is crucial for project development and maintenance. Focus on delivering on your project’s promises, meeting roadmap milestones, and engaging with your community. Regular updates, transparency, and active communication with investors contribute to building trust and credibility.

Post-ICO activities are critical for delivering on your project’s promises, building trust, and ensuring the long-term success and sustainability of your blockchain venture.

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Conclusion

In conclusion, the journey of launching an ICO that is successful is an intricate one that demands meticulous planning, rigorous execution, and unwavering dedication. As blockchain technology continues to evolve, ICOs remain a vital avenue for funding innovative projects and solutions. The significance of this fundraising mechanism lies not only in capital generation but also in creating opportunities for groundbreaking ideas to flourish.

Throughout this comprehensive guide, we have delved into the intricacies of ICOs, from their inception to the multifaceted process of preparation, launch, and post-ICO activities. We’ve explored the critical aspects of developing a blockchain project, assembling a proficient team, addressing legal considerations, crafting a compelling ico whitepaper, defining tokenomics, and nurturing a robust community.

Launch an ICO involves crucial decisions, such as selecting the right ICO platform, structuring the token sale, implementing marketing and security strategies, and ensuring compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Additionally, post-ICO activities, including token distribution, exchange listings, community engagement, and project development, are instrumental in fulfilling your promises to investors and users alike.

As the ICO landscape evolves, adaptability and compliance with regulatory changes are paramount. The blockchain industry continues to witness innovations like Security Token Offerings (STOs) and the integration of Decentralized Finance (DeFi) into fundraising mechanisms, opening new horizons for blockchain entrepreneurs.

At SoluLab, we recognize the transformative potential of ICOs in the world of blockchain technology. As a leading provider of ICO development services and solutions, we are committed to guiding you through every phase of your ICO journey. Our expertise in white label ICO platform development and white label ICO exchange platforms enables you to raise the question of how to launch an ico with confidence, leveraging the latest technologies and best practices.

In the ever-evolving blockchain ecosystem, success in launching an ICO hinges on embracing innovation, fostering transparency, and engaging with your community effectively. Your ICO is not merely a financial endeavor; it’s an opportunity to create lasting value and make a meaningful impact. With the right approach, you can navigate the challenges, achieve your fundraising goals, and contribute to the ongoing evolution of blockchain technology. SoluLab is here to support you every step of the way.

FAQs

1. What is an ICO, and how does it differ from other fundraising methods?

An Initial Coin Offering (ICO) is a fundraising method that involves issuing digital tokens or coins to investors in exchange for capital. It differs from traditional fundraising methods, such as venture capital or initial public offerings (IPOs), as it leverages blockchain technology and offers tokens with specific utilities within a project or platform.

2. What are the key steps to launching a successful ICO?

Launching a successful ICO involves several key steps, including project development, assembling a team, addressing legal considerations, creating a whitepaper, defining tokenomics, choosing an ICO platform, implementing marketing strategies, and ensuring security measures.

3. What is a white label ICO platform, and why is it important?

A white label ICO platform is a pre-built, customizable solution that enables entrepreneurs to launch their ICOs without developing the entire platform from scratch. It saves time, reduces costs, and provides access to essential features and functionalities required for a successful ICO.

4. How can I ensure compliance with regulations during an ICO?

Compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations is crucial during an ICO. Implementing robust KYC/AML processes, partnering with legal advisors, and staying informed about regulatory changes are essential steps to maintain compliance.

5. What are some common challenges faced during ICO launch?

Common challenges during an ICO launch include building investor trust, attracting a substantial user base, addressing security concerns, and adapting to evolving regulatory landscapes. Managing these challenges effectively is vital for a successful ICO.

6. Are there alternatives to ICOs for fundraising in the blockchain space?

Yes, there are alternatives like Security Token Offerings (STOs) and Initial Exchange Offerings (IEOs), each with its own set of rules and regulations. STOs, for example, involve tokens backed by real-world assets, providing additional security to investors.

7. How can SoluLab assist in launching a successful ICO?

SoluLab offers comprehensive ICO development services and solutions, including white label ICO platform development and white label ICO exchange platforms. With our expertise and guidance, you can navigate the complexities of ICOs, from planning to execution, to achieve a successful fundraising outcome.

7 Most Successful ICOs of All Time

Posted on by Shipra
7 Most Successful ICOs of All Time

There are many factors that contribute to the success of ICOs. It could be the distributed ledger technologies upon which they are primarily founded or the ease with which they can be moved across international and governmental borders. Despite the increase in ICOs, “the Bitcoin explosion” left a gap that hasn’t been filled. What will be “the next bitcoin,” or who will it be? What will the cryptocurrency industry’s next big thing be? Maybe the future will make it clear.

We suggest that you carry out the proper research and study the company’s white paper if you have any interest. To help with your investigation, you may wish to check into the most successful ICOs. So let’s discuss the 7 most successful ICO initiatives that have, in no particular order, generated results with a certain degree of success.

Read Also: Top 10 ICO Development Companies in 2023

What is an ICO?

The road to growth for conventional businesses is very predictable. Most businesses start off modest and grow as their profits rise. Companies usually turn to outside investment via transferring a portion of ownership in exchange for a quick infusion of cash. And businesses frequently “go public,” or give a share of the business (also known as stock) to investors on the open market in exchange for their money, by way of an Initial Public Offering, or IPO.

An Initial Coin Offering (ICO) is essentially comparable to a traditional initial public offering (IPO) in the world of cryptocurrencies. Companies raise money for their projects through ICOs, often referred to as crowd sales / token sale occasions, by releasing cryptocurrency to prospective buyers in the shape of crypto tokens.

What Factors Contribute to an ICO’s Success?

So, during the past several years, the ICO industry has experienced incredible growth. But what were some of the factors that contributed to this story’s success?

  • Utility: Whether the coin genuinely has good utility is one of the key success factors for an ICO. Although ICO specialists may disagree on a number of points, most concur that a coin must be more than a thing that can be purchased and traded on an exchange. The top-performing ICOs are distinguished from the countless others languishing fruitlessly in wallets or even on exchanges by their fundamental utility. An excellent way to demonstrate the usability of the ICO is to provide potential investors with a demo (or perhaps a visual model) that shows how the proposed enterprise will operate and what advantages it will provide. Furthermore, if the project is just a rehash of previous ideas, the ICO may still fail even if the coin represents a key part of the venture it is intended to support. Additionally, a reliable ICO launching platform that unites various stakeholders and offers a central dashboard can aid in ideation & customer acquisition and increase the likelihood of its success.
  • Solid Marketing, PR & Communication Strategies: Even the most innovative concept can fall short if the launch team’s PR, marketing, and communication efforts are shoddy. The likelihood of success can increase significantly if the marketing plan is comprehensive as well as the information is conveyed in an understandable manner, such as what specific problem the ICO’s project seeks to tackle. Webpages, white papers, e-newsletters, and social media accounts that are clear, succinct, and free of jargon can all be helpful in this regard. In fact, one of the main factors influencing an ICO’s influence and, consequently, its ultimate success, is its website and Alexa Rank (a measure of a website’s popularity).
  • Community Support: ICOs which are active in social media & discussion forums are likely to succeed more than those that aren’t, according to several analysts who’ve already studied past successful ICOs. Successful ICOs have, according to research by the cryptocurrency startup RAD Lending Inc., 4000-5471 Twitter/Facebook followers. Additionally, ICO teams who interact with the public on websites like Quora, Reddit, and Telegram tend to attract a larger audience of potential backers and thus have access to a larger pool of funding.
  • ICO Audits To Increase Trustworthiness: Companies that have their initial coin offerings (ICOs) audited by independent auditing advisories convey their inherent reliability to potential investors because many fraudsters and con artists occasionally utilize ICOs as a weapon to prey on overeager and ignorant investors. These audits may reveal possible problems with the ICO, such as with its corporate governance, financial model, or projections. More importantly, audits provide investors confidence, helping them see the ICO as a “non-scam” and increasing their willingness to contribute.

Read Our Blog: Top 6 ICO Platforms You Can Trust

Some Benefits of an ICO

The benefits for all parties involved are the reason that ICOs have become more and more popular. A lot of the perks for contributors also apply to founders. These advantages motivate more participants to put their money in ICOs rather than alternative options, at the very least.

  • Liquidity: Lack of liquidity is a common barrier for people seeking new investing opportunities. Capital is often unreachable for years in many possibilities. With ICOs, investors have great liquidity as well as the secondary market, which implies that real-time price is based on the project’s current value.
  • Decentralization: Everyone may be able to participate in ICOs, especially if they take bitcoins. For the majority of ICOs, the contributors’ ability to transfer money in time to make a purchase is the only prerequisite.
  • Openness: ICOs not only let anyone invest; donors can also invest whenever they choose. Contrary to conventional models of startup finance, this makes it practically impossible to be an early investor if you don’t have a personal relationship with one of the founders.

Read Also: What are Some of the Benefits of an ICO?

ICOs have a lot of reasons attributed to their success. Be it the distributed ledger technologies on which they are mostly based or the fact that they can be transferred easily across national and jurisdictional boundaries. Despite the spike in ICOs, there is still a void left after “the bitcoin explosion” that remains unfulfilled. Who or maybe what is going to be “the next bitcoin”? What will be the next big thing in the crypto world? Perhaps the future will reveal it. We advise you to conduct your due diligence and read the white paper of the company you’re interested in. However, you might want to look into ICOs that closely resemble successful ICOs of the past to aid your analysis.

