The world literally explodes from new and steep ideas. All thanks to the blockchain technology, which crypto projects are based on. Funds for such projects are attracted through ICO. Of course, the future of the project depends on the quality of the ICO.
What influences the success and what can guarantee the hard cap? Today we will analyze the most successful cases of ICO and advice of influential people of crypto sphere.
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- What is ICO?
- How to increase the value of the token?
- What do you need to know about ICO?
- Features of ICO in contrast to crowdfunding
- Examples of successful ICOs
- Step-by-step instruction for creating ICO
- How much does an ICO cost?
- Tips for holding ICO from The Coin Shark
- Tips for conducting ICO from famous personalities
Initial Coin Offering, or, as everyone knows, ICO is a possibility in the field of cryptocurrency, which provides a great opportunity for start-ups to take a deep breath, at the expense of the initial offering of coins to investors. Within the framework of the ICO, funds are collected for developing and promoting the idea, as well as for increasing the brand awareness.
The cost of the token directly depends on the idea of the project. If it is of value to a person, can solve global problems or simplify lives, that is, it will be in demand, then the ICO project’s token will grow in price.
ICO is the best way to raise funds for blockchain projects. Only since the beginning of this year during the ICO about 2 billion dollars for 130 cryptocurrency projects was collected.
However, a piece of pie is interesting not only to people with good and honest intentions. ICO attracts scammers, speculators and hackers who use the fact that the law does not keep pace with the progress of technologies and cannot regulate it.
Some countries are already trying to regulate cryptocurrency and ICO at the law level. But, the attempts have not been crowned with success yet. Therefore, to this day the hands of crypto figures have been free.
ICO projects collect investments by selling tokens. Due to this, the investor automatically becomes a participant of the project. Investing in crowdfunding, a person makes a kind of regular purchase in the future time. That is, he pays for the purchase of goods or services in advance.
With the help of ICO, it is possible to attract financing to projects that are only at the stage of “packing” the idea, that is, at the initial stage. Crowdfunding, in turn, implies the acquisition of finished goods and services on special sites. That is, financing to zero product is impossible.
Most often, ICO and IPO are compared because of a similar process of attracting finance. As for crowdfunding, it is quite difficult to call it “a form of investment.” It is rather a kind of trading activity.
Financing by a crowdfunding method can be received by projects which already have a certain capital. Investments through the ICO tools can be collected even without the MVP of the product.
The best example of a “successful ICO” is Ethereum. It is also the first ever project with cool ICO.
In 2018, the crypto industry was blown up by the news about the ICO of Telegram messenger, owned by Pavel Durov. During the ICO, more than 200 investors were attracted; they invested $1.7 billion. Before the launch of Telegram’s ICO, the absolute leader in terms of collected funds was EOS, which attracted $4 billion.
Step #1: Formation of the concept and announcement
If you have a real idea, then take the time to study its relevance in accordance with the realities of the current and future market conditions. The relevance of the project influences the success of the promotion and ICO. If it is unable to solve global and/or private tasks, then it will not be of interest to society.
Step #2: Team and registration of the project
On average, from 20 to 30 people participated in the creation of successful IСOs. The organization of ICO should be carried out by a team of programmers, marketers, copywriters, PR specialists, designers, analysts and other narrowly specialized experts. The main thing is that they should be extremely competent in carrying out ICO.
After the formation of staff, it is necessary to register the company. This will increase investors’ confidence. After all, today we already know of a lot of cases when investors were deceived, and their funds filled the pockets of scammers. By registering a company and working out a mechanism for protecting investment capital, the level of trust automatically increases.
Step #3: Development of Whitepaper
In order for the financiers to have full access to the project, White Paper is used. This marketing beast is a powerful tool that is able to convert just an interested reader into an interested project participant or investor. The main thing is to properly submit information and explain everything in the simplest language.
Step #4: Creation and launching of the site
The site is designed to perform informative, advertising and selling functions. For ICO, one-page sites (landings) are created. Platforms conducting ICO should concern about the content, including the inclusion of White Paper in pdf format. In addition to the site, the effectiveness will be added by email.
