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This is turning to be the era of crypto. Initial Coin Offering or ICO offers a startup great way to raise initial capital for its crypto currency based business. ICO or Token Generation Event (TGE) allows a business to get a head start as per the roadmap outlined in the White Paper. Through ICO, a business can build the necessary capital to compete successfully in the industry it operates. Moreover, since ICOs utilize cryptocurrencies, you get greater freedom and flexibility.
White paper development and marketing
The developers are expected to bring the project to a certain technical stage before the announcement for a public token sale could be made. The ICO development invariably involves the creation of digital coins and White Paper. The project White Paper gives succinct details about the ICO to the investors and provides them the opportunity to understand the project’s goal in detail. Marketing plays a key role in the success of an ICO, and the developers use a variety of forums like Bitcointalk and Reddit to develop the interest of the potential investors in the ICO.
Utility and functionality of token
Once a startup business has established its goal, it can use the sales process to get an idea of what the investors are open to spending. The marketers can influence the price and reveal precisely how the funds raised through crowdfunding will be utilized. The value of an ICO token depends to a large extent on its utility as well as functionality.
Tokens to raise the funds
In an ICO lunch, the token holders pre-pay for a service or product. For example, if you are a startup in the business of development of video games, you can issue digital coins or tokens for the same to raise the funds. For the investors, these tokens will represent the purchases in the game once it is completed. When they know which all items they will be able to purchase once the game is completed, they can reserve those items for now. This benefits both the developers and the investors. The developers get the capital upfront for the development of the project while the investors stand to benefit in case the project succeeds, the coins they purchased initially will have significant appreciation in value in the future.
Essentials to launch ICO
- The following are needed to successfully launch an ICO
- Robust backend infrastructure
- Development of Roadmap and White Paper
- Adhering to regulations and security checks
- Management and maintenance of Escrow accounts
- Marketing and PR
Getting started with ICO – step-by-step process
ICO is the first step of fund raising and should be able to able to gain the interest of the prospective investors. For this, following steps need to be followed.
Step 1: Creation of token
Return in ICO is defined in the form of Tokens whose value is likely to grow in the future. Tokens are generally made ERC20 standard compliant which allows them to be used as monetary assets and become part of wallets. Tokens are usually created using Ethereum platform that doesn’t require you to create a blockchain from the scratch. Smart contracts allow for the exchange of tokens between the parties.
Step 2: Putting cap on tokens
It is important to limit the number of tokens that will be out for exchange so that their price increases in the future. The price of token is initially kept low.
Step 3: Whitepaper
It is important to create a White paper that excites the prospective investors. It should not be treated as a marketing tool, and should provide complete information about the project, the existing problems and how the project solves those problems.
Step 4: Creating the buzz in blockchain community
Creating buzz in blockchain community is important for selling the tokens. Here, innovative ICO marketing tactics become all the more important.
Step 5: Advertising on exchange platforms
Advertising about the ICO on crypto exchanges makes it easier to attract the attention of the investors. Exchanges like Bittrex, Binance, HitBTC and Poloniex offer excellent platforms to advertise about your ICO to the buyers.
We at Flexsin are at the forefront of ICO launch, ICO consulting, ICO development and marketing. Our blockchain experts will help you raise your ICO with all the benefits of blockchain into it. Our expertise spans across the complete spectrum of blockchain product development and ICO app development which is truly decentralized, borderless and trustless.
Our ICO launch app development services include:
- Pre-ICO Strategy
- End-to-end ICO Launch Management
- Token Design
- ICO Marketing
- Bounty Programs and Campaigns
- Escrow Services
- Platform and Protocol
- Code Audits
- PR and Communications
- Consulting and Advisory Services
We align our technical expertise to meet the objectives of the ICO project in hand. Cryptocurrencies are here to stay, and we believe that they can coexist with fiat currencies. Contact us to get insights on “How to launch a successful ICO” and our experts will help you raise the funds through crowdfunding for your business expansion with their customized ICO launch development solutions.
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