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Here are the 7 Most Successful ICOs of All Time

So now as we discussed most of the ICO info, let’s discuss 7 most successful ICO initiatives that have, in no particular order, generated results with a certain degree of success:

1. NEO

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NEO is an open-source Chinese blockchain project that goes by many different names. Perhaps the most common among them are Antshares, the former official title, and the nickname China’s Ethereum. NEO not only utilizes smart contract applications but also decentralized commerce & digitized assets and identification. The company gathered huge support from the Chinese government, Microsoft Corp. (MSFT), Alibaba, and other major companies. And as a result, was able to launch a successful ICO. NEO has provided exceptional ROI for many early investors and is a non-profit, community-driven blockchain project aiming to create a “Smart Economy.”

2. Stratis

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This Stratis platform is a U.K.-based company that wishes to streamline business processes. Simultaneously reducing the complexity of Blockchain adoption and implementation. Stratis is one of the only platforms enabling full-stack utilization of Microsoft’s .NET Core Framework. The Stratis platform is well adaptable with multiple programming languages. It enables businesses to seamlessly create, design, and deploy custom applications without setting up or maintaining their own infrastructure. Furthermore, Stratis has made significant efforts to ensure that developers who lack previous experience can quickly pick up and become proficient with Blockchain technology.

3. Ethereum

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Ethereum, a prominent cryptocurrency, has emerged as a groundbreaking platform for decentralized applications with the use of smart contracts. Unlike Bitcoin, it extends beyond being just a digital currency and has captivated the corporate world. Currently valued at an impressive $713, Ethereum has seen remarkable growth since its initial coin offering (ICO) in 2014, where it raised $18.30 million. Its potential for further innovation remains untapped, making it a significant player in the crypto space with an astonishing ROI of 4,137.54x in USD, 103.70x in BTC, and 1.00x in ETH from its ICO price of $0.31.

4. Ark

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ARK is a dynamic digital currency platform that aims to provide passionate users with a solid foundation and a thriving ecosystem. Among its proprietary features is SmartBridge, an incredibly fast ecosystem enabling seamless integration of other cryptocurrencies into its blockchain. The project is supported by a distinguished team of 15 core members from 11 different countries, uniting to create a welcoming space for all blockchain enthusiasts. The ICO took place from Nov 7, 2016, to Dec 11, 2016, and successfully raised $22.00 million at an ICO price of $0.00995394. Currently in the trading stage, ARK has achieved a remarkable ROI of 36.79x in USD, 1.48x in BTC, and 0.24x in ETH.

5. Lisk

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Lisk is a widely popular ICO within the programming community, and for good reason. Developed using JavaScript and involving key members from Ethereum, Lisk stands out as the pioneer in modular blockchain-based application platforms. With its innovative SDK, developers gain access to a comprehensive set of tools, empowering them to effortlessly build their own apps and deploy them on sidechains. This streamlined process of creating blockchain applications is remarkably simple due to Lisk’s modular design, which accommodates a diverse range of blockchain technology use cases.

6. Alias

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Alias, formerly known as Spectrecoin, is an innovative privacy-focused cryptocurrency designed to safeguard users’ privacy. Its primary goal is to ensure real transactional anonymity, which is achieved through a distinctive integration of Tor within the ICO. By utilizing Tor, Alias ensures that users’ real IP addresses remain protected whenever they use the software, providing an extra layer of security and anonymity. This approach empowers users with the confidence to engage in transactions while keeping their identities and activities private and secure.

7. Cardano

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Cardano, founded by Charles Hoskinson, one of Ethereum’s co-founders, debuted with its internal cryptocurrency ADA and a market cap of $600 million. It holds the distinction of being the largest proof-of-stake cryptocurrency, solidifying its position with a market cap of $77 billion in May 2021. One of its standout features is its innovative applications, including a collaboration with electronic dance music DJ Paul Oakenfold for the release of the album “Zombie Lobster” on the Cardano blockchain. Additionally, Cardano made significant strides in improving education in Ethiopia, with IOHK and the Ethiopia Ministry of Education partnering to launch an identity and record-keeping system on the Cardano blockchain for the country’s five million students.

Read Also: 15 Best ICO Platforms to Invest In 2023

Final Words

Mastercoin performed the first token sale (often known as an ICO) in July 2013. After that, they saw a decline, but they then experienced a resurgence in 2017. Initial coin offerings only have increased since that time. ICOs are excellent business financing and fundraising instrument. But as the saying goes, “It’s better to be secure than sorry.” You should therefore do so at your own risk. Watch out for con artists that attempt to use ICOs to carry out fraudulent operations.

SoluLab, renowned for its excellence in ICO development services, empowers businesses, especially startups, to achieve remarkable fundraising success and establish a strong market presence. Their top-tier ICO software development solutions ensure maximum potential for fundraising campaigns in the fast-paced ICO landscape. With an expert team dedicated to creating innovative solutions, SoluLab offers a fully-customized white label ICO platform with support for multiple blockchains, revolutionizing the fundraising experience for new cryptocurrency ventures. To leverage the full potential of their project’s fundraising capabilities, businesses can trust SoluLab’s expertise. Contact SoluLab today to launch your own white-label ICO platform and embark on a successful fundraising journey.

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FAQs

1. What is an ICO?

ICO stands for Initial Coin Offering, which is a fundraising method used by blockchain projects to raise capital. During an ICO, companies offer new digital tokens in exchange for cryptocurrencies like Bitcoin or Ethereum. These tokens represent an investment in the project and can be traded on various cryptocurrency exchanges.

2. What makes an ICO successful?

Several factors contribute to the success of an ICO. Firstly, a strong and innovative project with a clear use case and value proposition attracts more investors. Additionally, a well-defined whitepaper detailing the project’s goals, team members, and technical aspects builds credibility. Effective marketing and community engagement also play a crucial role in attracting investors and building a strong community around the project.

3. What are the benefits of participating in successful ICOs?

Participating in successful ICOs can offer significant benefits to investors. Early investors in successful projects can enjoy substantial returns on their investment if the value of the tokens appreciates over time. Additionally, holding tokens of a successful project may provide access to various utilities within the platform or ecosystem, offering additional value to the token holders.

4. How can I participate in an ICO?

To participate in an ICO, you need to have a compatible cryptocurrency wallet and the required cryptocurrency (usually Bitcoin or Ethereum). When the ICO starts, you send your cryptocurrency to the ICO’s smart contract address, and in return, you receive the new tokens based on the exchange rate specified in the ICO’s terms.

5. Are all ICOs successful?

No, not all ICOs are successful. While some ICOs have raised significant funds and achieved their goals, many others have failed to gain traction or deliver on their promises. The success of an ICO depends on various factors, including the project’s viability, market conditions, team expertise, and execution. Investors should conduct thorough due diligence before participating in any ICO.

Disclaimer: Please note that the information contained herein is not intended to be a source of advice or credit analysis with respect to the material presented, and the information contained in this blog does not constitute investment advice.

How to Promote your ICO Effectively?

Posted on by Shipra

How to Promote your ICO Effectively

A fun and convenient approach to financing a digital firm is through an initial coin offering (ICO). At first appearance, it appears straightforward and transparent, which is why it was usual practice to almost completely forgo marketing help while launching ICOs in 2017–2018. the 2018 surge, but it was tarnished by fraudulent ICO schemes. Is ICO now extinct? No, ICO seems to be more vibrant and well-liked than ever thanks to effective ICO marketing techniques. Startups raised $4 billion through ICOs in 2017, while the funding totaled $17.8 billion from the start of 2017 to the middle of 2018. ICOs recovered in 2019 after hitting a low point by the end of 2018, reaching a high of nearly $14 billion. Additionally, by 2021, ICOs had already raised roughly $21 billion.

Although ICOs have decreased since the outbreak, it appears to be a positive indicator for cryptocurrencies & digital technology in general. The quality is improving, there are fewer scammers, and the greatest ideas are more prevalent as there are fewer ICOs.

Read also: Key Points to Keep in Mind while Creating an Initial Coin Offering

But in the modern era, an ICO cannot be considered effective without an ICO marketing plan. To stimulate demand, it wants to develop a market-driven ICO marketing strategy. Given the current trend, promoting an ICO is often required for ICOs to be accepted as legitimate by investors. The best technique to promote ICO, in the opinion of further than 80% of brands, is through content marketing.

ICO promotion: how to advertise ico

Advertising of ico is a major step towards its promotion  it helps to a better understanding of your promoting ico in this below section we deeply explained how you can market your ico:

Whitepaper

A whitepaper promotes your cause for popularity by proving that your ICO project is legitimate. Writing the Whitepaper containing all of the (ICO)information is essential for marketing cryptocurrencies. It serves as your project’s “Mission Statement” in the eyes of possible investors. Everything from the overview of your team’s experience and credentials to the amount of funding required for the project, token distribution strategy, and corporate social responsibility should be covered in an effective whitepaper.