Step #5: Advertising and promotion in social networks
The more noise is around the project, the more interested people will be attracted to it. The best place for hype is in social networks – Facebook, Reddit, Medium and other platforms. Also, do not forget about using all possible traffic channels. PR-campaign will help to form a wide and full-fledged audience.
Step #6: Bounty campaign
Help is not superfluous. Crypto volunteers (bountists) can be attracted to the project. True, they do not work for free, but for project tokens, which the company pays for simple tasks: reposting in social networks, writing reviews, reports, translating articles into other languages and for others.
Step #7: Tokens’ emission
Today it is not beneficial to create tokens on your own. To do this, it is best to use such platforms as Ethereum, Waves, NEM, NXT/Ardor, Counterparty and BitShares. Investors trust the tokens created on Ethereum most of all, because the platform is the only one that has its own function of smart contracts.
Step #8: Sale of Tokens (ICO)
It is very important that investments begin to “swim” in the project on the first few hours of the ICO. This is more than realistic, provided that the preparatory steps listed above have been properly implemented.
It is quite difficult to predict the exact cost of ICO by the end of 2018. Experts attribute this to increased competition. They also state that prices will continue to grow. Now the cost of holding fluctuates between $100k and $500k.
The cost of ICO includes the development of an MVP product (if it is provided for in the project’s idea), White Paper, team building, PR coverage, and more. At the same time, everything depends on the complexity of the implementation.
Tip #1: Speak the language of the target audience
The project should be described in a simple and understandable language. The level of how much the reader will learn the information and his desire to join the development of the project depends on the level of readability of White Paper, articles, posts in social networks. Nobody wants to invest in something they do not understand
Tip #2: Answer the key questions
By means of ICO funds are attracted only by the projects based on blockchain technology. It is necessary to substantiate in detail the need for blockchain in the project. Also, open up what problems it is called upon to solve and its value.
Tip #3: Analytical reasons
Investors invest only in projects with good prospects. Therefore, include the analytics of the market and the segment to which the project belongs in White paper.
Tip #4: The value of the token
Describe the role of tokens within the project and the benefits that its holders will have. It is also important to justify on the basis of value, how quickly and how much the token is able to grow in price.
Tip #5: Attract professional marketing to ICO
First of all, you should not try to do the preparation and launch of ICO yourself. Yes, after watching videos on Youtube, everything seems very clear. But it’s not like that. After all, in an hour-long video, no one will talk about the pitfalls and how to remove them so as not to go to the bottom. In connection with this, The Coin Shark recommends entrusting the organization, conduct and maintenance of the ICO to a marketing agency that specializes in blockchain projects.
Tip #1: “ICO is crowdfunding” – just agree
Experts recommend treating ICO as crowdfunding. To do this, meet the primary needs of investors and future users. Act as if financing is attracted in the traditional way. Such a move is credible.
Tip #2: Strong team
If the team has public figures, opinion leaders, advisors who have participated in well-known and successful ICOs – it’s worth telling about this.
Tip #3: Have patience
As practice shows, conducting of ICO often departs from the initial strategic plan. And this is normal! Do not immediately perceive barriers as a failure. Be patient and accept this as a chance to exceed your ultimate expectations.
Tip #4: Lead a transparent game
ICO investors have long pricked up their ears and at the slightest hint of a scam are winding rods. Transparency from the organizers of ICO and the creators of the project is important for them. For example, the address of charging tokens is published only by honest projects.
Tip #5: Platform for ICO
To receive funds during the ICO, you need a personal website for the project. But, this does not mean that it should be used only in such a way. On the platform, you should place the basic information about the project, White Paper, Road Map, the size of soft and hard cap, as well as display the amount of funds raised.
ICO in 2018 is of great importance for the digital currency. Because it opens wide horizons for start-ups and investors, especially beginners. Even if the project has nothing but an idea, it still has a chance to collect the necessary amount of funds for scaling and full implementation.
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