How to launch an ICO: Step-by-step Instruction
Today there are hundreds and hundreds of different ICO campaigns and billions of dollars have been invested in this market. The Coin Shark has already posted an article about ICO and today we would like to talk about what a particular startup actually should do to launch an Initial coin offering.
- First of all - “read the manual”. The team of a startup should take care of what is the ICO, which legal framework (if any) has this form of attracting investments in a particular jurisdiction, is it necessary to pay taxes on income received from an ICO, etc. It is also better to register a company.
- Do you actually need that? Yes, the ICO is not suitable for each business. Instead of huge profits companies often have to spend hundreds thousands of dollars on media publications and other advertising, because if they don`t - many will consider the ICO not trustworthy enough or simply won`t even know about it. Perhaps it is better to meet some people and find two or three large investors that will be better than having thousands of small token buyers.
- There's really a lot of preparation. First of all, the team should think over and determine a detailed business plan, study the market, understand how the project can be interesting for investors and useful for users, what`s the marketing strategy and how many stages includes the ICO. And then write a whitepaper. It is also necessary to consider that even when you have the best developer or a marketing specialist in your team the public is likely to call your ICO “scam” if they don`t have a lot of linkedin contacts. A multilingual website with investor`s personal account should also be created, as well as a number of social media accounts to communicate with the community - from Bitcointalk and Reddit to Youtube and Twitter and use this platforms. Facebook, Instagram and some other social networks have recently banned all ICO-related advertising.
- And here comes the time to issue tokens - project`s digital “stocks”. It is possible to do that using special platforms (Ethereum, Waves) or create a new blockchain from scratch. To further operate the tokens it is also required to create smart contracts.
- A project has to be listed on different ICO-trackers and schedules where potential investors will find the information about it. Some leading platforms will ask for a huge amount of money/cryptocurrency for the listing, while small ones will be glad to get tokens or even list a project for free.
- A token sale begins. This is a rather stressful time when the teams has to ensure 24/7 that all transactions are successful, tokens are displayed on investors accounts and that everything is working seamlessly.
- Tokens can be listed on cryptocurrency exchanges if it is relevant for the project. In this case a huge audience of exchanges can access them. Investors will also be able to trade tokens and their rate can skyrocket or decrease.