Be careful to emphasize how you’ll deal with illegal activity as well. Last but not least, none of these particulars should overwhelm or jeopardize the whitepaper’s design. A good whitepaper must have a stunning design and use visual components.

Website

90% of potential investors check out the project’s website to learn more. Therefore, it follows that your website will be the focal point of your ICO digital marketing plan. Choose a design that works best for your ICO. Select a web hosting business that has a quality domain name and website builder. To create your online store, choose a store builder. Creating a quality website is one thing, but promoting it is quite another. You wouldn’t want your initial coin offering project to vanish in the sea of cryptocurrencies. Therefore, optimization for search engines is essential in putting a website in the public eye. Therefore, pick an SEO company that can improve your website’s search engine ranking.

Your website’s design components should receive more consideration than just the text.

 ICO Calendar Websites

One of the finest locations to look for investors is via ICO directories. These calendar websites make it easier to keep track of many businesses’ operations in advance. You get exposure while demonstrating to potential investors how transparent your business is. These websites are reasonably priced, simple to use, and typically ask for information such as your ICO project name, token specifics, and contact data.

So try to list your ICO on as many calendars as possible to gain maximum exposure. Some of the best ones are:

  • CoinSchedule
  • CoinGecko
  • ICOCalendar.Today

Conferences, Trade Shows, Podcasts & Interviews

Being a part of the Leading Events can have a huge impact on your project because it essentially brings together the best businesses. Podcasts, trade exhibitions, conferences, and interviews are very beneficial for building your ICO’s reputation and brand. When you’re starting and trying to spread the word about or create hype for your ICO, you should attend at least some of these events. Take advantage of the chances they present because most of these programs have low enrollment rates. Try to take advantage of podcasts and the opportunity they provide to enlighten potential customers about the specifics and features of your product. Audio material has always been effective. Regularly producing podcasts and reaching out to influencers for interviews will help you engage your audience.

Press Releases

A press release is a written, concise news item or document that announces something noteworthy that the public must be aware of and is delivered through a network of news sites as well as the media. In your press releases, you should highlight crucial details about the offers you make to investors.

Bounty Programs/Airdrop campaigns

In essence, these programs allow you to provide a variety of incentives to encourage behaviors that will boost your initial coin offerings and produce insightful data. similar to how some blockchain networks give away free tokens to entice investment. An airdrop campaign is a tried-and-true strategy that consistently succeeds since it not only increases awareness of your recently established ICO but also increases the value of your tokens.

Email Marketing

It is one of the easiest but most effective ways to promote. Making a good email marketing strategy is crucial since these communications work as compelling newsletters that can draw in new investors and keep your current ones interested. So, To reach the right audience quickly and accurately, using an email finder helps identify valid contacts and expand your reach For optimum impact, your email should address every step of the purchasing process. It must convey the ideas behind your company, present alluring deals, and offer sufficient assistance to paid users. At the same time, implementing proper DMARC policy options ensures your emails are authenticated and trusted, reducing the risk of them landing in spam folders.

Crypto Influencer Partnerships

Due to the spike in registrations and subscriptions, influencers advocating your ICO boost the project’s legitimacy and conversion rate. Partnering with reputable financial institutions and businesses will do wonders for trust-building. However, make sure the influencer you work with has a strong belief in your business; else, it could have negative consequences.

Community Management

Building a strong community and enabling it to do so should be your long-term objectives. Go above and beyond while creating networks and forming, maintaining, and developing relationships. It is crucial to understand that how you present your ICO to your target audience will determine whether it succeeds or fails. Networking on sites like LinkedIn, Reddit, Telegram, Quora Channels, and Specialized Forums is one approach to developing a community. It will be easier for you to ensure the growth and promotion of your ICO if you have a reliable community update channel.

  • Network with LinkedIn: You must be prepared to go above and above when creating networks and forming and fostering relationships, just like in a business. Look for any chance to do this, and don’t be afraid to take it. The fact that there is already a reliable platform where you can conduct the majority of your networking is advantageous. According to statistics from 2021, LinkedIn presently has more than 740 million users. Up to 55 million businesses have been listed on the site, and about 25% of that amount are senior-level influencers.In a fast-paced digital world, traditional business cards are being replaced by digital alternatives that enable seamless networking. Virtual business card allows ICO founders, investors, and crypto professionals to share their details instantly via a QR code. Unlike physical cards that can get misplaced, digital business cards ensure quick follow-ups and sustained engagement, making them an essential tool for ICO marketing and investor relations.
  • Facebook: There are numerous Facebook pages and groups that talk about cryptocurrencies, ICOs, and blockchains. This is a wonderful route for informing the public and promoting your initial coin offering.
  • Reddit: This makes the largest cryptocurrency community aware of your ICO. Subreddit creation and thread commenting are two ways to take use of this exposure.
  • Telegram: Telegram has the potential to become the next leading messaging and community-building platform. This platform is expanding every day and has gained support from the cryptocurrency community. Because of this, you must use it as a platform for ICO marketing.
  • Quora Channels: By contributing valuable information to Quora and participating in frequently updated conversations like https://www.quora.com/topic/Initial-Coin-Offerings-ICO, you stand a chance of gaining more exposure.
  • Specialized Forums: Most investors and cryptocurrency enthusiasts frequent the specialized sites to learn more about cryptocurrency and the available opportunities. Marketing on such sites provides you with a better chance to communicate your ICO to the right audience. The majority of social media platforms do not require much capital to run and therefore the best channels to use if you have a small budget.

Paid Promotions and Advertising

If you want to seriously promote anything, advertising is nearly always a given. You must hunt for venues that permit ICO adverts because they are not permitted on well-known ad networks like Google and Facebook. Some websites that specialize in Bitcoin advertising are successful in this regard. As an illustration, consider https://bitmedia.io/, which offers solutions that enable you to give a variety of ad targeting options & simple tracking at reasonable prices. If you’re pursuing a multi-pronged strategy, give each one enough time to enhance your campaigns. If not, you can always use services for online promotion.

SEO

It should be at the top of your list of priorities because it serves as the foundation for your digital marketing. These days, appearing higher in search results is automatically associated with reliability and reputation. Because of this, it’s just as effective just like any PR tactic that has previously been successful. As you presumably already know, there are several factors involved in search engine optimization. You should concentrate on the keywords you choose in your business listings if you want to promote your ICO. Don’t overlook the comments, social media shares, and mentions you receive as well. Partnering with a premium digital marketing agency can also give you an edge, helping you refine strategies, strengthen visibility, and maximize the impact of comments, social media shares, and mentions you receive. Working with an experienced marketing agency in Atlanta can further localize your efforts, ensuring your brand resonates with the right audience in a competitive regional market.

ICO marketing strategies: Key to Success

Whatever ico marketing strategy you choose to promote your ICO, you are bound to face stiff competition. You, therefore, have to be the best to beat the competition. To stand out in the competition here are some essential ico marketing strategies to help you:

Read also: How to Reap Profits from White Label Initial Coin Offering

Target the right audience

Despite the rising popularity of cryptocurrency, it doesn’t mean you should market your ICO to the masses. You will end up spending a lot of time and resources without achieving meaningful conversions. So, to be on the right track, ensure you understand your target audience and direct your efforts to that specific group. Segmenting your audience will help you in choosing the right marketing campaign for each group. This way, you will realize better conversions.

Seek the services of an ICO advisor

An ICO expert has the required experience to help you promote your ICO. You should, therefore, retain an ICO advisor to assist you to oversee the project. Such an expert understands the Dos and Don’t in the crypto industry. They will be able to tell you which marketing strategy will work and which will not. This will reduce the losses that come with putting efforts into non-productive ventures.

Make your offer to be transparent

The most important thing to make your ICO successful is to make it transparent. Transparency creates trust and confidence in the buyers which increases the funds collected during the initial offering. To create confidence among buyers, give information to all team members behind your project. You should also give all the financial information. People will also have questions to ask about your ICO. So, make sure you have a very responsive team on all the online platforms to respond to potential buyers’ questions and concerns.

Have an inspiring story

Backers like to associate with ICOs whose mission and vision they can relate to So if you have an interesting story to tell about your ICO, chances are, you will turn your potential customers into supporters. This increases the chances of success for your ICO.

Make your ICO compliant

Since ICO is a relatively new business, compliance is a key concern. Any ICO must be compliant for potential investors to consider participating in it. Ensure that your ICO complies with all SEC regulations right away if you want to succeed in this industry. This will contribute to the success of your ICO strategy. Choosing a combination of effective ICO marketing methods is the final step in promoting an ICO. A thorough investigation and plenty of time are needed to develop a successful approach. Therefore, take your time to research what is most effective, and on top of that, make sure your ICO is reliable and compliant.

Conclusion

The growing acceptance of cryptocurrencies will not help you in your ICO promotion to the appropriate target population. Therefore, picking the appropriate marketing strategy will enable you to achieve higher conversion rates. Use ico marketing plans and ICO  advisor’s services to minimize losses.

Key Points to Keep in Mind while Creating an Initial Coin Offering

Posted on by Shipra

 

Key Points to Keep in Mind while Creating an Initial Coin Offering

You’ve certainly heard of an ICO by now and are aware that it’s a cutting-edge method for blockchain firms to generate money by creating a new digital asset or “token.” It has also gained a lot of attention; according to Fabric Ventures and TokenData, ICOs raised $5.6 billion in total in 2017.

