You are launching an ICO! Sounds intriguing. YES, inventing a new cryptocurrency for the cryptocurrency market is very interesting and innovative. However, the most fundamental question is whether you can launch an ICO. If not, then this article will provide step-by-step instructions. Therefore, if you are considering something new and innovative that is also exceptional, this article will help you do something in the crypto world.
In this context, I want to provide a comprehensive guide that will help you launch an ICO and save you time and money since you will waste both if you need to know the proper way to establish or You can also take help from the best ICO Launchpad development company. Therefore, exercise caution and prudence before investing your valuable time and money. This article will help if you need a proper guidelines in this situation.
What Is an Initial Coin Offering?
An initial Coin Offering (ICO) is creating and launching a new cryptocurrency on the cryptocurrency market using Blockchain technology. ICO is primarily a fundraising technique, and this initial coin offering process enables the sale of new tokens to crypto investors to raise capital. Initial coin offerings (ICOs) conduct the entire Token generation and distribution process on the Blockchain. This method is also referred to as token offerings, crowdfunding, etc. In addition, all fintech entrepreneurs and crypto traders are familiar with various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dogecoin, and Ripple. However, do you know how these cryptocurrencies originated? Hopefully, you already know the answer, and in this regard, the concept of the ICO technique has played a significant role in the launch of these cryptocurrencies.
What kinds of Initial Coin Offerings are there?
Once you’ve decided to participate in a new ICO, you must know the various types of Initial Coin Offerings. There are currently two options.
Private ICOs
A Private Initial Coin Offering entails engaging a limited number of investors to raise capital. You can also determine the minimum investment required to participate in your ICO.
Public ICOs
A public Initial Coin Offering is another type of ICO, similar to an IPO. It is a form of crowdfunding designed to attract institutional investors and the general public. However, private ICOs are significantly more practical than public ones due to regulatory concerns.
10 Easy and Efficient Steps to Launch an Initial Coin Offering (ICO)
Step 1: White Paper
I’ve encountered numerous White Papers that exist for the wrong purpose. Many White Papers are marketing documents. This is the first indication of fraud. A White Paper should describe a problem in detail and devote a significant portion of the document to proposing a viable solution. Always provide evidence for why your proposed solution will work.
Step 2: Purpose of your Token
Determine how you will reward your contributors with the tokens they receive. Calculate and investigate the implications of the soft and hard Token cap numbers. Be wary of running uncapped ICOs, as people are growing weary of them. Choose a token symbol that is easy to remember.
Step 3: Terms and Conditions
You should conduct legal background research in advance. Determine the terms and conditions for your ICO. Determine who may and who may not contribute. It would help if you had a legal advisor on your team. Is your business’s nature even legal in your country? How do you plan to utilize the funds raised? How are tokens allocated? Will the core team retain some tickets for themselves? Always remain current on ICO legalities in various countries.
Step 4: Build a Great Team
This is the most difficult part for me. How do you convince people to believe in your idea — not just ordinary people, but credible people willing to stake their reputation on it? These individuals must have verified LinkedIn profiles. Many ICOs began with an overabundance of executives, such as the CEO, CFO, CSO, CTO, and blue chip advisors, but no engineers. This gives the impression that you are incapable of carrying out your idea. If your idea involves blockchain technology, your team must include blockchain specialists. It isn’t easy to find individuals with blockchain knowledge. Ensure that your network is enough to know the right people.
Step 5: Decide on what Token Technology to Use
After laying the groundwork, it is time to select the blockchain technology that will power your Token. Ethereum is by far the most popular and developed platform for launching ICOs at the time of writing. Creating Ethereum ERC-20 Tokens is straightforward, whereas implementing custom crowd sale logic around the Token may require some thought. For instance, you may have a discount structure based on the contribution date. Consider refunding contributors if the ICO fails to reach the soft cap… etc. There are also quick Token solutions such as WAVES and NXT, but they need to be more comprehensive for crowd sales.
Step 6: Execution Plan
Determine how many rounds of token sales you desire. For instance, a private sale, a presale, an initial coin offering (ICO), and a general sale may each have a different discount structure. In the past, numerous ICOs had been subject to extensive criticism. You should be fair and prevent a few individuals from purchasing all tokens. Therefore, please verify the user’s identity before allowing participation. One simple method is to create an allowlist (e.g., Enigma ICO allowlist). At the time of publication, the SEC (U.S. Securities and Exchange Commission) is prosecuting Token Sales without KYC procedures (e.g., ICON KYC), and some cryptocurrency exchanges are beginning to exclude cryptocurrencies that have not implemented KYC. KYC is difficult and cumbersome but is required by law in some countries.
Step 7: Token and Crowdsale Smart Contracts
Open Zeppelin libraries are useful for writing secure Crowd Sale and Smart Token Contracts when writing the actual smart contract and again within the context of Ethereum. However, be wary of overusing it as the agreement could become bloated, resulting in high gas fees for contributors.Always conduct extensive testing and auditing when handling other people’s money.
Step 8: Configure Hardware
There are numerous setups to complete. You will first need a wallet to store the funds collected during the ICO. A multi-sig hardware wallet is an excellent alternative. You will also need a backup plan if your wallet is lost or stolen. To launch and test your smart contracts using Ethereum, you must also configure an Ethereum node fully synchronized with the test and main networks. During this procedure, there may be trial and error, such as switching between geth and parity clients. Etc. You will also need to configure the hosting environment if you are hosting your website. In other words, prepare the hardware for your ICO in advance.
Step 9: Website
It would help if you had a responsive campaign frontend connected to a running node to monitor the sale’s progress. Your website must be intuitive and user-friendly, with clear instructions on contributing. Numerous reputable ICOs also provide a login system for users to manage their accounts and upload or download any necessary documents. In addition to enhancing your brand, a dedicated portal requires more work.
Step 10: Market Early and Market Right
In addition to creating brand awareness and running standard marketing campaigns via bitcointalk forums, LinkedIn, Facebook, Twitter, slack, bounties, campaigns, ICO listing websites, subscription lists, etc., conduct research into the mindsets of crypto traders and enthusiasts. People who invest in ICOs are cryptocurrency enthusiasts. Advertise in locations they frequent, learn who they follow on YouTube, and conduct video interviews. Video remains the most effective medium for conversion. Attend meetups and meet people in person to develop trust. Mr. and Mrs. Smith will need help understanding bitcoin to convince investors.
Closing Remarks
Having found a solution, you can launch an ICO successfully. It would help if you always remembered that you could accomplish anything. You only need a proper plan of action and determination. Even though launching an ICO is a novel and challenging concept, it has become popular in recent years.
You can establish yourself as a successful entrepreneur by reading this article and following the below steps. In the preceding section, I discussed this in-depth and will do so again. If you follow these steps, you will be able to launch an ICO, which will be of great assistance to all fintech entrepreneurs.
