With a plethora of ICOs around, failed and successful, it's important to learn from them. Here's the roadmap to doing a million-dollar one for yourself.Abhishek Kumar
ICOs are here, and they're killing it big time!
Behold the startup culture! Companies coming out of nowhere, investors and potential buyers reaping rewards of their trust, and a lot, seriously, a lot of money being circulated! Well, fundraisers and kickstarters have become essential parts of any new project that one may work on.
Initial coin offerings are the way to go, here, especially when it comes to the cryptocurrency scene. It refers to the sale of tokens of a company to investors and potential buyers in order to raise funds to enter the market. ICOs offer their investors tokens of the cryptocurrency being integrated in return for funds, whereas IPOs offer a part of their company, essentially, in terms of stocks. This is the reason why ICOs could become the shares and securities of tomorrow.
ICOs have become massively popular within the crypto sector. With the success of the Ethereum ICO, many new players have looked to enter the market using this exact strategy of offering tokens and coins for sale, promising future returns on investments, in exchange for present funding to run their projects. In 2018, the Telegram ICO has already crossed a whopping USD 850 million raised in funding. This lays testament to the fact that ICOs is indeed one to watch in the near future.
There are some crucial stages that make up the planning for any ICO. We have broadly divided all the activities into three stages, follow this, and you’ll get an overview of setting up your very own million dollar ICO-
1. Pre-ICO: this is where all the action happens. Planning, organization, coordination and strategy planning is all done at this stage. Usually, after the idea of the project is finalized, whitepapers and other technical documents are readied up for reference.
Prototypes and dApps are developed so that investors can get a look and feel of what they are getting their hands into. Assembling a good team becomes highly important at this stage, as they will be the heartbeat of the project.
The importance of Prototype and dApp cannot be stressed more in the present ICO world. Have a look at this detailed "How to do a Successful ICO" guide to understand the technical intricacies.
Lawyers and legal advisors cannot be neglected, as they may prove to be of huge help when it comes to adhering to local rules and regulations.
Not much has been cleared by the regulating bodies across the blog, but you can have a look at the FINMA guidelines here.
Community build-up is also a crucial part of the pre-ICO stage, as it helps to spread the word about your project, and in turn, attract potential investors.
Once all is said and done, the token economies and sale timings need to be finalized, so that you can figure out when and to whom would it be the most profitable to sell your crypto tokens. Once your ICO goes live, then comes the…
Security is of prime importance once your ICO goes live. You must protect it from scammers who may use address scamming to trick investors into transferring funds to wrong accounts. A reliable hosting service and a simple website is a must here, with FAQs and guide/tutorial videos added wherever necessary.
Keeping the community engagement is a large part of security, as you must ensure that your investors/users communicate with you using legitimate sources, and know how to go about using your project, in order to defend themselves from potential scammers. Once all is said and done, you have…
locking up your tokens after the ICO is generally a good idea. This prevents pump and dumps traders from dumping all their tokens on the market to generate quick profits. Also, since your project is a new one, exchanges would have received multiple requests to trade your tokens. Keep in contact with them, as you may be needed to take some remedial steps in order to deal with a large demand.
Community interaction is a must here too, as you must keep your investors and users updated about the latest happenings within your project. Only with the cooperation of your users, and technical skill of your team will you be able to build and sustain a huge ICO.
Congratulations, you now know all that you need to know about setting up your very own multi-million dollar ICO! Remember, planning is important, and keeping your community with you at all times is crucial! The path to a huge ICO is now crystal clear for you!