You may also be aware that the Securities and Exchange Commission is actively looking into ICOs that it believes may have broken federal securities laws and has lately issued dozens, if not hundreds, of subpoenas.

Here are a few things to think about if you’re launching coin as a fundraising approach for your company in 2022. 

Key Points to Keep in Mind while Creating an Initial Coin Offering

1: Securities and Exchange Commission

Jay Clayton, the chairman of the Securities and Exchange Commission, has made it very obvious that all tokens are securities, making the offer and sale of tokens subject to federal securities regulations. Therefore, ICOs must either meet the conditions for an appropriate exemption from the registration requirements or register with the Securities and Exchange Commission.

Your token should be viewed as a security even if it has a “utility” purpose. Your next move after writing your White Paper and organizing your token economics should be to employ a seasoned securities lawyer with a mix of experience in capital markets and cryptocurrencies.

2: Reg D 506(c) and Reg A+

Reg D 506(c) grants you the authority to broadly solicit or market your transaction and permits accredited investors to lawfully invest in your ICO. The advantages of Reg D include the fact that there is no cap on raises, it is quick and simple, and legal fees typically range from $25,000 to $50,000. The drawbacks include a one-year lockup on tokens, a cap on affluent investors, and the requirement that your investors provide proof of accreditation.

Anyone over the age of 18 can invest anywhere in the world, and Reg A+ gives you the opportunity to publicize your ICO and has a $50 million raise limit. The main benefit is that anyone can invest, which fits well with the crypto community’s concept. The drawback is that Reg A+ takes three to six months to complete, involves two years of audited financials (assuming you have operating experience), and can cost anywhere between $250,000 and $500,000 in marketing, legal, and accounting services.

3. Figure out how much capital you really need.

There are too many ICO issuers raising too much money. It may seem contradictory, but your three-person blockchain firm doesn’t really require $50 million, does it? ICOs that raise too much money risk being risky and irresponsible at the very least, and limit the upside value to their investors at the best. Plus, raising too much money can have other detrimental effects including cultural deterioration, as renowned investor and entrepreneur Marc Andreessen famously warned. According to Andreessen, such firms are susceptible to becoming “infected with a culture of complacency, laziness, and hubris.”

Read more: What are Some of the Benefits of an ICO?

4. Evaluate your Advisors carefully.

LinkedIn is now overrun with people identifying themselves as “ICO Advisors.” Even while some people might have relevant experience, the great majority do not. Here are some inquiries you ought to put to your potential advisors: What ICOs have you worked on recently and in the past? What role did you play exactly? Do you still have time to work on the project? Was there any evidence of your involvement in the White Paper or elsewhere? How did you get paid for the work you did? Is it legal? What were the results of the ICOs you participated in?

Additionally, it’s essential to request references and request that the advisor arrange calls with their current and previous ICO clients. Two to three recommendations should be no problem for an experienced advisor.

5. Online Reputation Management

Once your coin has been posted on various listing services, you may observe some users writing queries or remarks about your ICO. Anybody, from a YouTube blockchain blogger to an ICO platform reviewer, could participate in these online discussions about your token sale. Similarly to this, not all reviews or feedback are positive, but this content still ranks highly when potential investors search for terms like “Your ICO name + review,” which means that if a negative review is left unanswered, those potential investors will be less likely to participate in your token sales. The profiles of certain dapp entrepreneurs on the various ICO listing platforms are not verified. Investors get doubtful as a result of such factors. 

You must monitor what is said about your ICO to resolve this problem. Creating numerous Google alerts will be quite beneficial. You will be notified through Google alerts each time someone mentions your initial coin offering (ICO) online.

6. Organic Reach

Search engine optimization (SEO) enables you to reach a larger audience of people looking for the blockchain solution you are developing. SEO not only draws in investors, but it also increases your exposure. If your ICO website is optimized for the term “blockchain KYC,” anyone looking for information on it can reach your solution through Google searches.

7. Only registered broker-dealers can charge success fees.

Federal broker-dealer rules have been broken by both you and the marketing business if you pay them a percentage of your raise but they are not registered broker-dealers. Offering success- or incentive-based pay to a company that isn’t a FINRA-registered broker-dealer is against the law.

Paying in cash is a secure method of doing business. You can even offer a combination of cash and tokens, but before putting forth or accepting any such proposal, make sure to speak with your securities attorney.

Conclusion

The bottom line is that ICOs demand a very challenging legal procedure. They serve as the cornerstone of a developing digital currency market. But that sector of the economy is no longer the lawless Wild West. In addition to China and South Korea’s explicit bans, US officials have also warned about ICOs. Your ICO must be appropriately planned, thoroughly researched, and based on a basis of compliance with securities regulations in its jurisdiction if you want to guarantee long-term success.

Understanding Blockchain Fundraising — Initial Coin Offering (ICO)

Posted on by Shipra

Understanding Blockchain Fundraising — Initial Coin Offering (ICO)

Blockchain technology has many use cases in the fundraising world. It is one of the most innovative technologies of recent times, as it provides a decentralized way for projects to raise donations, record transactions, and track how donations are spent.

Blockchain fundraising is a new trend in the fundraising world. It is a type of crowdfunding that allows people to donate money to a cause without any middlemen.

While crowdfunding through online platforms such as Kickstarter or Gofundme has exploded in popularity, blockchain’s decentralized nature allows organizations to raise funds from people directly without any middleman taking a percentage or commission.

What is Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) is a type of crowdfunding that has emerged as an alternate way to raise money for start-ups. The term ICO refers to the process of releasing newly created cryptocurrencies, tokens, or other digital assets.

Startups may use an ICO to bypass rigorous and regulated capital-raising processes required by venture capitalists or banks. It can also be seen as a way for organizations to avoid the rigorous and regulated capital-raising process required by venture capitalists or banks.

Read also: Initial Coin Offering (ICO): Everything You Need To Know!

An initial Coin Offering (ICO) is similar to an IPO (Initial Public Offering), which raises funds when a new company ventures into the stock market.

Types of Token Fundraising

There are several ways people categorize the types of token fundraising. One of the easiest ways to understand crypto fundraising is to break it into Private Placements and Public Offerings.

Private Placement: Before launching a public offering, a project owner may decide to conduct a Private Placement in which tokens are offered to a select group of investors. This is called a “token presale,” which occurs when a startup or project sells tokens while the project is still in development. The token presale’s goal is to either raise funds for the project’s early development or business growth accretion leading up to the ico launch platform.

Public Offerings: There have been three main types of public offerings. It includes Initial Coin Offering (ICO), Initial Exchange Offering (IEO), and Initial Decentralised Exchange Offering (IDO).

FAQs About Initial Coin Offering (ICO)

What Happens If the Initial Coin Offering (ICO) Fails? If the ICO fails to raise enough funds, the new cryptocurrency is usually not created (or completed), and backers receive their money back.

What is the largest initial coin offering (ICO)? Ethereum’s initial coin offering (ICO) in 2014 had to be the most successful ICO of all time, at least to date. Over 42 days, the Ethereum ICO raised $18 million.

What Makes an ICO Successful? A company holding an ICO, similar to an initial public offering, should clearly state the maximum coin supply and the number of tokens allocated to founders, early investors, partners, and the company itself.

Conclusion

Finding funding to launch new ventures has long been challenging for entrepreneurs, even those with great business ideas because the traditional fundraising process requires significantly more effort, time, and money.

On the other hand, Blockchain technology provides an alternative fundraising method best suited for blockchain-related projects.

Blog Credits: Medium

Understanding the Ethereum ICO Token Hype

Posted on by Shipra

Understanding the Ethereum ICO Token Hype

Tokens and the Future of Crypto

Since the advent of bitcoin, the overall excitement around decentralized technologies has grown exponentially. The imagined possibilities of what these new systems will do for humanity have only just begun being explored in-depth. With a market capitalization of currently about ~$40 billion at the time of this writing, bitcoin remains the most valuable, and widely adopted cryptocurrency to date.

However, the rise of cryptocurrencies has birthed a few new breadwinners for our growing crypto family of public blockchains — specifically Ethereum (ETH).

Ethereum, which broke onto the scene only within the last 2 years, thanks to a very successful crowd sale, has since experienced astronomical gains…With an immense uptick in adoption from developers, institutions, and some of the largest enterprise-level organizations in the world, such as BP, Toyota, Intel, Microsoft, and more.

The core draw of generalized public blockchains like Ethereum is not purely a technical attraction, but more specifically “socio-technical”. The most disruptive aspect, thus far, for Ethereum, has been the growth of “tokenized assets” being created on the Ethereum public chain to create incentivized platforms; wherein the owners of the token use that asset to interact with and utilize the platform itself.

Read also: 7 Most Successful ICOs of All Time

The incentives for these tokens have many layers. Though the initial draw to these tokens is technical: the real benefit of tokens is the societal impact they have on the creation of new businesses, and raising funds in a borderless, global manner…without having to ask permission. Let’s jump into the specifics…

Smart Contracts 101 — An Introduction to Irrational Exuberance

If you read our previous article on our introduction to Ethereum, you should know by now that the project has the potential to solve major efficiency problems across a plethora of pre-existing industries; as well as create wholly new owned industries.

