How to Launch a Successful ICO?
We are giving all the necessary information you need to know before launching your ICO project on blockchain.
Crowdfunding has recently gained popularity because it enables those with business ideas to secure the capital necessary for their white label ICO launchpad. Crowdfunding has grown more fascinating since the emergence of cryptocurrencies. You can get the money you need through an initial coin offering, or ICO, without having to go through any elaborate legal procedures. It’s as simple as that: you raise money for your cryptocurrency project, and your early backers receive coins.
Let’s start by discussing ICOs, an initial coin offerings. To understand it, think of all the companies that didn’t have enough money at the start of their journey. So they would need to raise funds, find investors, or offer the public a part of their company’s shares. This sale of the company’s shares is an initial public offering. With crypto, a similar idea was proposed initially.
Projects would sell a part of their token supply to the public, which is what ICO is responsible for. This process is the one and only team behind the project. This team also reaches out to exchanges asking them for the listing of their talking.
Since listing takes time, the investors have to wait until it happens. The team behind the project is also responsible for managing their smart contracts. They are also responsible for the promotion and advertising of their token.
This sounds like a lot for small teams or individuals who want to do ICOs. This, in turn, leads to failure in many projects. Also, it leaves loopholes for those who want to exploit the system, scammers and other bad actors.
Just as with ICOs, tokens are not immediately available for trading. Where IEOs prove to be safer than ICOs, though, is a vetting process that projects must go through before they are listed.
The following six tips will help you start using cryptocurrency and launch a successful ICO.
Establish Specific Goals
Your ICO should be managed similarly to any other campaign, and each campaign needs to have clear objectives from the beginning. Nobody will support something they don’t understand, so you must be clear about where you want to take this project and address all the important questions. You must give your investors a whitepaper and a roadmap to your ICO to earn their faith. Your whitepaper acts as a roadmap for your startup, outlining every step in detail, including how the system is constructed, how you intend to advance it, etc. Your roadmap should function as a timeline for your ICO project, with each stage being described and given a timeframe and budget.
Make Sure That You Meet KYC/AML Requirements
Cryptocurrencies’ anonymity and the ability to avoid establishments like banks are two of their key benefits. But as cryptocurrencies gain popularity, they inevitably come up against real-world regulations that cannot be avoided if you want to operate your company legitimately. Despite some restrictions, the advantages outweigh the disadvantages. Your cryptocurrency must adhere to at least KYC (Know Your Customer) and AML (Anti-money Laundering) requirements, regardless of where you live. It’s essential to know who your clients are, their names, where they live, and how they pay you since only then can you prevent putting yourself and your business into trouble. You don’t want your coins to be used to support anyone’s illicit activity.
Protect Your ICO
Any new technology that involves money will undoubtedly draw hackers, and cryptocurrencies are no exception, as demonstrated by the loss of nearly €51 million in cryptocurrency by the mining marketplace NiceHash. How then can you defend yourself from these assaults? Although different security professionals will have varied viewpoints, most will concur on a few points. First, refrain from publicly discussing cryptocurrencies on any social networking platform. You shouldn’t treat places like Coinbase as banks since, despite being quite secure, they are still vulnerable to attack. Contact your mobile service provider and request that they set up every security feature they can think of, add a password to it, and complete a time-consuming process that involves attaching a “do not port” SIM card to your account.
Gather An Expert Team
You will need to assemble a skilled team of professionals who have all the technical know-how and skills to implement your cryptocurrency endeavor and to handle any potential complications because ICOs can get rather complex, and complexity eventually breeds problems. But in addition to their knowledge and abilities, they may support your startup in other ways. You can benefit from their experience and standing in the market to gain the confidence of possible investors in your business. This entails posting their bios and resumes on your company website so that backers know who will handle their money.
Come Up With A Pricing Strategy
It is totally up to you to choose how much to charge for your initial coin offering (ICO), as it all relies on your plans and objectives. You can rely on one of the four most popular pricing strategies. In the first, although the price is not yet known, investors receive coins based on the amount they deposit. You can also decide to use coins with set prices and restrict investor trading until after the freezing period. The third approach uses a Dutch auction, where the first coins are the most expensive but eventually become less expensive. The most active backers of an ICO will get to buy tokens at the best price, thus as a final option, consider one where prices climb.
Establish Protection Mechanisms For Your Investors
You must safeguard your investors since, without them, you would be unable to launch your bitcoin business at all. How? Discounts might be given to investors who made initial investments. Additionally, you can create an escrow wallet and list every key holder’s name in it. Lastly, if they believe the campaign is too hazardous for them, you might offer to reimburse their money.
Always follow the SEC’s lead and approach initial coin offerings (ICOs) similarly to any other investment opportunity. Providing that a firm is incorporated in a jurisdiction that permits it and that regulations are followed, an ICO is still a viable option for businesses. An ICO allows investors to participate in intriguing projects early on. While not all cryptocurrencies will rise in value to the level of the most valuable ones like bitcoin and ether, making the correct investment in one can yield enormous rewards.
The secret is to do due diligence and comprehend the market, the companies, and their solutions to determine whether they can flourish and offer satisfactory returns to their investors.