At the center of Ethereum lies the EVM or “Ethereum Virtual Machine”, a decentralized computer that can execute “smart contracts” (think mini-applications) that are submitted to run on the Ethereum public chain.

These contracts are self-enforcing, meaning that they will run exactly as pre-programmed, without the ability of manipulation or censorship, retroactively (though some will argue that this aspect isn’t true due to past events, that’s a discussion outside the scope of this post). This poses a tremendous advantage, allowing programmers to automate many processes throughout e-commerce, finance, real estate, legal contracts, and more.

Imagine an escrow system where “John” sells a product to “Mary”; a smart contract will securely store Mary’s payment, and will release it to John after the confirmation of delivery is made by an outside oracle. This eliminates the need for third parties to oversee the transaction (which creates additional counterparty risk by adding another trusted agent to the transaction).

Read also: How Do Smart Contract Applications Actually Work

Similarly, one can imagine a smart contract that automatically settles countless transactions in the banking sector, eliminating the need for costly settlement systems like the SWIFT network; systems that not only expend a large number of monetary resources but also precious human capital and intellect as well; intellect that could be best utilized in other ways than simply moving value from Point A to Point B across the globe.

Enter ERC20 Tokens

One of the main capabilities of Ethereum is that it allows a user to create their own token. A token is a representation of value, a sort of digital asset (dasset). The Ethereum developers decided to standardize this process, and so the ERC20 ‘Token Standard’ was created. This templated-contract standardization contains a series of functions that enables the issuance, distribution, and control of the assets in a formalized, standardized manner.

A token standard allows for the ease of interoperability between DApps (decentralized applications built on the Ethereum public chain) and the tokens built by the programmers.

What is an Ethereum Token sale?

Many developers have chosen Ethereum as the main platform to kickstart new projects; at the center of this, we have ICOs, which stands for “Initial Coin Offering” (there are other names as well but this is the most prevalent), similar to IPOs (initial public offerings, minus all the securities stuff, but that’s an on-going point of contingency).

ICOs are essentially a fundraising mechanism that allows a person/investor to receive a token in exchange for another well-known digital currency like Ether or Bitcoin. Typically, ICOs on the Ethereum network issue ERC20-compatible tokens to its users via smart contracts (barring the organization/individual holding the ICO from creating more tokens than originally specified in the initial contract); this allows developers to take advantage of the security the Ethereum protocol provides, minus all the additional technical overhead and complexity. Without having to worry as much about security (the initial token contract being secure is still, of course, a top priority) developers can keenly focus on the application layer; creating a more refined user experience to aid in the adoption of their platform/project.

It is also the norm that each new team that hopes to raise funding via an ICO launch platform also presents a ‘whitepaper’: a document explaining in detail the pitch of the future company and platform, going as far as to describe in detail the technology behind the proposal itself.

The various formats in which an individual or organization can hold an ICO crowd sale are ever-evolving, however; but, we’ll find a fair methodology that ensures optimal token distribution, and doesn’t create a quick cash exit, burning crowd sale participants.

What’s Got People Excited?

The initial appeal of ICOs should be fairly easy to see. Due to the borderless and decentralized nature of public blockchains like Bitcoin and Ethereum — the ease of transferring and moving wealth globally becomes almost effortless.

Now, because those transfers are effortless and permissionless, the barrier to entry for investing in a good company/venture is now freely available to everyone — even your gardener.

The tokens themselves do not offer the holder any particular rights or actual equity in these projects; however, it does enable the ability for individuals to speculate on the adoption and eventual real-world usage of those systems, creating liquidity and the ability for developers to fund their project and bring it to fruition. It also allows those users/investors to access any platforms or features that the developers create in the future with the token (think of it like an API key, that you pay for, Balaji puts that ever so succinctly).

With tokens, entrepreneurs have the ability to open up their projects to a global audience, allowing them to attract and raise funds from savvy investors all over the world salivating for the next “big thing” in tech. Technical Expertise, Developer Evangelism, and Product Marketing play a key role in helping ICO holders to establish a base of early adopters and fuel the initial bout of speculation to get the project off the ground (and enough attention to begin trading on prominent exchanges).

Token Sales Thus Far

We’ve seen many high-profile ICOs thus far. With companies like Storj, raising $ 30 million for their decentralized cloud storage platform; Brave raised a stagging ~$34mill in roughly 30 seconds; Aragon raised ~$25 million in about 20 minutes; and Gnosis, the originator of the Reverse Dutch Auction, who raised $12million in about 12 minutes.

But, we also can’t forget most recently, Bancor, who raised an astounding $140million in just a few hours (insert gasp here).

If those figures are stagging and surprising to you, you’re not the only one. But, who’s to say if these are proper valuations or not? This is the first time in history we’ve been given this ability to raise from a global audience, almost instantly. Perhaps these numbers are only a drop in the bucket for what’s to come next. Time will tell, and history will play out from here.

Picking a Good ICO

Creating an ERC20 token is easy. Paying a team to create amazing design mockups and marketing pages is even easier. The difficult aspect of ICO investing is learning to filter out the noise, and determine if the team is in it for the technology and use case — or a quick buck.

Now, you’d probably argue that’s the job of modern-day VCs, and in a way you’re right — that’s what VCs are good at. Finding the diamonds in the rough from a Founder perspective. Investing in ICOs like Brave’s Basic Attention Token Sale, an offering by an already established entity with a working product and sound team, are likely a safer bet. But, the risk/reward there might not be satisfactory (especially after you’ve gotten a taste of 5–10x returns, it can be hard to go back). Picking a great project is a combination of art, and science — due diligence remains more important than ever, especially when investing your hard-earned savings into such an unregulated and “Wild West” like industry.

Read also: How to Find the Best ICO Service Provider?

There is no clear-cut formula for token investing; it’s a matter of making informed and educated decisions, at the right time. But, fortune favors the bold, no?

Legal Risks

No primer on ICOs would be complete without a section on legal risk. As mentioned above, this space is highly unregulated and filled with opportunistic money grabbers looking to make a quick buck on your poorly informed decisions.

That said, regardless of how high-profile the token offering is, there is nothing stopping a development team from running off with the funds raised via an ICO, except for maybe burning years of social capital. Which, will stop some, but not all (greed can do powerful things, remember this).

Lock-up mechanisms (think vesting schedules and cliffs) with token contracts are becoming a more common norm; but, to think that’s enough to give you peace of mind in this (somedays seemingly) lawless jungle of cutthroats, would be naive.

Since most of these ICOs run with a disclaimer of not guaranteeing returns to investors if its associated token price plummets to zero based on negligence or malicious actions by the development team — there is likely not much legal recourse will do if the developers are good at masking their trail…this is the Wild West remember — watch out for cowboys (and cowgirls, it’s 2017).

Closing

Hopefully, this was a concise quick introduction to this growing phenomenon. For now, VCs and traditional accredited investors will do all they can to gain influence and hold ground in this fledging industry; performing the appropriate due diligence to calculate risk; maybe even picking a few winners along the way.

But, once this powerful new paradigm evolves a bit more, we may have finally created the global answer to Silicon Valley — only this time on the internet, where all can be sovereign and free.

Blog Credits: Medium

Crypto Launches Explained: ICO vs. IDO vs. IEO

Posted on by Shipra

 

Crypto Launches Explained ICO vs. IDO vs. IEO

If you’re familiar with stocks, you’ll know that an IPO is an Initial Public Offering. That’s when professional investors, independent speculators, and supporters can buy shares in a company. Crypto launches are a little different from stock launches.

Crypto projects have ICOs, IEOs, and IDOs. Interestingly, these are all essentially different versions of an IPO, and a crypto project may engage in any of them, any combination of them, or even all of them. But what are they? What do they mean, and how are they different?

What Is an ICO?

An ICO is an Initial Coin Offering. After an ICO platform, anyone can buy crypto in support of a project directly from the organization hosting the project.

Prior to an ICO, there is typically no coin availability or circulation. Alternatively, availability and circulation may have been limited by the organization behind the project. For example, a coin may have already been minable but was then only available to miners. ICOs can also be public (open to anyone) or private (open to select investors, etc.).

Read also: What is the ICO and How Does it Work?

ICOs were the initial “crypto IPO” before exchanges became popular. For example, when Bitcoin had its “ICO,” it couldn’t have listed on an exchange because there were no cryptocurrency exchanges. Because ICOs involve buying tokens directly from the project, you have to really trust what you’re investing in because it may not have been verified in any meaningful way.

What Is an IEO?

An IEO is an Initial Exchange Offering. Crypto exchanges have a verification process, so crypto projects that make it onto exchanges are usually more reliable. Plus, when you buy from an exchange, you’re not giving up any payment information to the individual projects you invest in through the exchange.

Because being verified by an exchange takes time, some projects may have an ICO and then have an IEO later down the road. However, because crypto projects are more discoverable and are more likely to be successful on an exchange, a project might not have its own ICO and instead wait to “go public” on an exchange.

Read also: All You Need to Know About Initial Exchange Offering (IEO)

There’s another reason crypto projects are moving toward skipping the ICO: They’re afraid of regulators. For example, did you know that Coinbase reports to the IRS? So, selling through exchanges takes some of the pressure off the organizations that host the actual crypto projects.

What Is an IDO?

An IDO is an Initial DEX Offering, whereas a “DEX” is a Decentralized Exchange. A decentralized exchange is like a regular exchange, but no one is in charge. So, instead of the exchange buying coins from sellers and selling coins to buyers, the buyers and sellers just do business with one another.

If an ICO is buying from an artist, and the exchange is buying from an auction house, a decentralized exchange is buying from a flea market. It’s easy, fast, and fun, but it puts a lot of the responsibility and pressure back on the buyers—just like with ICOs. In fact, decentralized exchanges are older than the more popular centralized exchanges of today.

Just like a project can have an ICO and a subsequent IEO, a listing on a DEX may already have an IEO and ICO.

That’s All. Right?

That’s actually not all. There are still other ways for cryptocurrencies to get into people’s hands. But, most of it has to do with different kinds of cryptocurrencies—because they’re not all made equal.

For example, security tokens operate a lot like shares of a company. The only real difference between security tokens and stocks is that security tokens are on a blockchain instead of being registered. But, not being a cryptocurrency and not being a stock means that they can avoid answering to pretty much anyone.

These projects have Security Token Offerings. But, these offerings are usually limited to organizations like investment groups.

ICO vs. IDO vs. IEO

A lot of crypto projects that have an ICO can be successful. A lot of crypto projects that get listed on exchanges are not successful. Experiences with decentralized exchanges can be positive or negative. No matter how you buy crypto, just make sure that you do your research first.

Blog Credits: MakeUseOf

How to Evaluate an Initial Cryptocurrency Offering (ICO)

Posted on by Shipra

 

How to Evaluate an Initial Cryptocurrency Offering (ICO)

Initial Cryptocurrency Offerings (ICOs) are the flavor du jour in the sprawling Crypto-Tech market. I’ve been following and analyzing their development early on, in addition to being in private conversations with several entrepreneurs who are planning or have done them already.

At their essence, they represent a fundamental shift in how companies get funded, when compared to the traditional Venture Capital driven methods, as I described these differences in How Cryptocurrencies and Blockchain-based Startups Are Turning The Traditional Venture Capital Model on Its Head. What I inferred from that post is that the way forward is a clever combination of both worlds, the old and the new, a point that Zenel Batagelj from ICONOMI picked up in ICO 2.0 — what is the ideal ICO?, a good post that I recommend you read.

For background, I’ve already described the Best Practices in Transparency and Reporting for Cryptocurrency Crowdsales in a lengthy post, about two years ago. Re-read it, because much of it still applies increasingly so, and for a new reason: there are several more ICOs today than in early 2015.

I’d like to expand my own thoughts on how to evaluate an ICO by categorizing the criteria along 4 dimensions:

  1. Startup Characteristics
  2. Operational Transparency
  3. Crypto-Sale Resiliency
  4. Business Model Relationships

Arguably, the bar is higher now because if you want to comprehensively evaluate an ICO launch platform, you need to look at some new dimensions instead of just the one about being a startup. But at the same time, the bar can appear to be much lower because no one is forcing new investors to examine these four areas with the same required rigor that venture capitalists typically exercise, and specific ICO regulation appears to be lax or non-existent, which is OK initially, but let’s not digress.

Startup Characteristics

That’s where all the traditional VC stuff goes in. In a non-Crypto-Tech world, VCs would continue their jobs as they always have, by making investment decisions based on evaluating startups, one at a time. This is where the traditional “team-product-market” trifecta evaluation comes in, and I’m not going to rehash what happens in that dimension. It often takes a career lifetime to perfect how to invest based on pattern recognition and drawing your own guideposts for making decisions. You can’t replace that, and you can’t fake it either. Here, you can add such topics as competition, go-to-market approach, product roadmap, and implied valuation.

A warning signal emerges when newcomers start offering broad brush evaluations without having had the benefit of direct investment experience that includes lessons learned from having made good and bad decisions.

Read also: ICO Consulting 101 – Your Ultimate Guide Before Launching an ICO

An additional requirement here is that someone evaluating the markets or solutions being targeted by these new companies needs to know something about the emerging crypto-tech space. Many of these companies are not targeting traditional brick-and-mortar or existing online markets. Instead, they could be basing their models on the assumptions of a new ecosystem of blockchain-based users, applications, and novel types of marketplaces, with new types of services that didn’t exist before (e.g. around identities, naming, proofs, verifications, rights, smart assets, smart contracts logic, etc.)

Crypto-Sale Resiliency

Here we enter the crypto-tech territory. This part covers the sheer mechanics of the cryptocurrency sale, including its legal and regulatory aspects.

Some questions to ponder include:

  • In what jurisdiction is the company incorporated?
  • What legal structures are being disclosed?
  • What is the token distribution structure?
  • How is security handled?
  • What are the apparent, perceived, or real regulatory risks?
  • Are there plans for external or internal audits?
  • If there is a DAO-like component, is its articulation realistic and well-grounded?
  • Who has written up the token issuance contracts and actual token issuance software?
  • Which blockchain infrastructure is backing-up their sale?
  • Have they published the terms and conditions of the sale in clear language?
  • Have you talked to at least 3 other entities who have successfully done a token sale before?

The Coin Center has published a very good analysis, Could your decentralized token project run afoul of securities laws? that is worth reading. It mentions two important points to keep in mind: 1/ tokens must be a utility to the operations of the business, and 2/ they should only become available after your operations, not prior.

Operational Transparency

With public money comes greater responsibility. Doing a public crowdfunding campaign is a two-way street. It’s almost like being a public company from day one. It’s not easy being in the public eye. If you can’t deliver transparency, don’t take that path. And if we don’t self-govern to higher standards, the regulators will come and put a damper on this journey.

Read also: How to Start an ICO & Successfully Raise Funds

This is all still true and applies 100%, and relates to how you plan on communicating progress visibility.

Some questions to ask:

  • Is the company providing public dashboards?
  • Does the company have independent auditors?
  • Are their delivery promises well articulated so that they could be later measured?
  • Does GitHub or another public repository reflect their progress, and has a given track record?
  • How will they continue to communicate their progress?
  • Are they blogging regularly about their work?
  • Are the team members well-identified with links to their LinkedIn profiles?
  • Do they have external advisors?
  • Do you have plans to list your cryptocurrency on public exchanges, and which ones have you talked to?

Business Model Relationship

This is a critical part that should not be taken lightly, and it should be figured out early on. It pertains to building a case for why a cryptocurrency model is a right path for this company. The basic premise is about how tokens are related to the business model of the company. The token is supposed to tie everything together. For example, in the case of the Bitcoin blockchain, Bitcoin as a currency is totally ingrained in that blockchain’s operations, and it is at the center of a variety of actions: transaction validation, value exchange, miner’s rewards, store of value, transaction fee, the currency for services, etc. In the case of Ethereum, ETH is used to reward miners, as “fuel” that funds smart contracts, and it is also a proxy for other tokens that can be created and managed on the Ethereum infrastructure. For Steem, it is the currency that rewards contributors, and it’s a currency they can spend on other services.

Fundamentally, some questions must be answered:

  • What is the purpose of the token?
  • What function or utility does it perform?
  • Is it absolutely necessary?
  • Can you describe a viable economic model behind it?

Here’s another important question that deserves its own dive:

How does value flow from the outside of the ecosystem to the inside, and vice versa (not counting speculatory trading on public exchanges?

There are two types of segments for generating value:

1) Inside your own market

2) Outside of your market and into the cryptocurrency markets in general or the real world.

For example, can your users just spend and earn their coins inside, or can they also spend them outside of your application? If you are using a currency that has available liquidity (such as BTC, ETH, or even recently STEEM), you benefit from the broader network effects of these currencies, but if you are creating your own proprietary currency, your interdependency liquidity may take a little longer to materialize. For example, Steem has done a good job crossing boundaries between their cryptocurrency-governed site Steemit, and the real world and demonstrated it at their recent Steemfest in Amsterdam. Here are 4 examples I describe in a recent article, Steemit’s First ‘Fest’ Reveals the Power of Blockchain Community that showcase this cross-pollination of transactions between the crypto-world and the non-crypto spaces.

Read also: Top 5 Upcoming Cryptocurrency ICOs in 2022

“Many of the attendees paid for their travel using Steem dollars they had earned on the platform, As a bonus, each attendee received a number of Steem Power as a reward for attending. Furthermore, a fund was made available to reimburse attendees in financial need. One small exhibit area featured Maurice Mikkers, a “tear catcher” who photographs your tear via a special microscope in high resolution for 25 SBD (Steem-backed dollars).”

Do You Really Need an ICO?

Amidst all the excitement generated by ICOs and the prospects of freedom from the strings of venture capital money, and the creation of new business models that we haven’t seen before, there is a fundamental question that must be asked:

Do you really need an ICO with its own currency or perhaps you may just want to use an existing cryptocurrency that attaches to your model, in which case the ICO might be burdensome and risky?

Of course, you can spin your own coin and hope the economics of the business model will natively support it for the long term, but you could also decouple the token from your model and treat it like a currency that is pegged to an existing popular one (e.g. BTC, ETH or STEEM).

On the positive side, despite the current Wild West appearances of the ICO market, some known best practices are emerging to create and evaluate ICOs. Whether you are an entrepreneur planning for an ICO, an investor trying to decipher how to evaluate them, or a regular pondering their future, do not ignore the guidelines proposed in this article.

Blog Credits: Medium

ICO 101: A beginner’s guide to raising capital using cryptocurrencies

Posted on by Shipra

ICO 101: Beginner’s guide to raising capital using cryptocurrencies

An initial coin offering (ICO) is a way to raise capital for your project by selling blockchain-based digital assets.

Imagine you have a brilliant idea for a new blockchain startup. Perhaps you want to build the world’s first decentralized computer on the blockchain, which can be used to create native digital assets and develop decentralized applications. Users of the network will transact using tokens, which are digital assets created using your blockchain (and the nifty decentralized applications you can build on top).

Seems like a pretty good idea. But, like any startup, you need to raise some capital first.

For a traditional startup, your options are to either: raise a seed round from private investors, pitch a venture capital fund (or a hundred of them, most likely), or attempt crowdfunding using a crowdfunding platform. 

With your blockchain startup, however, you have another option: Why not raise capital by selling the tokens the network will eventually use? As the network grows, meaning that the tokens become more in demand, their value will rise and reward investors. This method of raising capital is an ICO platform.

Why ICOs are a popular way to raise capital

ICOs have a number of advantages:

  • Speed: It only takes 100 lines of code to create an Ethereum-based token like ERC-20, and tokens can, in theory, be created and distributed in a very short timeframe.
  • Liquidity: Tokens are sold into a global market that operates 24/7.
  • No gatekeepers: ICOs can raise capital directly from anyone with a crypto-wallet, anywhere in the world.
  • Ownership: Tokens do not confer ownership rights to tokenholders unless this is programmed into the smart contract explicitly.
  • Community: ICOs attract early adopters and align the early user base behind your success.
  • Minimal bureaucracy: Disclosure requirements and paperwork (depending on the regulatory status of your token) can be minimal.

Although the advantages are numerous, ICOs are no walk in the park. The crypto marketplace is extremely competitive and your project will face serious scrutiny from both regulators and the crypto community itself. This article will give you an overview of the work involved in pulling off a successful ICO.

Pre-sale: Everything needed before the launch

The very first question you need to answer is if an ICO is a right strategy to raise capital for your business.

The graveyard of failed ICOs is wide and deep — but the prospect of completing huge funding round in a matter of months (or even days) can still tempt overzealous entrepreneurs to ignore the risks. 

Not every project can successfully raise capital with an ICO. Firstly, it’s important to understand that an ICO isn’t just about raising capital. Before deciding on an ICO, you must know:

  1. How the use of a token (and a blockchain) genuinely improves a business, product, or service, beyond injecting a quick burst of capital in the short term;
  2. How to generate a fair return on investment for token holders over the long term.

The most successful ICOs have a compelling use case for a blockchain and, as with any successful business, a product or service that people want. 

There are thousands of tokens out there. Without a very convincing answer to these fundamental questions, investors are unlikely to take the risk of investing in businesses that are not well thought out.

Build a team

An ICO is an enormous and multi-faceted project. You’ll need an excellent team to be successful. In fact, the team behind an ICO is one of the most reliable indicators of whether it’ll succeed or not, and investors will be paying attention to it.

Understand the law and choose the right jurisdiction

Regulators and lawmakers are becoming more sophisticated in their understanding of blockchain and crypto, but as a relatively new industry powered by completely new technology, it still exists in mostly a grey area of the law — this includes ICOs.

However, you should not interpret this as meaning that your ICO won’t be subject to local laws and regulations. It actually means you definitely need legal expertise to clarify the exact legal nature of your token, how it might be regulated and what you’ll need to do to stay compliant — particularly with regard to securities law which governs the issuance of financial instruments classed as securities (such as stocks, bonds and sometimes tokens), and Anti-Money Laundering (AML) laws, which intends to prevent money laundering. 

The regulations that will apply to your ICO will vary according to the jurisdiction you’re operating in. For example, tokens sold to residents of the United States could be subject to the United States Securities and Exchange Commission (SEC) regulations and the Howey Test can be used to determine whether your token will be seen by the SEC as a security (and hence regulated by federal securities laws).

Read also: What are the Best Upcoming ICOs?

Some countries are known to have favorable legal frameworks for launching ICOs and crypto projects such as Singapore, Switzerland, Hong Kong, the British Virgin Islands, Lichtenstein, the Cayman Islands, Bermuda, Cyprus, Malta, and Gibraltar.

Choose (or build) the right technologies

It is not surprising that choosing the right technologies for your ICO will be fundamental to successful fundraising. The essential technologies that need to be in place are a blockchain, a smart contract, a token, and an assortment of back-end web and security infrastructure.

Blockchain: Some projects choose to develop their own blockchain and use it to run their ICO, but the vast majority use established platforms such as Ethereum. Building a blockchain is a complex and time-consuming undertaking and is really only used in projects where a bespoken blockchain is necessary. While these blockchains may offer unique features and greater flexibility, they also require more time and expertise.

Smart contract: A smart contract is the engine of your ICO. It handles incoming token purchases, enables token holders to transfer and sell tokens, connects to your token wallet, and more. It’s critical, therefore, that you properly audit your smart contract to ensure that it is completely secure and functional, as, for example, hackers will be looking for exploits in the smart contract to steal money from you and your investors.

Tokens: Since tokens are code, they can be programmed with different features. Tokens can be categorized as utility, participation, investment, or asset-backed. Each type can be bound by its own legal requirements and it’s therefore very important to be clear on the status of your token. 

Infrastructure: On top of the blockchain-specific technologies which are essential to your ICO, you’ll also need servers to manage your website traffic and onboard users. This is typical with automatic Know Your Customer (KYC) services or manual verification.

Security: While blockchains are highly secure, smart contracts and websites can be exploited by hackers, and ICOs can be a “honey pot” for scammers and hackers. You will be vulnerable to domain name and social phishing, personal data breaches, smart contract hacks, and distributed denial-of-service (DDoS) attacks. Having excellent security in place will protect and reassure investors about your project. Having a professionally audited smart contract, high-quality reliable hosting service (with DDoS protection), and domain monitoring for phishing, as well as buying up similar domain names yourself will all help secure your project and your investors.

Design your tokenomics

In general, you want to find a balance between the supply and the price of your token for your ICO. If the supply is too high, then the price per token will be diluted and low, but if the supply is too low then there might not be enough tokens to satisfy your investor base, or investors might be put off by the high price of the token. These factors are known as the tokenomics of your ICO.

The tokenomics of your project should support the nature of your product or service, as well as the price of your token. Two factors that are necessary to think about are the allocation and distribution of tokens and the supply of tokens.

Allocation and distribution: There are many decisions you will need to make to decide how to allocate and distribute the token. One of the first is whether it would be better to launch a private or public ICO or use both. A private ICO offers pre-mined tokens to a limited and selected group of investors, often in a pre-sale event ahead of a public ICO. Public ICOs allow almost anyone with a crypto wallet to invest in a token and are sometimes referred to as token crowdfunding.

Read also: Which are the main ICO listing websites out there?

A balance has to be struck here. If employees and early investors control too high a percentage of the tokens, the price of the token can be severely impacted if one of them sells. Many ICOs will include lock-up agreements to help stabilize the price over the short to medium term. If too much of the supply of your token is held by whales (anyone owning a significant percentage of the tokens), then it’s also a red flag for retail investors who will be wary of getting dumped on.

Supply of tokens: Your token will have a maximum supply (the maximum number of tokens that can ever be created/mined), a total supply (the number of tokens that exist at present), and a circulating supply (the number of tokens currently in circulation i.e., not locked up or burned). The value of your token will be determined in part by the supply, as well as the promise of your project.

You can design the supply of your token to be inflationary or deflationary, depending on the nature of your project. Inflationary tokens do not have a maximum supply (new tokens can always be created) but deflationary tokens such as Bitcoin (BTC) do have a capped maximum supply. 

An inflationary model can lead to the devaluation of your token over time, but it also encourages tokenholders to use their tokens. Using a deflationary model helps to increase, or at least maintain, the value of each token as demand increases, but can also lead to tokenholders hoarding their tokens instead of using them. You will have to decide which model is right for your project.

Choose your token sale model

After deciding on the tokenomics of your project, you’ll need to decide how to manage the sale of the tokens. The token sale model needs to balance simplicity with as much diversity as is necessary to entice and reward a mix of investors.

Soft, hard, and hidden Caps: The soft cap is the minimum amount your ICO must raise (either in the number of tokens sold or the amount raised) and the hard cap is the maximum amount that the ICO must raise before it ends. The caps are set before the ICO begins. Hidden Caps can be hard or soft, but investors are not able to know the capitalization until the allocation is finalized.

Uncapped or capped with fixed rates: You can create a fixed price for the tokens at an early stage of the ICO usually at a discounted price, moving them to another fixed price at a later stage. It motivates investors to buy in early.

Dutch auction and reverse Dutch auction: In a Dutch Auction, a smart contract is used to calculate the price of the token only after all bids are received, with the highest bids being prioritized. Reverse Dutch Auctions start with a high token price and cap, which then declines each day the sale runs or for every block that is mined. The sale ends once the cap is reached.

Collect and return (C&R): With C&R, the cap is fixed but with some flexibility. A smart contract collects contributions that exceed the predetermined fixed cap and then adjusts the final allocations of tokens by ratio, with any difference returned to owners.

Dynamic Ceiling: Instead of making the entire cap available to investors at once, dynamic ceiling ICOs create a series of hard caps which raise the capital in stages. This type of ICO has the advantage of preventing whales from buying up the entire allocation in one go, which could block smaller investors from buying in.

Create your product roadmap

Your ICO is a means to an end. Your investors will want to know why you’re raising this capital, what it’s going to be used for and where your company is headed. A detailed product roadmap is necessary to convince investors that your business is legitimate and likely to succeed.

The roadmap should contain:

  • A well-articulated vision of your project — hiring a copywriter can help you craft this.
  • A series of SMART (specific, measurable, actionable, realistic, time-bound) milestones and goals.

Write your white paper

A white paper is a pitch for your ICO. It will be the primary reading material for investors doing their due diligence on your project. This white paper will be vital in convincing investors that your project is legitimate and credible, and you’ll ideally want it in place before building your community and reaching out to investors, whether you’re doing a private or public ICO.

Your white paper should include everything mentioned above, from your market research and your team to your technology, tokenomics, and product roadmap. Don’t skimp on copywriters and graphic designers — the better your white paper looks, the better your project looks.

If you want a complete breakdown of how to write and structure your white paper, read the Cointelegraph guide on everything to know about white papers.

Getting ready for launch

Create your website and brand

Investors will judge a project by the quality of your website. Hire the best web developers and designers you can afford and don’t cut corners. If your project is international and you want to attract international investors, you should consider hiring professional translators to translate your website into the native languages of the jurisdictions you want to target.

Before your ICO launches, your website should also have a token sale landing page. This page should offer a snapshot of your project and its biggest selling points, as well as have your white paper clearly signposted. A well-executed landing page can be a powerful lead for your ICO.

Build your community

Community is everything in crypto. A dedicated, loyal, and enthusiastic community will be a game-changer in marketing your project and ICO. You’ll help to build your community with a serious public relations (PR) and marketing push.

In general, you’ll be best served by PR and marketing agencies specializing in ICOs and crypto. The crypto verse is unique, and most corporate and traditional practitioners won’t have a sophisticated enough understanding of the ecosystem, investors, or media.

PR: A great PR team has its finger on the pulse of the crypto media (and potentially tech and national media) and excellent proven contacts within it. PRs can get you featured in thought leadership pieces in top-tier crypto-publications, position you as an expert to be quoted in significant trending stories, write press releases that land, and, most importantly, know how to pitch your specific project to journalists. They can also get founders featured on podcasts and interviewed on YouTube channels hosted by famous crypto personalities.

Community groups: You want to ensure that you’re constantly engaged with your community before, during, and after your ICO. A community manager will organize and build your Slack, Telegram, and Discord channels, all while managing your inquisitive and enthusiastic investors. Be active on forums such as Reddit and BitcoinTalk, write your own Medium blog and frequently update your GitHub.

Social media: An engaged presence on the most popular social media channels is essential to keep investors and potential investors informed. Hire a social media manager who can give you an entertaining and engaging presence.

Pay-to-play: Many mainstream social media platforms banned ICO-related advertising in 2018 (although they have since relaxed some of these bans) but you can still run paid ads in crypto publications and other media. It’s worth experimenting with various types of advertising and pricing models (e.g., impressions vs direct response) at different stages of the token sale.

Influencer marketing: Getting a noteworthy celebrity on board can push the recognition and trust in your project to new heights. Ensure that you do a lot of due diligence and choose the right influencers — you’ll be tying your reputation to theirs.

Bounty programs: You can generate interest in your project pre-ICO by putting bounties on reporting bugs, promoting your project, maintaining forums and other fan projects, and other tasks. They are a great way to encourage crypto-savvy individuals to engage with the details of your project.

ICO calendars: You’ll want to ensure your ICO is listed on all of the most popular ICO calendars, such as Cointelegraph’s ICO calendar.

Rating agencies: Specialist rating platforms will rate and audit your ICO. They aren’t cheap but can offer an impressive stamp of quality and credibility.

List on crypto exchanges

It’s no good to have a brilliant project, a token that everyone wants to buy, and absolutely nowhere to sell it. It’s critical to have the token listed on exchanges ahead of your ICO date. Listing on high-quality, secure and legally compliant crypto exchanges will also help to promote your ICO organically.

Read also: How to Create a Cryptocurrency from Scratch and Start an ICO?

Exchanges all have their own requirements for allowing you to list, often depending on the nature of your token and business. Some of these requirements will be universal such as having an audited smart contract.

Because exchanges make money by charging fees on trades, it’s in their interest to list in-demand new tokens. If you have a sizable community and can demonstrate high demand for your token, you shouldn’t have a problem finding an exchange to list you. The application and listing process usually takes 1-2 months, so factor that into your timeline and overall ICO roadmap.

Post-sale: You’ve launched. Now what?

Remember what we said earlier: Your ICO is a means to an end. If you’ve raised the capital you needed, congratulations. Now, it’s time for you to stay engaged with your community and deliver on what you promised in your white paper.

Blog Credits: Cointelegraph

Essential Checklist Explaining Everything About ICO Development

Posted on by Shipra

 

Essential Checklist Explaining Everything About ICO Development

How well do you know about Initial Coin Offerings (ICO)? If your answer is “partial” or a “complete no,” then this blog declutters from scratch about the same. If you are looking for a guide material that can help you in knowing ICO and the need for an ICO token development company, this blog will serve that purpose.

What Is An Initial Coin Offering (ICO)?

Crowdfunding is a common method of pooling funds for a variety of projects. There are many traditional crowdfunding platforms across the globe that let entrepreneurs raise funds to launch their projects. Usually, such crowdfunding platforms charge registration fees and payment processing fees. Through the crowdfunding platform, entrepreneurs get the option to integrate with other social media platforms so that they can promote their project campaigns.

Well, crypto projects do indulge in crowdfunding to raise funds, and it is termed ICO. ICO is similar to IPO; however, the former doesn’t provide any equity/share in the product, unlike the latter. Whoever creates crypto projects and seeks funds for the same can indulge in the Initial Coin Offering platform, which is a decentralized method, i.e., no mediator or third-party involvement.

What Are The Types Of ICO?

Private ICO — As the name is explicit, in a private ICO, only a limited number of investors can take part, and that too net-worthy investors and financial institutions.

Public ICO — A public ICO is open to all investors out there. Anyone who wishes to invest in crypto projects can participate in public ICO token sales.

How Do You Get Started With Initial Coin Offering?

Firstly, let us look into the benefits of opting for an ICO and then gradually move on to the procedures associated with getting started. The crucial advantage is the non-involvement of third parties so that you can directly sell your crypto tokens to interested investors. And another major advantage is that investors across the globe can participate in token sales, so the chances of getting investments in your project are high.

Approach An ICO Token Development Company

Fundraising through ICO needs careful initial planning and analysis since it involves risks. Hence, it is necessary to partner with an ICO development agency that delivers end-to-end services from token development to launch to promotion.

Roadmap Creation

Every project needs a roadmap that tells the stakeholders the timeline of the project from scratch. When it comes to your Initial Coin Offerings, your investors need to be educated on the future of your project, which will convince them to buy your project’s tokens.

Market analysis

Before releasing your project, you must do a proper and thorough market analysis, which will help you in knowing the risks and proceed further. Again you can take help from the ICO development company as they’ll have a team of advisors who are industry experts and can help you with suggestions and clarifications.

Whitepaper Creation

A whitepaper basically comprises all the details regarding the project. It starts with the amalgamation of pain points of target audiences and gradually comes to the solution that the particular project can bring in. In addition, the whitepaper for your crypto project should include the token details, descriptions, utility values, roadmap, token price, etc. A whitepaper is one of the crucial elements that decides whether the project succeeds or fails. Hence, a whitepaper writer you hire should be well aware of your project.

Pre and Post-Launch Promotions

It is necessary to carry out pre-launch and post-launch promotions; for that, you can choose the platform where your audiences are active. Once you launch your ICO token sales, you need to promote it through popular channels. In that sequence, developing a website is highly recommended where you can list your project and feature the roadmap, which will eventually let you in pulling in audiences or investors.

Read also: 5 Best ICO Projects in 2022

Other than website creation, consider promoting on community-based platforms such as Discord, Telegram, and Slack. And of course, Twitter, Facebook, and Reddit are also perfect for educating and advertising your ICO projects.

ICO Development & Sales Model

While developing the tokens, you must decide on the token sales method. The soft cap and hard cap tokens represent the minimum and maximum amount of funds you need to raise. A fixed uncapped model represents that there isn’t any restriction on the number of participants who can take part in the sales and the amount to be raised. Whereas a capped model is vice versa.

Once your crypto tokens are developed, they can be launched and hence making them available for sale. Investors will buy your tokens in exchange for cryptocurrencies or fiat currencies. To make your tokens more familiar, you can also list them on crypto exchanges.

Conclusion

Most of all, you need to sign up for a crypto wallet so that you can store the funds you receive via token sales. So, the major part of your token sales’ success depends on the ICO launch service provider you ally with.

Blog Credits: Medium